There are some CPA firms that may offer payroll services as part of their accounting services. The level of services and administration can, however, vary. You may help your clients in streamlining their payroll reporting, filing schedules, deposits, and more. However, it is not essential that you may be offering payroll administration like other CPA offices.
Because of the complexity of payroll processing services, it is essential for your firm to have a large team of professionals who are dedicated to this specific area of your business process. This is why it makes more sense of consider payroll outsourcing services. Such a firm is focused on payroll consulting and administration and can make the task much simpler or your office.
Importance of Payroll for a Company
Payroll processing and management is important from both the accounting perspective and HR perspective. There are many reasons for you, as a CPA or CA firm, to invest in the services of outsourced payroll providers.
Both the payroll and taxes have a major impact on a business’ profits. The following points should help you realise the importance of payroll and the need for payroll outsourcing:
- It is required to report a company’s net profit under law
- If the profits or taxes are reported late or erroneously, it can attract penalties
- There is also the risk of underpaying or overpaying taxes
Human Resource Perspective
The right payroll service providers can also help a company benefit from the human resources perspective. When it comes to human resources, the impact of the quality of payroll management is significant on the staff’s morale. It is in a company’s best interests to keep their staff satisfied and treated well. This requires that they are paid on time and correctly.
When the staff pays more taxes than they should, it can affect their morale. On the other hand, underpaying can mean that they will have to pay a larger amount in the future. It can also cause inconvenience to them. There are even more reasons for hiring the services of payroll outsourcing companies.
Benefits of Payroll Outsourcing
There are many ways in which your company can benefit from hiring payroll processing services. Some of the most noticeable ways in which your company is going to reap the benefits are described as follows:
- Maintaining Accuracy & Meeting Compliance Requirements
Errors are the biggest concern when it comes to managing a company’s payroll. Unfortunately, errors occur more commonly than you may realise. Processing payroll for just one average employee requires dealing with more than a dozen data points. It is quite easy to make an error in one of these points when handling the records of hundreds or thousands of employees for your clients.
The impact of payroll errors goes beyond the staff’s morale. It can also mean losses for the business. As already mentioned, inaccurate tax calculation or late submission can draw penalties from the authorities.
Besides, there can be frequent changes to regulations involving reporting and other compliance requirements. This is a big reason you should consider outsourcing corporate payroll services. As a CPA or CA overlooking the accounts of dozens of businesses, professionals, and individuals, it can be difficult for you to keep track of such changes. Most often, the changes to tax legislation and codes are complicated. You will not only have to keep track of these changes but apply them correctly to the payroll processes.
When you choose the best payroll companies, they have experienced, qualified, and specialized payroll experts. Besides, they use advanced systems to ensure the accuracy of payroll processing. Besides, the payroll gets processed in a timely manner. Besides, they keep up-to-date with the latest tax-related legal changes.
- Save Time
When you choose outsourced payroll solutions, you are making your operations more efficient. You and your employees will be able to focus on tasks that you specialise in. These benefits further trickle down to your clients.
When you consider outsourcing payroll services for your company, it helps you save valuable time. You can focus on your core strengths to develop your business. Everyone’s time will be spent where it is most productive.
- Long-Term Cost Savings
Choosing payroll outsourcing services also help in increasing your long-term cost savings as compared to managing it in-house.
One way you can save money is that there is no need to employ people who are there only for payroll processing. Another way it translates into cost savings is by preventing the need to invest in expensive infrastructure. It is the maintenance aspect of the cost involved in people and infrastructure that you are able to save in the long-term. Besides, you will not have to deal with the daily payroll data of your clients, which can mean having to maintain a larger workforce.
As already mentioned, preventing errors can go a long way in reducing unwanted expenses. This is another area where payroll outsourcing can help increase cost-savings.
- More Data Security
As mentioned above, payroll outsourcing companies can invest in specialised, advanced systems that may be expensive or not possible for your company. Such systems have state-of-the-art security systems that protect your payroll data from any threats. With new data-related regulations becoming stricter and more complicated, it is best to allow the specialists to deal with payroll processing. This helps eliminate any security risks associated with managing the data in-house.
What Do Payroll Service Providers Offer?
When you hire payroll processing services, they can take care of the following aspects:
- Running payroll and preparing pay and withhold calculations of employees
- Calculate payroll taxes
- Make tax withholding payments
- Deposit employee salaries in account or issue cheques
- Administer staff benefits
- File essential reports with the authorities
The best payroll companies can provide many other services. When you get the help of experts who are specialised in this job, you are protecting your interests and those of your clients. At the same time, you can have some peace of mind, as the burden is taken care of by specialized professionals who know everything about the task.