If you’re in charge of a company and thinking about what you can outsource that would be efficient, and an overall benefit to your company, payroll outsourcing could be your answer. All it means is that you hire another company to handle your payroll processing. There are some details to it, however, that will help you figure out whether it’s really for you and your business.
How Payroll Outsourcing Works
Different companies you hire may have solutions that vary slightly, however it is mostly the same types of processes. The packages offered vary by number of employees, being small business (1-20) medium business (21-100) or large business (101+). Some companies may offer other solutions as well.
- You can have your outsourced company fully manage your payroll process, so you can have a completely efficient payroll while you’re able to be hands off with it and hands on with your craft or other aspects of your business that you do best. You will still have a say in certain options, such as input method and documentation, but it is put in place to allow you to not worry about the hassle of handling the payroll task.
- You can also opt for a service that allows you to have full control over your own payroll, but you receive the help you need, when you need it, from experts. There are companies that offer this package that will offer you full training that is continuous in order to keep your skills fresh and new, and help with everything you need, and only the things you need. If you’re new to outsourcing your payroll, this may be the method you should choose until you find a company you really trust to handle your sensitive finances.
- You can also find a package that will allow you to integrate your payroll with your HR system, which will save a lot of time and effort, minimizing your record-keeping practices by wrapping them all into one package.
- One more (but not the last) package you’ll be able to find is one where the company sets up a network through your bank with the separate accounts and PINs, and all you have to do is send the company the net amounts that you’ll need paid to which account. This works well if you want to keep an eye on the actual money but want as little as possible to do with the process. The company will have to work directly with you, and you’ll know which person in the company is handling the finances at the time, giving you an extra sense of accountability and security.
There are other packages that are offered, and they all work slightly differently in order to provide you (the business owner) the most comfort, security, and convenience possible.
So, Why Should I Outsource Payroll?
You should outsource your payroll if you find yourself not having time to do everything you wish you could do. You’ll need to make a list of things you’d like to not do and ask yourself (for each) “does it need to be done?” and “could someone else do the task justice?” Payroll passes the test of those two important questions. Benefits of outsourcing payroll include:
- Getting a task you don’t want to do off of your hands
- Putting said task in the hands of experts
- Giving yourself the time to make your business more profitable
- Choosing a package that offers you security and comfort, so you don’t have to feel entrusting of another company handling your funds
How Does Pricing Work for Outsourced Payroll?
Prices vary with packages, but it’s easy to find affordable prices that cost between $1 and $3 per employee. With prices like that, it’s not difficult to have a flexible package. Maybe you’ll want to start out only using the payroll service for a certain department, and then switch it over to the rest of the departments and employees later once you feel fully comfortable with it and can afford it. With the types of pricing and packages that payroll-outsourcing companies have begun to incorporate, it’s easy to find a package that’s affordable and easy to implement. To get an exact quote, it’s best to simply contact a payroll outsourcing company such as Moore Pay that you think may be worth hiring, and letting them know your situation and asking for help figuring out the package and pricing that’s right for you. Now, you know how payroll outsourcing works, what benefits it can bring to you and your company, and how much it can cost you in the end. There are plenty of tasks you can outsource, but the majority of them don’t need to be outsourced, because you can add them to the workload of one of your employees that you’re training for leadership, or you can go without the task altogether. Payroll doesn’t fit in those categories, and it would benefit you greatly to look into outsourcing that one.