Why Pay Others For The Work You Do?
Before you spend any more money on your payroll service, take a look at how much money you could save bringing your payroll in-house.
No matter how big or small a business is hours upon hours can be spent managing the financial aspects of the company, including payroll. Payroll particularly can be very time consuming – there are so many aspects to consider: full-time hourly employees, part-time hourly employees, seasonal employees, salaried part-time employees and the list goes on and on. Let us not forget the vacation pay, bonuses, direct deposit, manual checks, and then there are taxes! No wonder utilizing a payroll service seems like such a great idea.
Stop for one moment and look at how much money and time you spend using that payroll service. Most often, you keep all of the payroll records on-site, the daily postings, the hours each employee works, vacation and sick pay information, and much more. All of that information is entered, recorded and most likely the data is generated into a report. These reports are then sent to the payroll service so you can have checks generated for pay day or direct deposits set up. Every time a new employee is hired, or leaves the company or their life circumstances change and they need to adjust their work schedule, you handle the information. That takes a lot of time and effort – your time. Once all of the data is entered, the check writing or direct deposit is the easy part.
Out of curiosity, I recently looked online to see what the definition of a payroll service was; the US Census website defined a payroll service as; Payroll service involves obtaining information on hours worked, pay rates, and other payroll-related data from client organizations on their workers and using that information to generate paychecks, payroll reports, and payroll tax filings. The operative word here is: obtain.
Before a payroll service can help you, the business needs to collect all of the information to send on to the payroll service, that is your time. It seems as though you have already done the hard work, just think if you had the right payroll software to take that data and process it yourself. Many businesses can save money and add that profit to their bottom line by processing their payroll in-house.
Here are some things to look for when shopping around for payroll software:
· Flexibility: In order for you to benefit from using payroll software, you will want a system that can be flexible to handle your specific needs. There are many payroll software programs available in the market today, you can find standalone programs that you can use with your general ledger or if possible, payroll software that fully integrates with an accounting system is even better.
· Versatile, Easy Setup: The purpose of payroll software is to save you processing time and money. Look for a program that has tools and wizards to help you easily set up your payroll software the right way. Software that gives you the ability to modify the reports you need and gives you the information you require.
· Options. Options. Options. Choose payroll software that is capable of handling many aspects of payroll reporting, not just collecting information to print a check. For instance; software that can handle piecework pay, seasonal pay, shift differential pay, hourly pay or even a combination of any of the aforementioned payment methods can save you significant time by doing the correct calculations for you.
· Automated W-2, State and Federal Forms: Processing time and money can be saved if your payroll software offers automated W-2 and State and Federal forms with e-filing. Data from your payroll is automatically added into your required forms for fast e-filing or printing on plain paper. If possible, choose a full-service W-2 and 1099 fulfillment option as an added resource.
· Technology: When choosing your payroll software; look for software that is built with the newest technology like a Microsoft.NET framework-based application. By doing so, it ensures the data security and reliability crucial for payroll data.
· Experience, Expertise and Customer Care: Take care to look for a payroll software company that is experienced in development and has the expertise necessary to create software that is easy to use and can handle your needs as you grow. Finally, take a look at the support and customer care the product offers. Is there personal attention offered? When you call for telephone support, do you actually talk to a person and not a recorded auto attendant?
There are many payroll programs available to choose from. Some have all of the above features, others only a few. Do some shopping around, and choose your payroll software carefully, ensuring your product does all your business needs it to do.
If you still feel that using a payroll service is the best solution for your company, make sure you choose a partner who brings added value to your business and does the bulk of the data collection and processing to minimize the time you spend on payroll!
When all is said and done, remember, the purpose of processing your payroll in-house, and purchasing payroll software is to utilize the wide range of additional tools that can help your company increase efficiency, reduce costs, access the information you need at your fingertips, and most importantly get your employees paid on time!