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What the Right Payroll Company Can Do For You

Payroll companies are one of the more popular services available to companies of all sizes.  Essentially, this type of partner takes over management of all the payroll functions, including providing an easy way to calculate wages and salaries for each of your employees.  Services of this type also take on the tasks of calculating taxes, withholding the right amounts and even making sure the money is sent on to the right tax agency.  Choosing to use a payroll provider instead of managing the process in house offers other benefits, some of which are directly related to the employees.

For business owners

Choosing to outsource the payroll can make a big difference to the bottom line.  Since there is no need to maintain full-time personnel to manage payroll functions, that helps to decrease company expenses.  Lower business expenses means more of the generated income is net profit, which is often the source that funds bonuses, commissions, and raises for employees.  Those savings also mean that the company can build more of a nest egg, which in turn means that employees can worry less about the company going out of business.

Since there is no in-house payroll team, that means the process of preparing the payroll is not slowed down by absenteeism or sickness.  There’s no need for another employee to take over and muddle through, while others try to cover his or her job responsibilities.  Outsource providers deal with that type of issue, and absorb the cost of making sure the weekly, biweekly, or monthly payroll is accurate and issued on time.  A bout of the flu going around the office does not mean anyone will be paid late.

Calculating and withholding taxes is a time consuming task, even for a small business

With a competent payroll service managing the job, all you have to do is make sure the money is on hand to pay the taxes.  The service prepares the forms and remits all the tax payments, including taxes withheld from employee wages and salary right along with the employer taxes.

Going with a service also means you always have access to the latest information regarding taxes and changes in payroll laws.  There’s no need to spend time and money making sure employees are up to date on these issues before they calculate a payroll, since the service is making sure their staff is constantly updated.

Employees often benefit from the use of a service simply because that typically means the option to enjoy direct deposit.  A competent service will ensure the payroll is calculated and the deposit is initiated in plenty of time for it to post to the employee’s checking or savings account without fail.  Many payroll service providers also offer online access to individual employee payroll accounts, allowing the employees to easily look up and even print data for tax purposes.

The right payroll service will take one concern off the shoulders of the business owner and make it possible to focus more on growing the company.  At the same time, the right service also makes life a lot easier for employees, since wages and salary are always received on time, taxes are calculated properly, and they can look at their payroll histories whenever they like.  Given that using a service is less expensive and also ensures access to fully qualified payroll professionals, looking into this option just makes sense.

Indie journalist Patrica H. Hugley frequently blogs about finances and payroll companies, this is one of her many great blogs – Enjoy!

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March 18, 2012 um 6:59 am
Miscellaneous Finance
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