Over the past few years, the COVID-19 pandemic forced businesses to close worldwide. In some of the hardest impacted areas, companies were forced to close several times due to evolving pandemic guidelines. Regardless of your geological location, the pandemic affected all businesses in some way or another. In particular, companies with less than 100 employees who previously didn’t require a full-time, in-house HR team felt the impacts of outdated payroll systems and processes.
Grappling with the impact of COVID-19, many SME business owners found themselves wondering, “what happens when payroll processes are mixed with unexpected business closures?” And while it may seem counterintuitive to modify business processes during uncertain times, there’s never been a better time to outsource payroll.
Today, we’ll look at how payroll outsourcing can help your business recover and grow in a post-pandemic world.
What is Payroll Outsourcing?
Payroll outsourcing is when a company hires an outside organization to manage various aspects of its daily payroll operations. Specifically, payroll companies supply tax, accounting, and legal support to businesses to ensure their employees collect their paychecks on time and without error while complying with local financial rules and regulations.
Outsourcing payroll allows your company to:
- Manage and minimize incidents
- Calculate, pay, and distribute payroll accordingly (i.e., manage direct deposit and frequency of pay)
- Manage benefits (such as commissions, overtime, vacation time, incentives, retirement plans, and other benefits included in employee compensation
- Manage timesheets, invoices, and payroll reports
- Manage benefits enrollment
- Enter and track employee data
- Focus your time and attention on the other essential areas of your business (such as productivity and growth)
- And much more
Outsourcing is the Key to Business Agility and Continuity
We live in an age of fast digital transformation. This transformation creates complex challenges that impact productivity, efficient compliance with new regulations, changes in organizational culture evolutions, and workforce structure. As businesses navigate the pandemic, they must adapt, and payroll outsourcing can help.
Outsourcing payroll processes plays a central role in securely navigating the complexities arising from the pandemic. But precisely what can payroll outsourcing bring to your businesses?
- Secured compliance: payroll regulations are constantly evolving, and companies need to remain agile during times of change. Regardless of the changes in regulations, payroll providers are dedicated to delivering accurate and on-time payroll – including all statutory declarations.
- Access to technology: technology changes frequently, and upgrading to the latest innovative payroll technologies is costly. Companies who outsource payroll gain access to the newest payroll technologies for a fraction of the cost.
- Shift focus to core functions: when you outsource your payroll, your HR teams can focus on high value-added tasks related to core business operations.
- Data security: Data privacy and payroll outsourcing are strictly linked. Payroll companies’ overall architecture and service offerings are designed to comply with the highest standards and market regulations requirements related to data privacy and security.
- Saves time: Payroll is a time-consuming operation. By taking this task off of your payroll department’s list of responsibilities, you are allowing them to focus on other critical business areas, such as developing financial strategies to strengthen the company’s competitive advantage and drive growth.
- Minimal mistakes: payroll professionals spend all of their time mastering the various aspects of payroll operations. Outsourcing to professionals who dedicate their time solely to payroll activities minimizes the risk of errors, missed deadlines, or late payroll tax filings.
Guaranteed compliance: payroll providers are trained to understand the latest labor codes and legislations. This knowledge and expertise ensure your organization will remain compliant.
Are you tired of spending all of your time, energy, and resources on your payroll? Do you want to be better prepared for the next potential disruption to your business operations? The experts at SOURCEitHR are ready to manage your payroll for a fraction of the cost it takes to manage your payroll department internally.
With years of experience and the latest innovative technologies, we take all of the hassles out of payroll so you and your employees can focus on what matters most! We’re also here to help you understand the various benefits of outsourcing payroll for your business.
Contact a member of our team to learn more.
Co-Founder & Managing Partner