No matter how often they do it and how efficient their system is, every HR professional still finds the process of processing payroll nothing short of a major headache. Pile up penalties and taxes on this already tiring task, and you got one nuisance of a task at hand.
Good news is there is an alternative – outsourcing to an HR firm that specialises in payroll. Let’s take a look at the benefits firms can reap by going the outsourcing route:
1. Outsourcing saves time:
Time is always of the essence and anything that takes up more than their fair share needs reconsideration. Processing payroll demands attention to minute details, which in turn requires time. Data keeps piling up from the beginning of each month. This data then needs to be input and double checked for any sort of errors. For small businesses, this takes time off from the more important tasks, whereas for large companies, it takes loads of time as their employee number is also high. Ultimately, all this time and attention devoted to payrolls divert the attention from the real task of providing first-class services to the customers. Outsourcing this function provides the company a lot more time to focus on the core business.
2. Outsourcing is cost effective:
Creating, managing and then paying an entirely different department for the purpose of managing payrolls might not be so difficult for large companies; for small ones, however, it could be a veritable financial sink. Furthermore, the payroll department will barely make a dent in the business’s account as compared to all the cost the software, training, maintenance, printers, distributing payslips, and other activities related to payroll will bring. Outsourcing will not only save a company from this entire ordeal but will also save them considerable costs.
3. Outsourcing prevents dealing with technology:
Software for payroll keeps on upgrading each passing day, with so many changes and new technology in the market, companies have to stay up to date with them which this brings a whole lot of trouble with it. What’s worse is that using a wrong tax table might even result in a penalty. With outsourcing, companies do not have to deal with any of the troubles that technologies often bring with it.
4. Outsourcing is convenient and functional:
With outsourcing, all that needs to be done is the passing of the data from the company to the HR representatives and then they can proceed with the issuing of checks, checking and double checking the keying of data and then dealing with any kinds of complaints made by the employees after the payroll.
5. Better Security:
Processing payroll is not only complicated but also a very potentially risky procedure when it comes to data handling. The employee database contains valuable and personal information about the employees and a little tampering by the wrong person can result in valuable information in the wrong hands. In-house payroll processing poses a risk of identity theft, fund embezzlement and various other sorts of cyber crimes. Outsourcing firms, however, are trained to deal with these kinds of breaches and their software have warning systems and alerts that help them counter issues efficiently and effectively.