Tag Archive for payroll service

The Importance of Payroll Services

If you happen to own a business, you will be well aware of all the effort and work that you will have to put into it. And although you may be proud of all that you have accomplished, even the most experienced business owner dislikes doing all the tedious, “non-money-generating-yet-related-to-the-business” type of work. Payroll services are part of such tedious work, that although important, no one really likes doing. That said, I’m sure you would want to be safe than sorry, and so, you need to understand the importance of payroll services.

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What is a payroll service?

It is basically record keeping of every employee’s salary. That is a very tedious job description isn’t it? Nevertheless, it is of utmost importance and has to be done with care and diligence. As business owners, you need to be able to pay off your hardworking employees at the end of the month the right amount of money that they have worked so hard to earn.

And so, it is important that you keep records of what you are paying them, so that you can pay what you owe them on time. Although time-consuming, this is a task of utmost importance. Since it is a time-consuming and tedious task, many businesses use a method called outsourcing, which basically means that they hire an agency that specializes in bookkeeping, and they take care of the payroll services every month so that you or your employees don’t have to worry about it.

Advantages of payroll services

Whether you form a special group within your business to look after the payroll services or hire outsourcing, bookkeeping has several advantages. It will provide security, as you will be sure of exactly how much you have paid each and every employee that you have in your business. With the use of technology these days, you can have accurate results and theft and fund embezzlement can be prevented this way.

Accuracy can also be assured by hiring a bookkeeping firm, as they will be more professional and less likely to make any errors. And also, they will be fully accountable for any mistakes made. Hiring professionals also has another advantage; speed. They will be fast in delivering the final calculations to you, which will enable you to pay off your employees faster.

Even if you don’t outsource a payroll service, keeping records will still benefit you, as at the end of the day, the main aim is to keep your employees happy. The faster you pay off your employees at the end of the month, the happier and more productive they are.

Bottom Line

Bookkeeping helps you achieve your main aim, which is to pay off your employees as quickly and as accurately as possible. It also helps you keep track of the money that is being spent on the employees’ payrolls, as you can now rest assured that no money is being lost due to theft.

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How To Select The Right Payroll Service Provider

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Running a business can be very rewarding but it also has a plethora of different challenges. One of the biggest challenges is dealing with payroll so these suggestions will help you streamline the process. You could try and process the payroll on your own but if you make a mistake you could be slapped with heavy fines and penalties so you need to look for professional organizations that offer these payroll services. There are some questions that need to be addressed before you can select a payroll service so be sure to follow these steps in detail.

Key Questions To Address When Screening The Various Payroll Service Providers

The first question that must be addressed is whether the payroll service provider handles remittance to the government including superannuation. If the payroll deductions including this superannuation is not submitted to the government in a timely manner then you could be levied with penalties.  After you have confirmed the payroll service provider performs remittance you can move to the second item, how many years has the payroll service provider been in business. There are new firms opening up daily but you don’t know whether the firm is reliable or not so what you need to do is look for firms that have been in operation for 5 or more years. Once you have identified the organizations that have been offering these payroll services for more than 5 years you should find out how much each of them are charging for their services.

Each of these payroll service providers will charge whatever they feel their service is worth. Some will charge an hourly rate while others will either charge a flat fee or take a percentage of the total payroll being processed. What you need to do is look at the pricing in detail and make a list of the top 20 firms based on the fees being charged for their services. Now that you know which of these payroll service providers has the most competitive pricing you have to review their individual track records to try and identify the one who has the best reputation.

The most effective way to establish this reputation is by reading over the comments made by other business owners who have used or currently are using the payroll service provider you are screening. To get this information you must visit a variety of different social networking websites and read over all of the comments made by these business owners.  If you are not satisfied or able to find comments on these social networking platforms you should look for independent websites that review payroll service providers. Only when you have completed this due diligence should you move forward and meet with the payroll service provider in person to discuss your needs in detail.  If you stick with this approach you will have more time to focus on growing your business knowing your payroll issues have been addressed.

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