How Payroll Companies Work
“I love getting my paycheck late every week,” said no one – ever. No matter who you talk to, getting paid on time is a big deal, as is getting paid the right amount. The problem is that the payroll specialist at your small business is likely wearing more hats than they can count on one hand.
Let’s face it, payroll is time consuming, tedious and often complicated. Business owners who want to spend more time making money and less time mailing checks are turning to payroll companies for support. But before you jump right into hiring one, there are some things you should expect from any payroll company worth your money.
How Payroll Companies Work
An outsourced or third-party payroll company can bring you significant value in a number of ways. Between HR services, payroll tax forms and accounting prep, and the actual process of payroll, there are usually a suite of products to fill needs for any size business. Additionally, because they are staffed by dedicated payroll specialists, payroll companies are able to provide accuracy and efficiency that may be harder to come by with your own in-house financial staffing.
Payroll companies are able to provide a range of services from processing payroll, to running it using data that is accrued by your organization, or even providing an entire payroll ecosystem so that you don’t have to worry about anything regarding payroll processing – including paycheck distribution and tax filing.
Ultimately, the best payroll companies allow you to focus on your brand and grow your business without dealing with the stress of payroll minutiae.
Benefits of Using a Payroll Company
A great payroll company should provide exceptional customer service on-demand. After all, they are handling your hard-earned money and distributing it to your employees. With so many people relying on their actions, getting prompt responses is critical.
Similarly, they should provide consistent customer service from a personal account manager – someone that knows the payroll side of your business inside and out. This is important because payroll is a frequent high leverage event, and familiarity with its patterns and timing can make all the difference in quality. Go with a payroll company that gives you direct access to the person managing your account. Any company that promises less is not worth your time.
Anyone who has ever managed payroll knows that tracking hours worked, wages, paid time off, and tax withholdings can be painstaking and a source of many frustrations. Are you paying employees hourly or salary? Are they exempt or nonexempt? Is this a personal day, sick day, or vacation day? Is payroll processed weekly, biweekly, bimonthly? It’s a lot to keep track of and enough to make your head spin.
A professional payroll company will alleviate the confusion with easy-to-follow payroll schedules, in-depth records of employee contracts, and a dedicated team member to track each facet of payroll. Above all, payroll companies should issue accurate payments on time, every time, and provide quick resolution in the event an error occurs.
Often without us knowing, tax law change year-to-year. Keeping up with them can be a challenge. You should expect payroll companies to track and implement these changes for you. They should also let you know how these laws affect your business, and further, should proactively ensure that your business isn’t in jeopardy of violating any of the new tax codes.
Payroll companies also offer more in-depth tax services like year-round business and personal tax consultation. This can include year-end planning to maximize tax savings, QuickBooks setup and training, tax return preparation, and more. If you are considering a payroll company that doesn’t offer these services, our advice is to look elsewhere. You want a payroll company that is versed not just in payroll processing, but tax filing and HR as well.
Why? The three are so integrated that it’s near impossible to offer superior service in one without being knowledgeable about the other two.
The best payroll companies offer smart solutions for the digital business age. Enough with the snail-mail paper statements and hand-calculation of time cards. An outsourced payroll company should provide paperless automated payroll reporting, easy-to-use time and attendance technology, and seamless QuickBooks integration.
What Percentage of Companies Outsource Payroll?
Heading into 2022, it is estimated that roughly 47% of companies in the United States outsource their payroll. This is up slightly from a decade ago, but it is projected to steadily increase as remote work and payroll systems and technology grow.
Why Use a Payroll Company?
It is important to be included in the growing population of efficient businesses for many reasons. Primarily, payroll solutions are math problems that almost always show outsourcing to be more valuable. The long hours, stress, and susceptibility to fines for errors are not worth handling it internally.
Hire a Payroll Company in Phoenix, AZ
You need more time to work your business, less stress regarding finances, and an easy way to transition to a new payroll service. That’s where Pay-Tech comes in.
Our personal account managers take the time to know your business inside and out. They are well-versed in payroll so they can handle any question you throw at them. They also know the importance of processing each transaction with utmost accuracy – that’s why we have so many raving fans! If you are looking to take your organization to the next level with better payroll services, contact us today.