Streamline your business operations and efficiency with our payroll outsourcing services.
What is payroll outsourcing and how can it help my organization? Concurrent HRO provides this service to handle all aspects of payroll for your business. Some jobs this service can provide are calculatinge salaries, deducting applicable taxes, writing and distributing paychecks, and maintaining a detailed record of every pay period. This will provide a comprehensive payroll service solution to the organization
Why do companies choose payroll outsourcing? For small businesses, this is an excellent way to reduce the cost of hiring in-house personne. This service also saves time, eliminates the risk of hefty fines due to errors, and is more cost-effective than processing payroll in-house.
While you will have no problem finding a payroll outsourcing provider, not all of them deliver the same caliber of service. At Concurrent HRO, we have extensively trained employees who are knowledgeable about cutting-edge processing software while also providing high quality customer service.
How Does Payroll Outsourcing Work?
After choosing a payroll outsourcing provider, you’ll give your provider a payroll report. The provider then uses the details of the report to process your data. Included in the report are the number of employees, benefits policies, hours worked, overtime, and vacation, to name a few. The report also includes annual earnings of salary-paid employees and the hourly- paid rate for non-salary workers.
With the information entered into the computer system, the payroll outsourcing provider can begin processing your payroll. It will be at this point, the payroll outsourcing company takes over the responsibility of calculating, handling, and distributing paychecks.
Different Types Of Payroll Outsourcing Providers
Every company that provides payroll outsourcing services has a unique way of presenting their product. For instance, a payroll organization that offers a plethora of options will give your business many tools in making the overall business function run smoother and more secure. This provider also plays multiple roles in helping businesses succeed. These include:
- Local CPA and accounting services
- National bookkeeping
- Payroll software
You might be asking, “What is a PEO?” A professional employer organization enters into an agreement with a client to perform a portion of or all functions related to workers’ federal employment tax, withholding, reporting, and payment. Not all businesses that utilize a payroll outsourcing provider need a PEO. However, many do without realizing it. Considering that payroll and HR responsibilities often overlap, it often makes sense to choose a PEO that also handles payroll.
In-house Payroll Vs. Outsourcing
There are three notable advantages of payroll outsourcing. First, it frees up valuable employee time. In response, you’ll likely see workers exhibit signs of less stress and display a higher level of productivity in the workplace. Second, according to current payroll outsourcing statistics, using a provider is more cost effective and allows more time on the day-to-day activities of the organization . Finally, you can avoid significant fines due to in-house human error.
Are there risks of outsourcing payroll? Yes, which is why selecting a reputable outsourcing company is so critical. At Concurrent HRO you no longer have to worry about adhering to ever-changing payroll regulations – something difficult for most business owners to stay on top of. Our software will keep your information protected and secure, so you won’t have to worry about experiencing a data or security breach.
When looking at outsourcing payroll pros and cons, usually the pros outweigh the cons. If you find yourself spending a significant amount of time processing payrolls and checks, you should consider outsourcing your payroll. Small businesses benefit greatly when they allow PEO’s to process their organization’s payroll.
Benefits Of Outsourcing Payroll
Some of the previously addressed benefits of outsourcing payroll deserve a second mention. Outsourcing is an excellent way to redistribute internal responsibilities that ultimately strengthen your organization. Using Concurrent HRO’s services of a will yield your organization the following benefits.
- Free up employee time that is normally spent on calculating and processing payroll hours(allowing them to work quicker and efficiently)
- Save unnecessary costs
- Eliminate paper waste (Concurrent HRO stores payroll processes in the cloud)
- Extremely secure servers
- Dual-purpose payroll outsourcing (financial and HR services)
Risks Of Outsourcing Payroll
With superior outsourcing payroll services, operations usually run smoothly. While there are numerous benefits of outsourcing payroll, certain undesirable scenarios can occur.
When handing over the entire payroll process, you lose control. As long as you choose the right company, you’ll reap the many benefits of outsourcing payroll.
You don’t want to select the wrong company. Some providers make bold claims but fail to deliver. Do your own research to learn as much information as possible about a provider. Read online customer comments, visit industry-related review sites, and pay attention to the details.
There’s also the concern of handing employee information to a third party. To avoid this, read and understand every word of your contract before signing. When it comes to things to consider when outsourcing payroll, it’s better to be safe than sorry.
Don’t ignore these risks because you may end up facing significant loss.
When Should A Small Business Owner Consider Outsourcing Payroll?
If you are a small business owner considering payroll outsourcing, your’re company is most likely on the verge of, or currently experiencing tremendous growth. To receive optimal support, select a provider that offers financial and HR services.
Is payroll an accounting or HR function? Well, it’s both since the responsibilities overlap. This is why it often makes sense to hire a third party payroll processing organization. The IRS statistics show that roughly 40 percent of all small businesses still pay fines due to filling out forms incorrectly and submitting documents late.
If you’ve received a penalty for not paying payroll taxes or submitting required documents on time, that’s a clear indicator that you need to outsource. To determine if outsourcing payroll for your small business is the right decision, consider the following.
- Cost – Calculate what it would cost for you to handle payroll versus the price quoted by a trusted provider. If using a payroll outsourcing provider saves you money, that’s the way to go.
- Technology – Compare the prices and functionality of different software programs against what an outsourcing company offers. Most times,the provider has something faster, more efficient, and safer.
- Reputation – It is critical to work with a company that makes the security of your data its top priority, which is what Concurrent HRO will always do for your organization.
Here’s The Question: Should You Outsource Payroll Or Manage It Yourself?
The answer is: it depends. If you have the time to process payroll, do it yourself. However, you’ll also be responsible for filing taxes, meeting deadlines, making adjustments, and much more. If you need help or don’t have the budget to have an in-house payroll processor, choose a trusted payroll outsourcing provider. For professional payroll services, contact us at Concurrent HRO. We utilize cutting-edge software and have extensive industry experience.