Payroll services and management are vital aspects of HR and businesses tend to regard payroll as an in-house job. However, there can be many benefits to outsourcing payroll to accounting professionals while still maintaining control over confidential data and sensitive wage information.
According to Entrepreneur magazine, processing paychecks internally might not be the most cost-effective solution due to buying accounting programs and training employees. The magazine recommends companies that make payroll changes each pay period to outsource to a payroll service to save time, accuracy and headaches. The magazine warns businesses that making mistakes can be easy and result in penalties from the Internal Revenue Service.
Accounting experts suggest organizations consider asking themselves five questions when evaluating the benefits of outsourcing payroll to a service firm, including: the payroll complexity, what software the firm uses, frequency of updates, customer service and budget adjustments. Companies can determine their rate of growth, turnover and revenue to determine whether outsourcing payroll is beneficial.
Utilizing a payroll service can be a difficult decision for businesses, but taking the time to outline the company's needs and how the service firm can provide benefits can free organizations from payroll mistakes and penalties.
