US Payroll Outsourcing – An Overview
US Payroll
Outsourcing – An Overview
Introduction
Even
the most meticulous and experienced professionals in the United States find
that payroll can be a headache. Slap on a stiff penalty for a tax filing
omission, and now we're talking a full-blown financially-induced migraine!
For
many US businesses, payroll service providers offer an attractive and valuable
alternative to in-house payroll processing. Chosen
correctly, they provide a less expensive, simpler means of paying your
employees, filing your taxes, payroll returns, and performing a host of other
duties these payroll service providers can't wait to tell you about.
However,
choosing poorly is like starting a new job you weren't right for in the first
place -- it's a hassle to leave, but if you stay, you'll be perpetually
frustrated.
Businesses
at an early stage e.g. start-ups or small companies, often initially process
payroll themselves for any number of the following reasons:
- They consider
in-house processing to be more cost-effective than outsourcing
- They are protective
of wage information
- They want to
maintain control over payroll data to handle last-minute changes.
In
truth, smaller businesses with a stable, salaried staff and minimal changes in
tax obligations may well be better off processing internally; it can certainly
be more convenient and efficient if your needs are straightforward. But many
ultimately discover it's not all that cheap -- especially when you factor in
the time spent managing the process, hiring payroll specialist employee - part
or full time, maintaining infrastructure for the same in office etc.
Plus,
without the proper knowledge of payroll procedure and access to a sound payroll
software, it's easy to make mistakes. Employees as well as federal, state, and
local tax collection agencies need to be paid in full, on time, and in the
proper manner. Usually, late payments are cause for monetary penalties.
Finally,
using a payroll service provider can ease your mind. Some reports quote the US Internal
Revenue Service reporting that one out of every three employers have been
charged for a payroll mistake, with total penalties reaching into the billions
of dollars. And given the ever-changing nature of tax regulations, it's easy to
make an error that can grossly affect your bottom line.
GJM & Co. can help you select the right
payroll service provider -- as well as coach you on switching to a new one if
you need to change. In addition to offering up the nitty-gritty on payroll
services, we will simplify the industry and empower you with solid working
knowledge to apply to your search for a provider.
When to Outsource?
While
the majority of U.S. businesses process pay checks internally, this is not
always cost-effective. At minimum, internal payroll processing requires the
purchase of a computer or manual/cloud accounting program and extensive
training to use it. In addition, businesses need to keep up to date on changes
in personnel, deadlines, and tax requirements on an ongoing basis.
Using
a payroll service provider generally makes sense if your payroll changes with
each pay period. If your company has employees working varying amounts of hours
each week or has a significant turnover rate, a payroll service provider can be
a time-saving and cost-effective alternative to internal processing. Using a
payroll service can also be helpful if you have to pay payroll taxes for
multiple states.
On
the other hand, you could engage an accounting firm like GJM & Co., at a
nominal cost, which is expert in managing payroll processes with such Payroll service
providers that could relieve you of the internal tasks involved in providing
the data for employees salaries, their hours, days, PTOs etc. to the Payroll
service provider periodically in line with the pay cycle (be it weekly,
bi-weekly, semi-monthly or monthly)
Services provided
A
payroll service provider’s basic services include calculating payroll and tax
obligations through their robust technology platforms that are constantly
updated for any tax regulatory changes, process the employee and tax payments
via direct deposits, and providing management reports to you as the employer
for payroll accounting. An accounting
firm like GJM & Co. can take care of
the payroll accounting too. Payroll
payments can be issued on a weekly, bi-weekly, monthly, semi-monthly or yearly
payroll basis.
In
addition, payroll service companies also offer plans above basic services that
file the payroll tax returns every quarter and issue W-2 forms annually, offer
tie-ins with 401(k) and mutual fund plans allowing employees to designate
automatic deductions from their pay checks. And for larger companies with more
complex processing needs, some payroll service companies have even begun to
offer integrated HR software systems that track employee benefits-related
information in addition to regular payroll data.
Pricing
Our
best picks of payroll service providers today include Intuit QuickBooks
Payroll, Gusto, ADP, Paychex, OnPay, Trinet, JustWorks. These Payroll service providers have
different plans offered encompassing different services that best suit your
organization and at different prices which are economical. We at GJM & Co. could help you choose
which payroll service provider would be best fit for your business.
To
conclude, ranging from small start-ups to large enterprises, payroll is a
challenge for all types of businesses, given its tedious computations, ever
changing legislations, error risks in absence of an expertise. GJM & Co.
take care of these issues by supporting you manage your payroll smoothly. We assist
you in making the right choice for your Payroll software by assessing
your organizational requirements (health insurance, 401k and more). Our
dedicated payroll expert shall coordinate with you – weekly, fortnightly or
monthly, to gather your employee attendance (Hours, Leaves/PTOs etc.) and
process the payroll for you through these Payroll service providers in no time
assuring timely employee remunerations.
Engaging
us as your accountants will also assure
your Payroll is accurately accounted into your accounting software to keep
track of your Employee costs. Our clients
always rest relaxed about their payroll obligations as they are aware we are on
toes for them in managing their show.
Our
payroll team is experienced with a number of payroll service providers and
their software platforms e.g. Intuit QuickBooks Payroll, Gusto, ADP, Trinet,
JustWorks, Namely, Insperity, Zenefits and more!
Thanks & Best
regards,
Knowledge Base team
GJM
& Co.
Chartered
Accountants
Outsource to Outperform
Accounting |
Bookkeeping | Payroll | Taxation | Business Setup
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