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    0 Replies Latest reply on Aug 17, 2009 11:47 AM by DaljeetSidhu

    Outsource Payroll Administration and focus on your core

    DaljeetSidhu Wayfarer
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      Outsourcing particular business tasks can enable
      you to free up resources and energy to focus on your core competencies. Payroll
      is an important function and in all likelihood it makes sense to outsource
      payroll administration rather than hire resources in-house and dedicate them
      solely to the function. Payroll companies help you organize your payroll,
      adhere to policies and procedures, and get employees paid on time.

      To stay on top of your tax obligations is reason
      enough for your company to consider using a payroll provider. Payroll
      administration warrants attention to detail and even the smallest indiscretion
      can attract heavy penalties from the tax authority of your country. In the US,
      the IRS has a history of levying heavy fines on small businesses for even the
      smallest transgression. Recently released statistics show that one out of every
      three small businesses is penalized in some way for not complying with tax

      *Why should you outsource payroll
      If you company is large enough, you may choose to conduct
      payroll functions in-house but be prepared to hire at least a couple of
      employees dedicated to this function. You will also have to allocate resources
      to continuously train your payroll staff in use of accounting software and to
      keep up with the frequently shifting state and federal tax laws. Also if you
      are a growing company that is continuously adding new employees, teams and
      locations, managing payroll is going to be quite a challenge. Do you really
      want to get distracted from the core-functions of your business by
      administering payroll yourself?

      service providers are experts in what they do and have economies of scale since
      they administer payroll for many other companies. More than likely, they will
      deliver payroll services to your company cheaper and more efficiently that what
      you can do yourself.

      *What Services Do Payroll Companies
      Payroll companies provide various services. The
      following are the most common:
      · Calculating
      pay checks for each employee
      · Addressing
      tax obligations on a local, state, and federal level
      · Printing
      and delivering checks
      · Providing
      management reports
      · Tracking
      employee benefits information
      · Automatic
      check signatures
      · Providing
      direct deposit
      · Processing
      W-2 forms
      · Processing 401k
      and mutual fund plans
      · Addressing tax needs for your company and providing tax preparation

      How to choose a Payroll Service?
      Ask for quotes from several companies before making
      a final decision. An easy way to request quotes from multiple providers is to
      go to a B2B
      networking portal like TradeSeam
      . Keep the following in mind as you decide
      on the provider.

      · Can
      they provide accurate payroll service without any mistakes in employee's pay or
      providing tax information to the government? Ask for history of efficiency.
      · An
      occasional mistake is acceptable but how quickly can they correct it. If the
      payroll service provider is overstretched, they may not have the resources to
      quickly provide the remedy.
      · Is
      the payroll providers system and software compatible with your own operating
      systems? Would it be possible to transfer data to and from your business
      · Are
      the references flawless? Excellent customer service to business owners and its
      employees is important.
      · How many clients is the payroll provider serving? Large number of
      clients may indicate a successful service but attrition in the past few months
      may indicate deteriorating quality. Does the provider have adequate resources
      to serve your business?
      · Is the pricing competitive? Some companies may bait you with low basic
      fees and charge heavily for extras. Ask for an all inclusive package to compare

      Once you decide on a
      payroll provider, scrutinize the contract very carefully for any hidden fees or
      charges that may kick in after a few months of service.

      Check the first few pay
      checks very carefully for any mistakes. It is better to uncover the issues
      early enough before they get compounded and more difficult to fix.

      a payroll provider
      is an important decision for your business. It is tough
      to easily switch a payroll provider if you make the wrong decision. Make sure
      you adequately
      research all payroll service possibilities before making a final decision