Global payroll is one of the most complex processes a company can undertake. It involves many stakeholders, many countries, many currencies, and the list goes on. Companies that go through global payroll frequently are spending too much time and resources on this process because they’re not utilizing an end-to-end payroll processing solution such as ours.
Outsourcing payroll processing may look like an expense at first, but it actually reduces your costs by preventing costly mistakes and saving you precious time and effort.
Outsourcing payroll processing may look like an expense at first, but it actually reduces your costs by preventing costly mistakes and saving you precious time and effort. Think about how much time you currently spend on payroll software. You’re probably always wondering if your calculations are correct. Instead of being able to focus on your business, you spend hours every week making sure that everything is right—and then more time correcting errors if something does go wrong. That’s a lot of lost time that could be spent working toward your company’s goals.
A professional services provider can take all the worry out of payroll processing by ensuring that payroll is completed accurately and in full compliance with regulations—making sure your employees get paid on time, every time. Plus they can help handle other responsibilities like:
• Tax preparation and reporting
• Direct deposit for employees
Payroll outsourcing is the practice of hiring a third party to process your employee payroll.
The practice of hiring a third party to process your employee payroll is called payroll outsourcing. Payroll outsourcing is not the same thing as implementing payroll management software (though some vendors offer both). Payroll software is a tool that helps you manage your own payroll; it’s offered by companies like Sage and QuickBooks, while ADP, MYOB and others may offer both types of service.
Payroll outsourcing can take two forms: you can outsource the entire process, or just parts of it. You could outsource wage calculations, or employee tax deductions, or leave the whole thing up to a third-party provider.
You might also hear people use terms like “managed services” when discussing payroll outsourcing. Basically, this means that they’re referring to an outsourced service that isn’t full-service: in other words, where you only outsource certain parts of your payroll process rather than giving over complete control to a third party.
Payroll outsourcing typically involves the following services when you outsource to a global provider:
Payroll processing outsourcing typically involves the following services when you outsource to a global provider:
• Managing employee data – You hand over complete control of your employee payroll data to your third-party provider. Your provider has full access to every piece of information related to each one of your employees, as well as all aspects of their payroll management.
• Calculating pay and benefits – Calculating pay, benefits and other deductions is another task that’s handled by the third-party provider, who’ll provide you with accurate reports.
• Handling payroll taxes – Your outsourced payroll service also handles all regulatory compliance issues, including tax filings and other reporting requirements. All necessary paperwork and documentation will be produced by your third-party provider.
• Preparing paychecks – Payroll providers ensure that an employee’s net amount is correctly deposited in his or her bank account on time. This includes making sure direct deposits are made for each employee and dealing with any bounced checks or other problems that may arise.
Outsourced payroll software simplifies the process by centralizing all tasks that need to be done.
Outsourced payroll software can make payroll processing simpler by creating a central place to manage all the information that needs to be handled.
The basic payroll software (and most advanced) is designed with three main roles in mind: employee, administrator, and supervisor. Employees use the system to access pay statements, tax statements, and other records they may need regarding their employment. Administrators enter data into the system so that it’s available for employees as well as managers and supervisors in the company who might need it for reporting purposes. Managers and supervisors use this same data to look at trends or run reports on their departments, which often includes looking at time tracking information from time clocks or timesheets submitted through the software. They can also access individual employee files in order to approve time-off requests or submit performance reviews. This centralized system makes it easy for every person involved in payroll processing—from management down to IT—to find what they’re looking for without navigating multiple programs or systems that don’t talk with each other seamlessly.
Top benefits of a payroll outsourcing solution are as follows:
• *Accuracy of compliance*. Payroll processing is a complex field in which one small mistake can result in huge penalties or lawsuits. A good outsourced payroll processing system will help you ensure that everything is done correctly, keeping your business compliant and safe from potential liabilities.
• *Reduce workload for HR*. Human resources professionals are usually the ones responsible for payroll, but it’s not their main job. With an outsourcing solution, the burden of payroll processing is taken off of them and put onto a company that specializes in this area specifically. This frees up their valuable time to handle other projects or responsibilities instead.