AUGUST 6, 2024
Outsourcing Payroll Services: Why it’s a Win-Win Choice
Payroll is one of the most important administrative tasks for a business like yours. Your employees rely on you for their livelihood, but calculating and managing payroll can be a time-consuming process. There are several different options for you when it comes to payroll management; one of the most popular is outsourcing payroll services to providers like Payroll Vault - Hampton Roads. Let’s look at how hiring a payroll outsourcing provider works, the benefits of outsourcing, and what to look for in a payroll outsourcing company.
The Payroll Outsourcing Process
Payroll outsourcing is the practice of hiring a third-party service provider to calculate the wages and salaries for your business. It’s a popular option for small businesses with limited budgets; business software marketplace provider G2 said in a May 2024 report that 61% of companies outsource their payroll services, while 50% of small businesses outsource their payroll services to either other businesses or individuals.
Outsourcing payroll services begins by selecting a suitable service provider. After you've chosen a reputable provider, provide them with all the necessary information to open an account, such as W-2 forms, state tax withholding forms, W-9 forms, I-9 forms, job applications, bank information for direct deposit services, medical insurance information, and retirement plan information. Once you’re set up with your service provider, track your employees’’ work hours as needed and provide the info to the payroll service, as well as any payroll-related additions or withholdings, such as bonuses or garnishments. Your service provider will calculate each employee’s pay and tax deductions and submit the payroll to you for final approval before issuing payments. Depending on the provider you choose, they may provide your employees with payroll options, such as direct deposit or physical checks.
Payroll Outsourcing Benefits
Outsourcing payroll services offers several perks to business owners like you:
- Freeing up time for you and your staff so you can concentrate on business operations and customer satisfaction.
- Saving you the expense of hiring additional staff or buying expensive payroll software, which is often more expensive than hiring a third-party provider like Payroll Vault - Hampton Roads.
- Ensuring accuracy of payroll calculations and compliance with payroll laws and regulations, thanks to putting it in the hands of professional payroll managers and accountants.
- Enhancing your payroll security through the payroll service provider’s security systems and programs, which are designed to safeguard sensitive information from unauthorized access.
- Avoiding over-reliance on one individual for payroll management, instead employing a payroll management team, reducing the risk of delays with payroll processing due to absences or staff turnover.
- Providing flexibility with payroll options, such as offering direct deposit, pay cards, or personal checks, allowing your employees to get the service that suits their needs.
Payroll Provider Qualities
It’s important to find a service provider that’s a good fit for your business. When you go shopping for a payroll provider, here are some qualities to look for:
- Comprehensive services – Make sure the provider can handle all your payroll needs. Payroll Vault - Hampton Roads, for example, offers a boutique-style service that’s customized to each client’s payroll requirements.
- Reputation – Check the provider’s customer reviews history to see if they’re reputable. Payroll Vault has been in business since 2007 and has the expertise that comes with experience.
- Ease of use – Make sure the provider’s system is easy for you and your employees to use. Payroll Vault - Hampton Roads prides itself on customer satisfaction and customizes your service in as many ways as possible, from payment methods to employee self-service options to payroll reports.
- Support – Your provider should be there with answers whenever you have questions or concerns. Payroll Vault’s team is dedicated to staying in touch and communicating with you promptly and reliably.
- Added services – Payroll providers may offer services beyond basic payroll processing and tax services that can benefit your business. Payroll Vault - Hampton Roads not only provides payroll solutions, but also human resources solutions, from background checks to policy resources to employee handbook tools.
Ease Your Administrative Burden with Payroll Vault - Hampton Roads
Our payroll and HR experts are ready to offer you payroll and HR outsourcing solutions to help your business grow and prosper. Contact Payroll Vault - Hampton Roads at (757) 536-1046 or find your nearest Payroll Vault location and come in to learn more about what Payroll Vault can do for you.
