{"id":12486,"date":"2022-12-19T10:08:30","date_gmt":"2022-12-19T16:08:30","guid":{"rendered":"https:\/\/valorpayrollsolutions.com\/?p=12486"},"modified":"2023-06-10T10:48:17","modified_gmt":"2023-06-10T15:48:17","slug":"payroll-outsourcing-in-2022-the-ultimate-guide","status":"publish","type":"post","link":"https:\/\/valorpayrollsolutions.com\/blog\/payroll\/payroll-outsourcing-in-2022-the-ultimate-guide\/","title":{"rendered":"Payroll Outsourcing In 2022: The Ultimate Guide"},"content":{"rendered":"
Did you know that the IRS\u00a0increased their tax audits<\/a>\u00a0of small businesses by more than 50% last year? What would happen with your small business if you were to get audited?<\/p>\n Don’t let the fear of tax time limit your success as a growing company. One of the biggest fears of small business owners is ensuring payroll compliance. That’s why many business owners have adopted payroll outsourcing as the best solution.<\/p>\n Don’t worry if you don’t know what payroll outsourcing is or whether or not it’s the best option for you, because we’ve got you covered. Keep reading to learn everything you need to know in our ultimate guide to payroll outsourcing.<\/p>\n Your payroll department likely wears many hats. Unfortunately, too many employees only think about payroll if their check is late. But there is much more that goes into ensuring your payroll is done correctly than writing paychecks.<\/p>\n As a small business owner, you must ensure that you’re also compliant with various tax and withholding laws and requirements. Additionally, you must ensure your employees get the benefits they deserve such as paid time off and overtime.\u00a0 Managing these details while you’re also trying to run and grow your successful business can become overwhelming quickly.<\/p>\n That’s why many business owners, large and small, are choosing to outsource their payroll duties to an expert. When you work with an expert, you allow them to take care of the many payroll details so you can get back to the work you love.<\/p>\n Outsourcing your payroll is simply the act of hiring an outside provider to perform certain tasks related to ensuring payroll compliance and implementation. And if you’re\u00a0a new startup<\/a>\u00a0or a small business, getting your payroll correct from the start is imperative to ensuring success for years to come.<\/p>\n In today’s global environment you likely\u00a0have remote employees<\/a>\u00a0in various states with differing tax laws. Stop worrying about whether or not you’re tackling your payroll correctly. Hire an expert who specializes solely in payroll so you can rest assured knowing you’re in compliance with the many different laws that apply to all your employees.<\/p>\n Some common benefits our clients have enjoyed after outsourcing their payroll department include the following:<\/p>\n You started your business to help your customers and clients. You don’t want to spend your time figuring out everyone’s withholding and tax requirements. Outsourcing payroll is the smart solution so you can get back to work you love that grows your business.<\/p>\n If you’ve been spending your nights pouring over your payroll then you’re probably ready to let an expert take this headache off your plate. And if you’re ready to save some money by cutting back your HR department, then payroll outsourcing could the solution for you.<\/p>\n But knowing where to start or what to outsource first can be incredibly overwhelming for many business owners. The first place to start is to decide what tasks or responsibilities you want to outsource. Some companies choose to outsource certain duties while others choose an entire package to handle all their payroll needs.<\/p>\n We’ve put together a list of the\u00a0ten most common duties<\/strong>\u00a0businesses choose to outsource. Take the time now to determine what you want to delegate to an expert so they can take them off your plate.<\/p>\n As you can see there are several different responsibilities you can outsource to a payroll expert. You can also see why you’re spending so much of your valuable time worrying about payroll.<\/p>\n Let’s dive into the next step of finding the right provider for your business needs.<\/p>\n There are several different types of providers out there for you to choose from. Don’t jump at the first option you find. Take the time to assess your needs so you can find the right specialist for your situation.<\/p>\n Every business is different and you’ll need different services based on your situation. You might only need someone to track your employee’s hours and distribute paychecks each pay period. Other businesses will choose a more all-encompassing option that allows them to completely offload their payroll needs.<\/p>\n Some starter questions you can ask each provider you’re considering include:<\/p>\n From your weekly hours worked to monthly worker’s compensation payments and annual taxes, your payroll duties involve many different layers. And each layer has its own unique nuances and requirements. Staying on top of all that information is more than you need to worry about while you also grow your small business.<\/p>\n So, write out what tasks from the list above you need or whether you might need a complete package of payroll assistance. When you have this information you’ll be able to better find the right fit for your company.<\/p>\n The more data you track and enter the less you’ll have to pay your provider to do. This is similar to handing your accountant a box of receipts versus a spreadsheet or software printout of expenses for the year. Take the time to have your employees track their information and enter it into your chosen software program.