Examine the potential cost savings of handling payroll in-house before renewing your contract with a third-party payroll provider.
It doesn’t matter how big or small a company is. Payroll and other financial tasks can take a significant amount of time. Particularly time-consuming is payroll processing, given the wide variety of workers who need to be accounted for (full-time, part-time, seasonal, salaried, etc.). What about taxes, sick leave, bonuses, direct deposit, paper checks, and vacation pay? That’s why it makes sense to use a payroll service.
Take a moment to calculate how much time and money you are wasting utilizing that payroll service. Payroll records consist of daily postings, employee hours worked, paid time off accrued, and other details. Information is input, stored, and most likely compiled into a report. The payroll service receives these reports and uses them to prepare paychecks or direct transfers for the employees. You take care of the data whenever a worker is added, removed, or has their schedule altered due to personal issues. Your time is required for such an undertaking. Writing checks or making direct deposits is a breeze when all the information has been entered.
The US Census website defines payroll service as “obtaining information on hours worked, pay rates, and other payroll-related data from client businesses on their workers and using that information to generate paychecks, payroll reports, and payroll tax filings.” “Get” is key here.
It will take some time for the company to gather everything needed to transmit to the payroll agency before they can assist. It appears that you have already done most of the work; now, imagine that you have access to the appropriate payroll software and can process this information on your own. If a company handles its payroll operations in-house, it can save money and put that gain directly into the bottom line.
While comparing different payroll programs, keep in mind the following:
Flexibility
Getting the most from payroll software requires a system that can be customized to match your business’s unique requirements. These days, you may choose from a wide variety of payroll software options, including both stand-alone applications that can be used with your general ledger and, ideally an automated payroll solution that is fully integrated with an accounting system.
Versatile Setup
Payroll software is designed to reduce the amount of time and money spent on processing payroll. Look for a package that comes with wizards and other tools to assist you in getting your payroll software set up properly. A system that lets you customize reports and pulls the relevant data whenever you need it.
It’s up to you, basically.
Choose payroll software that can do more than just collect data and issue checks. Software that can calculate several types of wages, such as those based on pieces worked, seasons worked, shifts worked, hours worked, or a mix of these can save a lot of time and effort.
W-2, State, and Federal Forms are Processed Automatically
Payroll software with electronic filing for federal and state forms, including the W-2, can save administrative costs and improve efficiency. Payroll information is pre-populated into the appropriate forms, making electronic filing and printing a breeze. Choose a W-2 and 1099 fulfillment firm that handles everything for you if at all possible.
Technology
When deciding on payroll software, it’s best to go with something that was recently developed using cutting-edge tools. One example would be a program that was written using the Microsoft.NET framework. This protects and verifies the trustworthiness of payroll information, which is of paramount importance.
Knowledge, Skill, and Concern for the Client
It’s important to find a payroll software business that knows what it’s doing and has the knowledge to build scalable, user-friendly software. Next, think about the product’s customer service and support. Will I receive individual attention? Is a real person on the other end of the phone when you dial for help, or do you get an automated system?