Outsourcing Payroll How, Why, Costs and More

To make your life significantly easier, you’ll want to use a payroll platform that can integrate seamlessly with your existing HR tech stack. Ideally, there will be an API option, too, so that you can customize your integrations. One of the biggest issues for payroll clients is hidden fees and “sneaky” costs. As well as being dishonest, these costs can wreak havoc with your hiring budget. As discussed, non-compliance — whether accidental or otherwise — can land your business in hot water.

1. The base rate is $40 per month, and then you pay $6 per person per month, so, for a company with 100 employees, OnPay would cost $640 per month.
2. Outsourcing, on the other hand, means handing over your entire payroll process to another company.
3. However, I only had to click a box and click “submit” to send an invite to my employee.
4. To help keep up with your growing business, you might consider outsourcing payroll to shift some responsibilities off your plate, allowing you to spend time on other crucial business tasks.
5. By outsourcing tasks, you can ensure your payroll is getting the attention to detail it requires to run smoothly.

I was impressed with OnPay’s customer service, particularly over the phone. While it took longer to hear back through the chat function, I was able to reach someone in just a few minutes over the phone. The OnPay representative provided a clear answer to my question and asked if I needed anything else. I felt like the company was genuinely interested in helping me rather than selling anything.

Best for Professional Employer Organization (PEO) Services

If you can securities and exchange commission definition squeeze some “good to have” features as well, do so but don’t overextend yourself. The payroll software you use should integrate with QuickBooks or whichever accounting software you use to keep an accurate record of payroll history in the event of an audit. Payroll software should also integrate with benefits administration software for accurate deductions and with time tracking software.

What Are Payroll Services?

A PEO service may come with a higher price tag than basic payroll outsourcing options. However, this cost reflects the wide-ranging HR services it offers. Many payroll providers also offer services that go beyond payroll processing and tax filing. For example, Roll by ADP includes new hire reporting and assistance with challenging situations, like wage garnishments. Patriot Software can help you set up a 401(k) retirement savings plan for your employees. Users say the software’s customer support representatives are friendly but sometimes slow to respond.

When you choose the right HR solution, outsourcing can be a cost-effective option. You gain access to skills and expertise without the overhead that comes with additional staff. For example, you’ll save money on computers, office space, benefits, and more. When you outsource to a global payroll specialist, you also avoid other potential costs due to noncompliance, such as miscalculated overtime or an incorrectly submitted tax form.

More efficient processes

If you choose this how to create a flawless filing system on your computer option, ensure your contract with the accountant is clear to avoid potential employee misclassification issues. When selecting an outsourced payroll provider, consider your budget, expansion goals, and payroll team’s bandwidth. Sometimes, the consequences of a payroll error are more severe than having an employee complain about a portion of money missing from their paycheck. Inaccurately filed federal payroll taxes may result in penalties and legal issues with local government agencies.

Small businesses have a wider variety of outsourcing payroll options available when compared to that of medium to large-sized businesses. With a small business, you could either hire an accountant or make use of local payroll firms or online payroll SaaS companies. If your business is growing, you need a payroll provider that can grow with you. By outsourcing tasks, you can ensure your payroll is getting the attention to detail it requires to run smoothly.

Many small businesses can benefit from outsourcing payroll, by using payroll software services or other solutions. This can help the business save both time and money as well as stay in compliance. Today’s payroll software solutions can make it easy to manage employee payroll. Many of these services offer a variety of additional services accumulated deficit vs. retained earnings including benefits administration and HR services, usually for an additional cost. The basic service can be inexpensive compared to the time it would take to do it yourself. Before you approach any professional payroll service providers, make sure you’re aware of the payroll requirements needed to successfully and legally perform payroll.