What Is Outsourced Payroll?
If you’re used to cashing checks rather than handing them out to employees, you may not be terribly familiar with outsourced payroll. Thankfully, KMA is here to help you have a better understanding of payroll services.
When you outsource payrolling, the company will set up its software with you, entering all employee data. For each pay period, the accounting provider will access each employee’s time card data, adding new employees when necessary. All hours worked will be confirmed and designated either “paid” or “unpaid.” Pre- and post-tax deductions will be taken into account, and your employees will receive their pay. Depending on your preferences, pay can be made with direct deposits, pay cards or through physical checks mailed to employees or your business.
Additionally, a provider can pay your business insurance company or vendors for you, giving you one less task to take care of. You should also make sure all taxes and insurance payments related to payroll are handled by the provider.
Reasons to Consider Outsourcing
There’s plenty of software available that allows you to take care of your own commercial accounting tasks. That said, there’s no guarantee the program operates according to the latest tax regulations and laws; you may very well find yourself on the receiving end of a penalty or fine. You also may not be prepared for the time commitment involved with handling payroll. We understand that you want to do everything you can to save money while operating your business, but you could cost yourself more than you realize by choosing to take on this task by yourself. Leave the job to the pros who do this for a living.
There’s no doubt that it’s great for business owners to understand the basics of business accounting, but the fact remains that it’s best to turn to experts. For more info on outsourced payroll services, contact us.