<\/p>\n Some information you’ll need to provide includes any new employees hired in any given month and\u00a0their onboarding information<\/a>, any terminated employees, any employees on maternity leave, overtime and holiday hours, as well as regular time tracking and hours for all employees.<\/p>\n Something as simple as offering all your employees a paid day off for Christmas can mean you need to spend an entire afternoon correctly entering that information. Holidays, vacation days, and maternity leave are\u00a0more complicated than they seem<\/a>. You need to ensure that this information is tracked diligently and reportedly\u00a0efficiently\u00a0so your payroll specialist can ensure you stay in compliance with vital tax regulations.<\/p>\n Now you’ve completed the work needed to ensure your payroll and employees are taken care of. The next steps are completed by your payroll expert while you get back to working on growing your business.<\/p>\n When it comes to\u00a0payroll management, there are several key functions your provider will do each pay period. These include:<\/p>\n A quality payroll specialist will give you more than weekly paychecks. You also need someone to ask questions, ensure all your tax paperwork is in order, and even ensure you have the proper systems in place.<\/p>\n At Tulsa Payroll, you’re teamed up with a\u00a0dedicated specialist who gets to know you and your business. You won’t have to repeat yourself to several different people and your specialist will understand your specific needs. This allows us to work with you in a more efficient manner and offer better customer service so you know you’re getting the best care available.<\/p>\n Don’t risk\u00a0payroll audits or fines<\/a>\u00a0that could severely limit your business growth. You can’t afford the headaches or financial cost of making a payroll mistake. Let an expert help you ensure that your payroll is done correctly and efficiently so you and your employees can trust that their paychecks are correct and on time.<\/p>\n Now that you’re well on your way to outsourcing your payroll, let’s cover some important best practices. These are our top tips for any small business looking to streamline for efficiency and ensure optimal success.<\/p>\n As you begin to delegate certain tasks in your payroll obligations, this is a great time to evaluate your overall HR processes. Take the time to look at your routine tasks that happen regularly. Then assess whether or not your current processes are working for you and ensure optimal efficiency.<\/p>\n Unfortunately, too many businesses waste time and money\u00a0on inefficient processes<\/a>, outdated software, and a general lack of knowledge about their needs. As a business owner, you need to ensure that your processes, systems, and software are up-to-date and working at peak performance.<\/p>\n Write out new guidelines so everyone is on the same page when it comes to performing these routine tasks. Everyone on your payroll should know how to track their time and enter any necessary paid time off or overtime worked. Every state has\u00a0different overtime laws<\/a>, be sure you know what is required of you as determined by your state so you can ensure full compliance with the law.<\/p>\n The more you can streamline these routine tasks the less you have to do them yourself. And when you outsource your payroll to an expert you aren’t paying them to take the time to enter this information manually. Save your business time and money by streamlining all basic HR processes.<\/p>\n As you start looking for a company to take over your payroll responsibilities, starting with the cheapest or closest option might be easy. However, you can’t risk the legal implications that will come from inaccurate payroll reporting.<\/p>\n Instead, take the time to evaluate the experience and reputation of each of your options. Ask for referrals, and then take the time to call and follow up with each reference.<\/p>\n Ask each provider what their certifications and experience include. This will show you they can take care of your many payroll needs, regardless of how many\u00a0special requests or concerns you might come across.<\/p>\n When you choose to outsource your payroll it can become tempting to forget about your responsibilities. However, it’s still vital that you remain vigilant about keeping up with changing tax laws as well as any other regulations that could affect your business.<\/p>\n Outsourcing payroll will alleviate your time so you can focus on your key revenue-producing activities. But this doesn’t remove you from the responsibility of ensuring your company stays compliant.\u00a0Be sure to stay on top of any future changes in local, regional, and federal laws.<\/p>\n As you can see, payroll outsourcing offers many benefits and takes this important task off your already too-full plate. We’ve put together this ultimate guide to help you make the best decision for your business. Use the information provided above to help guide your process as you outsource your payroll to the best specialist for your situation.<\/p>\nWhat Is Payroll Outsourcing?<\/h2>\n
Top Benefits of Payroll Outsourcing<\/h2>\n
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How to Outsource Your Payroll<\/h2>\n
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Take the Time to Choose the Right Provider<\/h3>\n
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Track Your Employee Data and Submit It to Your Provider<\/h3>\n
What the Payroll Service Provider Does<\/h3>\n
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More Top Tips for Processing Payroll Externally<\/h2>\n
Streamline Your HR Processes<\/h3>\n
Choose a Provider Based on Experience and Reputation<\/h3>\n
Stay On Top of Rules and Regulations<\/h3>\n
Outsourcing Payroll Makes Sense for Your Bottom Line<\/h2>\n