Are you a business owner who loves taking all the business intricacies into your own hands and exhausting yourself to death? Or, are you someone who believes in the delegation of tasks so that you can focus on the growth of your business?
Well, if you are the latter one, congratulations! And if you are the former one, you need to understand the importance of delegation. As a business owner ― big or small, you must focus on the growth of your business and your employees. But learning the technicalities of payroll management will cost you time.
Therefore, many companies hire third-party payroll service providers who specialize in these services.
If you still find it hard to understand the need to hire a third-party payroll, here are a few concrete reasons to believe us-
Reasons Companies Hire on Third Party Payroll:
Provides Quick Turnarounds
Businesses have to ensure all the payroll processes are executed as planned.
Tell us what do you prefer to spend most of your time doing?
Doing administrative tasks or planning how to grow your business? Planning out the payroll processes, taking note of the different functions, and executing them can consume a lot of your time.
This is where the third-party payroll comes in.
These service providers have their vendors in place and have the solutions integrated into their platforms. This way, they can execute such tasks quickly.
As a business, taking care of the changing local and federal laws is challenging. And, changing your payroll system according to the new regulations is even more complicated. It’s painstaking to keep up with the changing laws and implement all the payroll system changes.
With a payroll management service provider, you can delegate the compliance tasks to the service provider and focus on your business. Having a payroll service provider helps you streamline the compliance function of payroll.
Helps save money
How often does your human resource team create strategies for your company’s growth rather than maintaining the payroll books? Now think about the money you are losing while your HR department focuses more on manitaning the payroll books instead of expanding the company.
You can manage the payroll books through software, but only your team can plan and execute strategies for your business. If your team is spending more time maintaining the payroll system, it is difficult for you to grow your business.
So what can you do? Expand your team and hire more talent, right? Instead, you can save the entire cost by hiring a third-party payroll service provider who has their team in place specifially for this. And, all this is done at a lesser cost than what you would pay if you hired new team members.
This saves your time, your team’s time and helps you focus on the growth of your business rather than doing the administrative work.
How many times have your employees come up with a delayed payment situation to you? It can be exhausting. With the fully automated process of payroll, your employees get their payments consistently every month.
Third-party payroll providers have tie-ups with banks, which means the payroll system is standardized for your business, and none of your employees would face the issue of a delayed payment.
5 Important Things To Consider Before Hiring Third Party Payroll:
How much will it cost?
Once you have your payroll budget set, understand whether the payroll service provider fits into your budget and the services they provide in that budget.
Once you know this, understand whether the provider can fulfill your requirements within that budget or not. Also, find out if there are any hidden costs to this.
What is the process of payroll management?
Before signing up with any third-party payroll company, ask them about their process and the systems they have in place. Before collaborating, there must be complete transparency about the work process between the two of you.
Let’s say you are a small business that has hired a third-party payroll company. You have worked with the service provider. But after a few months, your business requirement changes, and the company refuses to support your changing requirements. That’s inconvenient for you, isn’t it?
You must have clarity on the entire working process, strategies, turnaround time, and internal support you will get from their team.
How extensive is the automation?
Determine the type of technology your payroll company uses, the features it has, and the results of using a particular technology. While determining this, ensure that the company does not use any outdated technology. If they use outdated technology, it could double your work instead of reducing it.
What are the protocols to ensure data security?
Data security is one of the primary concerns when hiring third-party payroll. Since the payroll will have critical information about your employees and the company, you must understand the security features the third-party payroll offers. Some features that you must look at are daily backups, redundancy mechanisms and two-factor authentication.
What add-on services do you offer?
Find out which services are included and which services are not included in the payroll. Let’s say you are a business that wants to avail tax returns filing, temporary staffing, statutory compliance, leave management. The third-party payroll does not include these services, and you need to buy them at an additional cost. You must make a note of this before availing any service.
Also, find how much you will have to pay if you will buy these additional services from your third-party payroll.
In a nutshell, hiring third-party payroll, can smooth out the payroll process and you can focus on your business without worrying about handling the technicalities of payroll. Also, your employees will get timely payments and get their issues resolved quickly.