Payroll is one of the biggest, most important functions in accounting and HR. It’s something every employer must handle and it’s not a duty that can wait until later. If your employees weren’t concerned with their checks, they’d be called volunteers.
Depending on the size and complexity of your organization, payroll may be a full-sized, in-house department, a single full-time role, or one function routinely performed by HR in addition to other tasks. Also depending on the size and complexity of your payroll, it may make sense to outsource it to save time and money, and avoid compliance headaches and the risk of fraud. There will certainly be times when outsourcing is not the answer, but it makes sense for a lot of employers.
This week’s HR Outsourcing News Roundup brings you articles and blog posts with advice and information on determining whether outsourcing to a payroll services provider is right for your company.
The Workplace Issues That Keep HR Professionals Up at Night. TLNT: “HR’s mistakes can be far-reaching. Payroll feeds families, and there’s not much worse than a payroll mistake. In compliance and legal issues, the wrong question or response in a simple interview can turn into a lawsuit. One small filing mistake can be the difference between compliance and non-compliance. Security of employee data! Ummm, I’ll get back to you on that. It seems like we’re spinning a hundred plates, and eventually, some are going to fall! So what can we do to minimize mistakes?”
5 Protections from Payroll Fraud. LinkedIn: “The most important thing to protect any organization from fraud of any kind is the segregation of duties. Having a single trusted person who approves timesheets, adjusts payroll information, processes pay runs and then distributes this money to the bank is very common but is extremely dangerous. Not only does this person have the potential to commit payroll fraud in any number of ways, but they are also going to be on ‘the chopping block’ if they make a normal human error which could be seen as fraud. In fact, studies have shown that payroll errors account for 1.2% of wage costs so differentiating between accidental and deliberate errors could be problematic.”
Still Wasting Your Time on Payroll Processing? Job Search Guidepost: “First, a payroll service can save on salary costs, as well as reduce your bookkeeping and accounting costs. A study conducted by PricewaterhouseCoopers confirms that payroll outsourcing is actually less expensive than handling it internally. Secondly, allowing another company to handle your payroll processing puts that responsibility into the hands of a specialist (or a team of specialists) who knows the ins and outs of payroll administration.”
Common Payroll Mistakes. AssetHR: “Once you have withheld taxes from the employee, it is important to know when and how these taxes, along with the employer contributions, must be paid. There are many regulations at the federal and state levels that dictate when and how payments are to be remitted. If payments are late, penalties and interest can be assessed.”
Should You Outsource Payroll? Socialnomics: “It’s all about weighing efficiency factors like time, money, knowledge and skills. If your business has plenty of time but little money, as well plenty of knowledge and skills to do the work efficiently, then payroll in-house will work best. If you have more money than time, as well as insufficient knowledge and skills to do the work efficiently, then outsourcing payroll will work best.”
Contact us to learn more about how payroll outsourcing could work for your business.
HR Solutions is a human resources outsourcing firm based in Baton Rouge, Louisiana. We eliminate human resources headaches for businesses with 10 to 1,000 employees by handling their payroll, employee benefits, regulatory compliance and other staffing needs. Contact us to learn how we can streamline your company’s human resources function to save money and reduce risk.