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Monthly Archives: November 2014

Ensure Labor Law Compliance with Payroll Outsourcing

Labor LawLabor management through labor law compliance is an essential tool for business growth. Businesses spend huge amounts annually either to ensure compliance with these stipulations, or as a penalty payment for non-compliance.

While small businesses are offered exemptions from certain laws, compliance with other regulations is always mandatory. As a result, you can either opt for expert opinion on labor law consultancy or opt for inexpensive compliance methods.

Payroll outsourcing is a business best-practice through which most small businesses ensure labor law compliance. Best-in-class payroll outsourcing involves a highly advanced cloud-based payroll platform, which acts an integrated Payroll Management system. Here is how this option serves as a bottom-line friendly solution:

Integrated System that helps cuts Resource Time

The host updates the payroll system virtually without the need for a business to worry about any software downloads or repeated annual purchases. This saves you the hassle of sifting through labor regulations on your own or paying thousands in fees for expert advice when managing payroll. It also cuts down on your admin costs as there is absolutely no need for clients to have multiple vendors managing their employee time management and payroll processing needs. Click here to learn more. In addition, for a small business, it costs a fraction of the total cost a company would pay in monthly wages and benefits if it had a full-time person on staff managing payroll.

Ensure Compliance through Proper Time-keeping

Not only does payroll outsourcing ensure compliance, it also provides documentary evidence to assist the same. For e.g. the Fair Labor Standards Act (FLSA) implements a:

  • Forty-hour workweek
  • Minimum wage rate
  • Time and a half overtime for certain jobs

Cloud-based payroll systems calculate employee attendance and working hours to the nearest second. This ensures fair and transparent wages/salaries calculation and overtime (if any). Employees also have access to stubs as documents of the number of hours worked.

Evaluating Performance

The U.S. Code Section 4302 on the Establishment of Performance Appraisal Systems requires the setting up of fair and transparent performance appraisal criteria. This criterion is based upon a mutual participation of both the employer and employee.

For small businesses with few employees, setting up a performance criteria for job growth is easy. However, monitoring and evaluating employees’ performance against the criteria can be problematic. Without a proper employee management system in place, irregularities in employee promotion and rewards can be expected.

Payroll outsourcing enables businesses to view a productivity report of every individual. This reiterates objectivity when evaluating the performance of an employee against the established criterion.

Payroll Outsourcing provides small businesses with complete payroll solutions for emerging businesses that:

  • Keeps all employee data confidential (in accordance with Employee Privacy Laws)
  • Gives employees access to their own individualized payroll accounts; and
  • Ensure accurate payroll calculations and tax deductions.
  • Fully manages the payroll and payroll tax compliance dynamics of a growing company having employees in multiple locations.

To learn more on how you can avoid state penalties for non-compliance of labor laws, please do reach out and contact us.

About SimpleX Payroll

SimpleX Payroll is a full-service payroll company that specializes in delivering unparalleled service standards to small-medium sized businesses in all 50 States. SimpleX Payroll is built on providing a cloud-based all-in-one premier Payroll Processing Suite that includes Employee Time Management & Attendance, Unlimited Custom Reporting, Calculating Taxes, Accounting & System Integration features.

5 Ways in which Outsourcing Payroll Ensures Business Growth for Small Businesses

growthManaging small businesses requires cost-effective growth maximizing strategies. This involves:

  • Leadership
  • Resource planning
  • Identifying inefficiencies in daily tasks
  • Taking corrective measures accordingly.

For small businesses, payroll management is one the most challenging and time consuming activities e.g., keeping track of payroll tax deductions and timely disbursements. Often viewed as a task management function, payroll management if not executed properly can have unintended consequences for a business, such as incurring IRS penalties and massive employee dissatisfaction.

To avoid these issues, many businesses rely on payroll outsourcing as a preferred best-practices solution. To understand the benefits of how payroll outsourcing enables business growth, below are some of the potential business benefits:

1. Cost-Effective

This is one of the primary reasons why small business owners should consider payroll outsourcing. A bottom-line friendly payment provides you with the full benefits of a powerful integrated payroll suite. This helps you to reallocate your resources to marketing and brand promotion strategies. It can also cut down your admin costs, as you minimize the need to employ an entire payroll department or process payroll yourself.

2. Accurate Payroll Calculation

Nothing annoys employees and affects their productivity more than incorrect payroll calculations and disbursements. Payroll calculation is a complex procedure and requires strict compliance with payroll taxes and employment laws.

Payroll outsourcing efficiently mitigates the risks associated with non-compliance of payroll taxes and associated employment laws. Integrated payroll software packages are continually updated with respect to applicable tax and employment law changes. This provides:

  • Accurate payroll computation
  • Timely payroll disbursement
  • Adjustments of any paid leaves or any other contingencies on a timely basis
  • Reliable data for audit and quality control review
  • Your employees with plenty of insurance/retirement options to choose from.

3. Tax Compliance

Your payroll process does not end with salary disbursement. Tax returns are required to be filed with the IRS. Any discrepancies in payroll tax calculations or delay in payment result in penalties. Furthermore, tax laws are complex and require research, interpretation and consulting.

