Advantages of Getting Managed Payroll Services For Your Small Business
For a small business owner, it is imperative to know business consultants with the right expertise. The most favorite ones are usually outsourced for non-core functions and payroll processing is one of them. If you are looking for managed payroll services, you are moving in the right direction.
Payrolls may not be the main core function but it is the second most important expense for any business. Investments are the first one. Businessmen aren’t likely the experts. They are not proficient in delivering payroll service up to customer satisfaction. Therefore they tend to hire an in-house expert or outsource the payroll services.
For small businesses outsourced payroll services are a better option. Not only does it mean less expense but the payroll experts will be handling the payroll accounts wisely.
What are Managed Payroll Services?
Managed payroll means outsourcing the responsibility of managing the payrolls to a third-party source.
Managed payroll services are outsourced managing payroll processing. This means that a company will handle the labor and administrative tasks associated with payroll for you- instead of having to do it on your own or hiring someone.
In general managed payroll services;
- Save time
- Save money by reducing taxes
- Simplify life for small business owners who would otherwise be bogged down by all the repetitive tasks and so on.
What do Outsourced Payroll services do?
Outsourced payroll services have certain responsibilities like;
Payroll Tax and Deductions
Calculating payroll tax and deductions, including FICA (Federal Insurance Contributions Act), Medicare Tax, Federal Unemployment Tax.
Wages and Compensation
Processing employment taxes such as Wages & Compensation; Income Taxes; Social Security Benefits; and local income/occupational taxes where applicable.
Checks and Payments
Issuing checks for employees or issuing electronic payments to vendors on behalf of the company paying the managed payroll service provider.
Posting data into employer accounts with various taxing authorities such as federal withholding, state unemployment insurance premiums, social security benefits taxation, etc.
Maintaining employee records that are essential to running a managed payroll services organization which includes wage computations for current employees.
Outsourced payroll management is responsible to ensure their small business clients manage all payroll activities.
How much Average Payroll Services Cost?
Small businesses have a limited budget.
Therefore hiring a full-time expert is not in their favor. Managed payroll services providers are usually paid on an annual basis or as a percentage of the company’s gross revenue (depending on the managed payroll service provider).
Benefits of Managed Payroll Services Small businesses can Enjoy
If you’re a small business owner, payroll can be one of the most stressful parts of running your company. This is why managed payroll services are so beneficial.
Whether it’s just to get some relief from the stress or to save money and time on payroll processing, managed payroll services are worth considering.
Eliminates the need to manage timesheets, generate paychecks and calculate benefits. Managed payroll services help to manage time by using the latest software such as accounting portals. Doing the work online saves your time and money.
Especially if the HR department isn’t spending a lot of time on maintaining payroll systems, your business will save time for more important activities. Instead of manual data entries and double-checking the numbers, the outsourced payroll management will focus on saving time and applying strategic resources to increase productivity to optimize the workforce.
If managed payroll services are outsourced to a third-party provider, it will help you save the costs of payroll management which includes wages, payroll taxes as well as benefits such as medical and dental insurance.
Outsourced managed payroll services can help your business to grow by doing more with less money. This is one of the main benefits that a small business can enjoy within a limited budget.
Managed payroll services provide more efficient cost management with reduced or eliminated overtime costs.
No Work Hassle
Often includes a variety of tax reporting paperwork that is managed by the managed payroll service provider on behalf of the company paying them (such as forms W-A). So you can focus your energy elsewhere in managing your small business.
With managed payroll services, these tasks are done efficiently, accurately, and without needing any additional input from you. This means less hassle when filing taxes come April 15th! And because all data is stored electronically; there’s no chance for human error either.
Compliance Risk Management
With the right partner, the small business can handle the payroll and tax regulations. Outsourced payroll management has access to experts in legislation, government regulations, privacy, security, and much more.
They value small business clients. Also, they provide efficient, secure, and accurate payroll services to ensure all regulations are met.
Even with outsourced payroll services, small businesses will have control of their activities. Some fear that outsourcing the services implies a loss of control. It’s just a myth.
With the help of managed payroll services, you can choose which tasks and payroll functions you want to hand over and which ones you prefer to keep in-house. Outsourcing is flexible. You can provide the details about what you expect from the payroll service management.
This way you can better manage your tasks and time-consuming tasks are better taken care of.
Enhanced Work Productivity
Managed payroll services can be a boon to small business owners who have employees working remotely. They offer some of the best talents for remote work: knowledgeable professionals with years of experience in providing outsourced solutions that include employee management and payroll processing support.
Having an outside provider handle your company’s HR functions allows you to focus on the primary tasks and distribute the work more efficiently.
Managed payroll providers offer a wide array of services and flexible solutions to suit the needs of small business owners.
Payroll services must get the numbers right or the company could face stiff penalties from the government and suffer costly damages. An outsourced managed payroll provider can help you avoid those mistakes by providing a certified accountant who is knowledgeable about all of the rules, regulations, and tax codes that govern managed payroll services.
Outsourcing your payroll management to an experienced managed service provider offers accurate results at low costs.
Without a doubt, a payroll service management solution is an excellent way for small business owners to provide professional and cost-effective managed payroll services. My Count Solutions is one of the local payroll service providers that look out for their client’s businesses to help them succeed in the future.
Initiate contact with our team to learn how your small business can save an extra penny.