Companies and their human resources teams must complete a variety of responsibilities on a daily, weekly and monthly basis. These obligations range from recruiting to employee reviews to ensuring office culture is always improving. With so many tasks to take care of, it's easy for things to fall through the cracks, causing workplace stress and anxiety. To avoid these overwhelming feelings, HR personnel can outsource some of their more nerve-racking functions including payroll. Using a third-party company for this duty offers businesses many advantages. Let's take a look at five examples:
1. Reduction of cost
Accurate reporting requires complete and correct employee records. It can be difficult for companies to complete this task without the appropriate technological resources at their disposal. Outsourcing payroll can help companies lower their operating costs by providing the necessary software to streamline the process, according to Small Business Trends. Working with a partner with its own system can make the payroll procedure that much more efficient and help business owners and their employees focus more on core company practices. By leaving the job to the professionals, entrepreneurs can rely on a dedicated resource that works specifically for their organizations. Managers can then turn their energy toward improving other elements of the company, including customer service.
2. Improved federal and state compliance
Organizations must follow federal and state payroll and tax regulations to avoid expensive penalties. Most often, these fines occur due to late or incorrect filings or reporting. In addition, these government requirements are always subject to change. If human resources and payroll employees aren't familiar with codes or aren't able to consistently monitor for alterations, companies could face even more costly fees.
"Outsourcing payroll can help workers free up their time."
Payroll isn't the only duty third-party partners will take care of. These vendors can also help companies meet federal guidelines for healthcare coverage for their employees. Large employers with 100 or more full-time equivalent (FTE) employees – those who work at least 30 hours per week or whose hours are equal to at least 130 hours per month for more than 120 days in a year – and small businesses with 50 or more FTE workers will need to provide coverage. Failing to offer insurance could result in costly penalties for employers, so it's crucial for these plans to provide the most accurate – but still cost-effective coverage – possible for organizations. For documentation purposes, large employers must complete IRS forms 1094-C and 1095-C, while small businesses must fill out 1094-B and 1095-B.
Payroll providers can guarantee payroll is submitted on time and is completely correct. These partners can also ensure compliance with federal regulations for healthcare requirements on the necessary documentation to be submitted to the IRS. Many vendors will take the financial responsibility if any errors are found. Furthermore, these businesses will remain current on any legal guidelines affecting their clients to make sure all filings are meeting government standards.
"Outsourcing payroll can help workers free up their time."
3. Take back time
Payroll can be a time-consuming process, especially if the people completing the task aren't as knowledgeable as they should be. Constant attention to changing federal and state regulations, input of various forms of data and necessary double-checking for errors can cost employees valuable minutes and hours. Outsourcing payroll can help workers free up their time to focus on other more important and more job-specific obligations, according to The New Talent Times. Third-party payroll providers can often complete this task with ease and finish the filing procedure with time to spare.
4. Greater access to technology
It's common for companies completing their payroll in-house to use forms of software that are old and outdated. This practice can lead to incorrect and late filings and can cause organizations to waste valuable time. Working with a payroll partner will give HR and payroll teams access to helpful technology and programs to assist with this task. Comprehensive systems can keep track of alterations to government requirements and cut the amount of time it takes for employees to complete their payroll.
5. Professional support
Similar to a greater connection to helpful technology, using a third-party payroll provider offers companies a team of professionals with years of expertise and experience at their disposal. The payroll process involves many steps that can be overwhelming to businesses and their HR teams. Outsourcing this responsibility puts the task in the hands of people who can complete the obligation quickly and accurately, using the newest tools available to ensure companies are compliant with federal and local standards. These professionals can also maintain secure payroll practices to keep the information of employees as safe as possible.
Organizations may be hesitant to outsource their payroll process to another company. The thought of giving up control and instant access to their data can be overwhelming. Utilizing a third-party provider, however, offers businesses a variety of benefits. From cost and time savings to increased access to helpful technology and a professional team, outsourcing payroll can assist companies complete their payroll quickly and accurately.
6. Better customer service
By outsourcing the payroll function of their company, business owners can gain extensive care and service as a customer. Third-party partners have an expertise in the various facets of payment and benefits, providing attention to detail and dedication to their client to ensure all records and statements are accurate. Furthermore, organizations that outsource their payroll are gaining a credible source of information for payroll, benefits and HR trends and news.
Triton HR offers a concierge style of services, where companies can customize their selection of functions for Triton to complete. Along with this partnership, Triton HR provides the highest level of customer service, while ensuring the offering is cost-efficient and easy to implement. From mobile processing to employee self service to maintaining compliance with federal and state regulations, Triton HR presents a comprehensive collaboration of services.