Payroll outsourcing, in this regard, ensures:

  • Compliance with all tax regulations
  • Accurate income tax calculation
  • Timely preparation and filing of tax returns

4. Easy Accessibility

Cloud based payroll suite solutions are designed to be compatible with the most advanced mobile technology platforms. Your employees can directly access their payroll accounts from their smart phones if they need to make any changes (for e.g. banking/account number changes). Similarly, you can easily view individual payroll data and identify any inconsistencies or discrepancies.

5. No Expertise Required

Though outsourcing, your payroll system is complete and comprehensive. Periodic payroll reports aid in strategic decision making. Employee productivity, performance evaluation and appraisal, and other pertinent matters can be evaluated without employing additional expertise.

It is necessary to utilize the services of a quality payroll outsourcing agency to reap all the above mentioned benefits and view payroll processing as more of a strategic management function vs. a task management function.

About SimpleX Payroll

SimpleX Payroll is a full-service payroll company that specializes in delivering unparalleled service standards to small-medium sized businesses in all 50 States. SimpleX Payroll is built on providing a cloud-based all-in-one premier Payroll Processing Suite that includes Employee Time Management & Attendance, Unlimited Custom Reporting, Calculating Taxes, Accounting & System Integration features.

Why Should You Switch to Cloud-based Payroll Software?

Cloud PayrollCloud computing is one of the most cost-effective ways of managing your business functions. For small businesses, single cloud-based software can easily record and store all business transactions and provide managerial and strategic reports accordingly.

For any business, regardless of size and orientation, managing the payroll is a complex procedure. From maintaining proper attendance sheet to timely salary disbursements, several variables are to be considered.

In the years gone by since the advent of cloud-based payroll systems, you can consider payroll outsourcing as an imperative cost-minimizing growth strategy. Such a decision will help benefit your business in the following ways:

Cut Down Your Costs

Managing payroll requires technical knowledge and expertise. Every small business has two options in this regard:

  • The owner prepares the payroll through detail research and analysis of every labor law (time-consuming); OR
  • Employ HR personnel or other experts (can be costly). Why? Because cash flow is a huge challenge for business owners. Owners often neglect their payroll tax compliance responsibilities because they are constrained with resources to pay for a professional employer organization (PEO) to handle their HR, payroll and tax compliance needs

To save time and cost, using a cloud-based payroll system by far provides the business with a more economical choice. In this case, the (outsourced) payroll software is maintained and updated by the Payroll Provider. Clients therefore, have no software related downloads or associated expenses to worry about when using a cloud-based integrated payroll solution. In addition, bottom-line friendly pricing helps achieve huge cost savings.

Reallocate Your Resources

For any business, payroll constitutes the major portion of admin expenses. From computation of payroll to printing of pay-slips, it incurs several overheads.

By means of cloud-based payroll outsourcing, a business can redirect its resources on client management and customer engagement. As the burden to self-manage payroll is eliminated so goes the burden of increased admin expenses. Its costs a fraction of the total cost a company would pay in monthly wages and benefits if it had a full-time person on staff managing payroll.

Compliance with Laws

The outsourced payroll company continually updates the payroll system, with respect to the latest changes in employee/labor rules and tax regulations. This ensures compliance and avoidance of penalties for any non-compliance. Due to financial constraints, most business owners often neglect their payroll tax compliance responsibilities.

Resolves Employee Grievances

Most of your employees’ grievances are payroll-related. Typical problems include:

  • Incorrect payroll calculation
  • Excessive tax deduction
  • Attendance discrepancies
  • Working hours adjustments

Integrated outsourced payroll solutions are designed to provide:

  • Accurate payroll and tax computation
  • Timely tax payment and salary/wages disbursement
  • Access for employees to update their payroll account, with respect to any changes in particulars
  • Complete and accurate attendance record, productivity record and statistics for performance evaluation.

Aids Documentation Procedures

By providing reliable and accurate electronic data, cloud-based payroll systems provide a basis for audit documentation and quality control review. Periodic productivity analytics and access to payroll insights enable your business to make decisions on training, development and right-sizing as the situation dictates.

To learn more about how cloud-based system benefits your business and improve productivity, feel free to contact us.

Cut Down Your Admin Costs with Payroll Outsourcing

save buttonStriking a balance between improving performance and reducing costs is a major challenge for every business. Your business performance and your individual employees’ performance are correlated. Hence, improper payroll calculation and disbursement are likely to be a bottleneck in ensuring employee motivation and effective business management practices.

Maintaining an efficient payroll system is riddled with challenges, particularly for a small business. Unless you have robust knowledge of the ever changing employment and payroll tax compliance laws, in-house payroll processing may not be a cost-effective option for you. In such cases, payroll outsourcing is an alternative your business can consider.

