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Are Payroll Services Worth the Expense?

Payroll processing is an unavoidable part of managing a workforce. Whether you have a small or large company, it is essential to have the paychecks ready to go on payday. Even though it might seem simple to hand out these checks to employees, there is a lot of work that goes into payroll processing. So, you might consider the benefits of hiring a team to help with payroll services.

How Much Should You Pay for Payroll Services?

The monthly cost for these services will vary depending on the size of your company and the complexity of the payroll system. It’s hard to put a set price on payroll processing without understanding the specific needs of your business. So, the best thing that you can do is talk to a payroll processing team, like Easier Accounting, to learn about the services that will suit the needs of your company.

Even though outsourced payroll services might seem expensive, these costs are typically cheaper than the prices that would be paid for an employee to manage the tasks. When you are paying an employee to handle payroll processing, you need to cover their salary as well as the overhead expenses for office space, benefits, and more. The costs can add up!

Instead of jumping to the conclusion that you need another employee to handle payroll processing, consider the benefits of using an outsourced team. These payroll services can be catered to match the needs of your company. You can rest assured to know that you will receive top-notch services at affordable prices.

What is Covered By a Payroll Processing Company?

When you choose payroll processing for your small business, the payroll company handles more than just printing the checks. Generally, this company should oversee all of the behind-the-scenes details that affect the payment calculations, taxes and more.

These are the most common offerings in payroll services:

  • Schedule: It is important that the schedules are managed so that employees always have a paycheck in hand on the right day. Missing the scheduled payroll can have horrible consequences on employee morale and company culture. Your employees come to work each day trusting that they will receive a paycheck on the right day of the month. Any delays with payroll availability will result in a domino effect that has a negative impact on the productivity of the workforce.
  • Pay Calculations: Did you know that there are different payment rates that need to be provided based on the number of hours that are worked by an employee? Not only do you need to know the person’s wage and the hours that are logged each week, but you also need to be aware of the adjustments that are required for time and a half, double pay, holiday pay. There are federal and state laws that manage these payments. Your payroll service will help you stay ahead of the legal requirements for your workforce.
  • Benefits Deductions: Most companies have calculations for benefits deductions and human resources services. For example, if health insurance is provided as a benefit and the employee needs to pay for the monthly premium, then that amount will need to be deducted from their check. Additionally, the money that is deducted, along with the employer contribution, needs to be sent to the insurance company to ensure uninterrupted insurance coverage.
  • Tax Administration: Taxes also need to be calculated for every paycheck. It is important that you keep up with any tax rate changes each year. There are several categories of employment and unemployment taxes that need to be deducted, and your payroll service can help you stay current with these rates.
  • Federal and State Laws: With the tax calculations, it is essential that both federal and state laws are factored into the withholdings. An experienced financial company will help you identify the laws that need to be managed for your business location.
  • Tax Paperwork and Filing: In addition to the withholdings for taxes, there are other forms and paperwork that need to be filled out and filed. For example, employment taxes need to be paid on a regular basis, and this schedule changes based on the size of your company. Employees also need to receive their W2 forms by January 31st each year.
  • Other Deductions: Sometimes there are additional deductions that need to be calculated for individual circumstances. Garnishments might be required and shouldn’t be overlooked if you have received a garnishment request for an employee.
  • Checks and Deposits: The final part of payroll processing is printing the checks and issuing direct deposit transfers as needed. This step is the time when employees receive the money that they worked so hard for. Your payroll processing service will take care of these details so that you don’t have to worry about the bank transfers or paperwork.

As you can see, there is a lot of information that needs to be addressed before the paychecks are cut. It is important that you have an experienced team to help with the process. Creating a good system will improve accuracy and help you avoid fines and fees for improper payroll calculation. If you need assistance, then you can talk to our team at Easier Accounting for more information about the services that we provide.

Financial Consequences of Skipping Payroll Services

As mentioned above, outsourced payroll processing is often cheaper compared to hiring an employee to manage these tasks. But, did you know that there are other potential financial issues that you might be facing if you don’t have a good payroll processing company?

One of the biggest concerns is the potential for fees or fines based on improper payroll calculations. You are required by law to provide accurate payments to employees based on their agreed wages and the number of hours that are worked. Failing to abide by these legal requirements could result in harsh consequences for your company.

Hiring a payroll processing service is one of the best things that you can do to avoid these potential issues. Our company will evaluate your situation and offer recommendations based on the services that suit the needs of your workforce. We ensure that everything will be handled with the highest level of care and support that is needed.

Free Up Your Time for Other Business Responsibilities

Another benefit of outsourced payroll services is that you don’t need to waste your valuable time on busy work. Even if you have the knowledge and ability to manage payroll processing, there is an opportunity cost to the hours that are spent on the work. Just because you are capable of handling the work, doesn’t mean that you need to manage the task by yourself. You are probably capable of scrubbing a toilet, but you choose to hire a custodial staff to help instead. In the same way, you might be capable of calculating payroll, but you should let an accounting team handle the work.

Freeing up your time is one of the best things that you can do to ensure the future success of your company. You shouldn’t get caught in the busy work that distracts you from other important tasks that need to be addressed for your company. When you outsource tasks like bookkeeping and payroll processing, then you can focus your time on more important things like business development, customer satisfaction, product ordering, employee management and more.

These other responsibilities make up the foundation of your company. You need to use your time wisely by making sure that you are spending your days on the services that will be best for the needs of your company.

Choosing a Payroll Processing Company

Now that you can see the benefits of payroll services, it is time to choose a payroll processing company. Don’t limit yourself to local providers when there are so many great resources available online. The internet has made the business world smaller, giving you access to professionals located in any part of the country.

The best thing that you can do is choose a company that offers personalized services. There is no reason for you to stick with generic payroll processing when there are quality services that can be catered to the needs of your company. You can work with an experienced team to identify the right system that will be good for your workforce.

If you need payroll processing services, then you can contact our team to learn more about the customized services that we provide. Not only are we here to help with your payroll processing, but we also offer the support that you need for bookkeeping, tax administration, tax filing, and more. You are invited to contact us any time when you are ready for more information.

At Easier Accounting, we specialize in payroll and bookkeeping services for small businesses. Our company has many years of experience in the industry, offering the best solutions for business owners and entrepreneurs. You might be surprised to see how much of a difference it can make when you choose to hire an experienced payroll and accounting team. Call today for custom recommendations that match the needs of your company: (888) 620-0770