Employee payroll records are the records of all payments that an employer makes to an…
Manage Payroll In The Most Efficient Way
Outsourcing payroll management will keep your company running efficiently and ensure that employees are paid accurately and on schedule. Learning what a payroll outsourcing service entails helps to ensure you’re ready to make the transition as harmless as possible for your company.
In a 2019 survey, 12% of respondents said they entirely outsource their payroll management system, up from 8% in 2015.
- Instead of wasting hours every pay cycle on payroll management system, HR teams can focus on more strategic goals through expatriate payroll management.
- Outsourcing payroll management to a specialized service provider can reduce your exposure to legal and regulatory issues.
- Payroll outsourcing costs save your company money because you won’t have to worry about maintaining cloud security for your payroll system or managing paperwork.
Guideline For Choosing Managed Payroll Services
- Determine Payroll Needs: The key goal at this point is to figure out what services you really need to manage payroll. In doing so, you simply pay for what adds value to your organization.
- Determine Timeline: Companies that already outsource payroll management system to another provider must schedule a transfer at the right time to ensure a smooth transition.
- Necessary Documentation: For outsourcing payroll management, you’ll need to gather papers such recent quarterly payroll reports, company account information, employee W4 information, and year-to-date (YTD) paycheck totals for all staff.
- Onboarding Process: You’ll be presented to your new Connected Service Representative once you’ve been onboarded and acquainted with managed payroll services. Your CSR will be your go-to person for all of your payroll requirements.
- Current Payroll Maintenance: When it comes to taxes or other payroll outsourcing costs, having a direct connection to a payroll professional who is familiar with your firm is invaluable.
Estimated Cost Payroll Management
The cost of payroll management can vary greatly depending on the size of the business, the complexity of the payroll, the chosen method for payroll processing, and the geographic location(s) of the company and its employees. Here are some factors that might influence the cost:
- In-House Payroll Management: If you decide to manage payroll in-house, your costs will include the salary of the payroll staff, the cost of payroll software (if you choose to use one), and ongoing training for staff. In September 2021, payroll software can range from $10/month for very small businesses to $200/month or more for larger ones. Full-time payroll staff salary can range from $30,000 to $60,000/year or more depending on their level of experience and your location.
- Outsourced Payroll Services: If you decide to outsource payroll, the cost will depend on the size of your payroll and the specific services you need. Basic services (calculating payroll and tax obligations for each employee) might start at around $50/month for a small business. More comprehensive services, such as tax filing or direct deposit, will cost more. Some providers charge per pay period, while others charge per employee. The cost can range from $20 to $200 per pay period or $2 to $15 per employee.
- Hybrid Payroll Management: Some businesses choose a hybrid approach, managing some payroll tasks in-house and outsourcing others. The cost will depend on the specific mix of services you choose.
- Additional Costs: Don’t forget to factor in the cost of additional services or features, such as year-end tax services, integration with other systems, or access to human resources tools.
Tax Compliance and Payroll Management
Tax compliance is a significant part of payroll management. Both employers and employees have tax obligations that must be met, and it’s the employer’s responsibility to ensure that these obligations are accurately calculate and fulfill. Here’s a closer look at how tax compliance and payroll management intersect:
- Employee Withholding: As an employer, you’re require to withhold certain taxes from your employees’ paychecks. This typically includes federal income tax (and possibly state and local income taxes, depending on where your employees are located), as well as Social Security and Medicare taxes. The amounts withhold must be accurately calculate base on each employee’s earnings and the information they provide on their W-4 form.
- Employer Contributions: In addition to withholding taxes from employees’ wages, employers are also responsible for paying their own portion of Social Security and Medicare taxes. Some states also require employers to pay unemployment tax.
- Reporting and Remitting: The taxes that are withheld from employees’ paychecks, along with the employer’s own contributions, must be reported to the appropriate tax authorities, usually on a quarterly basis.
- Year-End Forms: At the end of the year, employers are require to provide each employee with a W-2 form that summarizes their earnings and the taxes that were withhold. Employers must also file a copy of each W-2 form with the Social Security Administration.
8 Questions To Ask The Vendor
- Does the payroll outsourcing service include tax payments and compliance?
- Is it possible to keep track of employee time?
- Are the managed payroll services scalable as your company and demands expand?
- How easy is it to get help?
- What is the payroll outsourcing cost scheme?
- How difficult is the payroll management system to put in place?
- How securely do they manage payroll?
- How updated is their payroll management system?
A company with more than one employee needs to have a complete payroll management system for effective expatriate payroll management. The major purpose of our managed payroll services is to facilitate a firm in making timely wage and salary payments to its employees. Other important details, such as taxable income, unemployment tax, and state pensions, are also handled by us.