For many businesses, payroll services offer an attractive and valuable alternative to in-house processing. Even the most meticulous and experienced professionals 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.
Should you use in-house HR staff to process payroll internally? With Premier, you’ll receive a white glove, simpler means of paying your employees.
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.
Companies often initially process payroll themselves for any number of the following reasons:
Budget: they consider in-house processing to be more cost-effective than outsourcing.
Financial constraints are all too common barriers to professional payrolling and benefits administration services. As your company grows you may find payrolling partners to assist you in managing your contingent workforce. Without a dedicated staff member tending to tax law, you’re on your own until you are in a place to be able to search, select, and hire a strategic payrolling solution.
Precedent: they are protective of wage information because ‘that’s the way we’ve always done it’
One of the most pivotal shifts you can make as a company is hiring a new HR manager. If you or your department has recently recommended or considered outsourcing payroll to a strategic partner, it may be the right time to reflect on why you haven’t made the switch before, and what advantages can be gained by replacing ‘the way you’ve always done it’ with a proper, industry-specific and award-winning payrolling management firm. Just by reaching out with questions that arise can bring you closer to making the right decision, and can inform you of barriers and benefits to converting in-house HR administration to a payrolling powerhouse with professional assistance.
Limited: they only have highly seasonal, short-term contractors (2-3 weeks over the holidays)
Owner/operator companies or those with a small staff count are both qualified companies to handle payroll internally. As team sizes grow, tax law gets complicated and there’s no justification for putting critical decisions around benefits administration on the back burner due to your restricted time, especially when professional payroll partners exist to relieve you of a headache that inevitably comes with growing beyond a merely seasonal or short-term hiring timeline.
Automated Platform: the limited functionality within fly-by-night payrolling apps is sufficient for short-term needs
Any time you come across a payrolling service that is first and foremost an app, you should consider that very few if any systems can actually combine benefits administration and HR management. Relying on your phone’s battery life to understand and interpret the nuanced and intricate risks associated with compliance is a gamble. You can be sure that you and your staff will sleep better at night knowing that there is a real person dedicated to answering your questions and providing customer service at all hours of the day. Best of all, you won’t have to question whether your payroll app will be compatible the next time you update your phone.
In truth, smaller firms 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.
Plus, without the proper knowledge of payroll procedure and access to a sound payroll program, 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 can ease your mind. The Internal Revenue Service has reported that one out of every three employers has 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.
Premier Talent Partners can help you select the right payroll service–as well as coach you on switching to a new one. In addition to offering up the nitty gritty on payroll services, we will simplify the industry and empower you with the solid working knowledge to apply to your search for a provider.
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