Simply put, payroll is the process of paying employees for work performed at your business. While at a glance, this is not difficult to understand, payroll involves far more intricacies than the basic definition alludes to. As a business owner, you’re not only responsible for paying your employees for the work they do in a given pay period;you’re also responsible for managing certain with holdings, including healthcare premiums, Social Security and Medicare, to name a few. Learning how to calculate these with holdings manually can be challenging, which is why payroll services are so useful.
The What and Why of Payroll Providers
You might be asking yourself, “What is a payroll provider, and why do I need one?” Good question. A payroll provider is a company that is composed of a team of payroll professionals who perform payroll services for other businesses. These businesses employ people who are highly knowledgeable about payroll processes and tax laws. These employees work in tandem with specialized software to ensure payroll accuracy and compliance.
If your business hires W-2 workers, then payroll will always be a process your business needs. Depending on the number of employees you have working under you, determining payroll on your own can become time-consuming and increase your risk of making mistakes when calculating employee wages.
Payroll Providers Offer More Than Paychecks
For many business owners, the relief of having another company handle payroll calculations is a win, but payroll providers offer much more than the calculation and disbursement of paychecks. A good payroll company will completely reshape the way a business handles its payroll and might even improve efficiency and workflow. To improve the way a business runs, payroll providers offer business owners many different features, including:
- Tax services –Apayroll company can calculate and file a business’s tax forms before the due date approaches.
- Withholdings –Payroll services accurately calculate employee withholdings, which may include insurance premiums, wage garnishment, retirement savings, etc.
- Reports –As a way to let business owners analyze the company’s efficiency, payroll providers create a variety of different payroll reports.
- Integration –Payroll companies can integrate their software with programs your business already uses.
- Employee portals –Most payroll companies will develop a secure portal where employees can view their payroll information.
Is One Service Better Than Another?
Like any other industry, payroll providers can offer a wide variety of services, and some of them will appeal more to certain business owners. The term “better” is subjective in this sense, so it’s important to conduct your own research about different payroll providers to determine which services most benefit your needs. Check out the company’s ratings and reviews from other clients, the list of features they offer, pricing, contracts and all other aspects of what would be included in a business relationship with this company.
When it comes to payroll companies, it’s good to research a handful of different companies to determine which is best suited for your business. Making the right decision can take much of your company’s payroll stresses off your plate and allow you to focus on work that will help improve your company’s efficiency and productivity.