Through payroll outsourcing, you can significantly cut down your administration expenses. This cost-effective technique helps you achieve business growth and employee satisfaction in the following ways:

HR Outsourcing

An integrated all-in-one payroll system does not only calculate payroll, but provides several other HR functions such as:

  • Preparing Quarterly and Annual Payroll Reports to the IRS
  • Computing Tax calculation for your employees
  • Providing Easy-to-fill Tax Return Forms
  • Offering Retirement Investment Plan options for your employees to consider
  • Devising a system that automatically updates its database every time an employee leaves or a new employee joins
  • Adjusting employee payroll for sick leaves, paid leaves and other contingencies
  • Keeping up-to-date with all relevant employee and tax laws and regulations

Instead of investing in the often cost prohibitive services of HR personnel or HR Department, your small business can outsource payroll with a bottom-line friendly monthly payment. Outsourcing your payroll often is more economical and costs a fraction of the cost when analyzed against the burden of hiring and providing employee benefits to a staff member to manage payroll.

Better Resource Planning

Since payroll is one of the most daunting tasks faced by small business owners, outsourcing can lead to better resource allocation. The time and costs saved through outsourcing can be utilized in product marketing, customer retention, and other revenue-improving strategies.

Ensures Tax Compliance

Employee/labor laws and tax regulations are frequently revised. Payroll calculated, that is inconsistent with any revised regulations, can result in IRS imposing penalties on your business. Ignorance is never bliss for a business! Outsourcing payroll ensures that your payroll is:

  • Calculated in accordance with the recent legal changes; and
  • Deposited with the government treasury within the stipulated time frame.

This saves your business from bearing any penalties.

Easily Accessible

Most of the payroll outsourcing companies provides a payroll system that can easily be accessed through your mobile phone or tablet. Pay-slips calculated in this manner are:

  • Reliable
  • Free from errors
  • Easily downloadable and printable
  • Directly deposited to your employee bank accounts, without the use of checks or pay orders.

Your small business, however, can only benefit from payroll outsourcing if your vendor does not require any additional charges/subscriptions for add-ons.

About SimpleX Payroll

SimpleX Payroll is a full-service payroll company that specializes in delivering unparalleled service standards to small-medium sized businesses in all 50 States. SimpleX Payroll is built on providing a cloud-based all-in-one premier Payroll Processing Suite that includes Employee Time Management & Attendance, Unlimited Custom Reporting, Calculating Taxes, Accounting & System Integration features.

3 HR Issues You Can Avoid Through Payroll Outsourcing

HR PeopleIrrespective of size and orientation, the successful execution of the Human Resource management (HRM) function of any business is a challenging task. HR for any businesses is embroiled with issues of recruitment, training, redundancy, and resolving the grievances of employees.

Effective HR management in small businesses requires a system that allows for HR to monitor the attendance, performance and productivity of employees.

Payroll outsourcing can be an inexpensive strategic option that complements the HRM function and help avoid 3 major HR-related issues that affects every business:

1. Incorrect Employee Evaluations

This is one of the major challenges every business faces. Employee attendance and performance is a vital factor when considering performance appraisals, promotions, training and other professional development needs of the employees.

A cloud-based all-in-one Payroll Processing Suite that includes Employee Time Management & Attendance, Unlimited Custom Reporting, Calculating Taxes, Accounting & System Integration features can help in the following ways:

  • Provides an integrated system that records employee attendance to the nearest second.
  • Payroll software also measures employee productivity, providing you with critical insights to support performance evaluations.
  • Adjustments for lunch breaks, sick leaves, paid leaves and other contingencies are easily incorporated, providing a more transparent and best-practices approach for processing payroll.
  • As pay is a sizeable and important motivator, accurate and on-time payroll motivates employees, moderating need for investment in activities associated towards boosting morale in the workplace.

2. Compliance with Labor Laws

HR management is also concerned with keeping up-to-date with latest revisions in employee/labor laws and tax regulations. For small business owners, this means detail research and scrutiny of the legislation and/or seeking expertise/consultancy. This only adds to their costs.

Payroll outsourcing provides your business with a system that is continually updated with respect to changes in labor laws. This protects your business from any penalties/fines imposed that may be imposed. Integrated payroll systems also provide accommodation for various retirement and insurance options for employees to choose from.

3. Employee Grievances

Statistically, a number of employee grievances business encounter are pay discrimination related. From attendance issues to incorrect payroll calculation and tax deductions, employees get frustrated easily when it comes to inaccurate pay.

Payroll outsourcing helps businesses mitigate pay-related employee grievances through:

  • Accurate calculation and timely disbursement of payroll
  • Timely attendance and productivity recording
  • Deduction of tax at source, in accordance with tax codes

To learn more about the effective ways of managing payroll and achieving savings straight to your bottom-line, please click here.

About SimpleX Payroll

SimpleX Payroll is a full-service payroll company that specializes in delivering unparalleled service standards to small-medium sized businesses in all 50 States. SimpleX Payroll is built on providing a cloud-based all-in-one premier Payroll Processing Suite that includes Employee Time Management & Attendance, Unlimited Custom Reporting, Calculating Taxes, Accounting & System Integration features.