There are two ways that businesses often figure out how to do their payroll processing. First, the usual — do it in-house manually or by using DIY bookkeeping apps. The second is to go the route of using payroll processing services.
If you’re a business owner, trying to figure out which path is the best for your employees and your business can be a tough position.
The IRS handed out nearly 5.5 million civil penalties in the 2020 fiscal year — costing businesses nearly $5 billion in charges. Payroll processing services save you from these penalties by providing on-time delivery of paychecks, accuracy, sick leave, preparing and sending taxes, and more.
How can you tell when it’s too much for you and your in-house payroll team to handle? Keep reading to find out.
What Is a Payroll Processing Service?
Payroll processing services, like the one you can find at https://www.ignitehcm.com/solutions/payroll-processing, handle the part that has most business owners and directors the most frustrated.
Signing checks and processing payroll isn’t what you signed on for when you started your business, it was innovating and providing a valuable service. Payroll services aim to do the same — the valuable service they provide is: getting your focus off of payroll and on the objective of your company.
A payroll processing service isn’t only a piece of software, but a team of people dedicated to getting your payroll in tip-top shape and providing backups in case of any business-critical missteps along the way.
What Are the Advantages of Payroll Processing Services?
These payroll solution services have many advantages over in-house bookkeeping with DIY accounting software. Other than having an entire organization focused on your payroll, there’s a list of things you can’t do without outsourcing your payroll.
- Save time
- No more printing, signing, and distributing paychecks and pay stubs
- They generate reports for your accountant
- Prepare your payroll taxes and returns and remit them
- Reduce payroll mistakes
- They increase the security of your payroll data
- Help you stay compliant with government regulations
- Bring to bear the experience of experts in payroll
- Data to track trends and make informed decisions
- Give your employees self-service power
- Gives you the ability to scale your business up and down quickly
Payroll solution services give a lot of benefits, but they can all be summed up as convenience and security.
When You Need Payroll Processing Services
If by now you have asked if you’re following up on even one item we’ve discussed so far, it’s the first indication you need to get payroll processing services. Your team getting confused and making errors is sign number two.
The last sign is worker burnout. It’s a lot to keep payroll moving and the sheer volume of things to do never ends. If your business grows but your in-house team doesn’t, you can place a sure bet that burnout will start happening quickly.
Businesses expand and contract quickly to adapt to the ever-changing business landscape of the past two decades. If your current payroll solutions are lagging behind, it’s holding you back.
If your business has any of these symptoms, you can rest assured that a payroll processing service will fix it.
Taking Your Hands Off the Wheel?
Employing payroll processing services doesn’t mean you’ve given up control. What you’ve actually done is expand your control, flow of information, and ability to react to current and future needs.
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