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Monthly Archives: December 2014

What Factors Should Businesses Consider When Outsourcing Payroll?

According to a recent survey by Global Industry Analysts – a leading business strategy and market intelligence firm – the global HR outsourcing market is expected to surpass $160 billion by 2015 escalating from $103 billion in 2007.

Of all the HR functions, payroll is one of the most popular choices in HR outsourcing technology. Small businesses are particularly contributing to the shifting trend.

With a host of advantages, payroll outsourcing helps businesses streamline their functions and processes. However, choosing the right third party service provider is a challenging task, especially when businesses have valuable information at stake.

This article is part of an effort to help business owners know how they can choose the right vendor for this critical function to increase productivity and growth of their businesses.

Accuracy and Accountability

Accuracy is the foremost factor that businesses should consider when outsourcing their payroll. Persistent inaccuracies can be frustrating for employees resulting in dissatisfaction. Usually, the rate of error or inaccuracy is significantly low in outsourced payroll firms. However, they must assume responsibility if paychecks or paperwork is delayed or mishandled by them.

Compliance

The payroll system is influenced by the local laws and regulations. For example, Federal Unemployment Tax Act (FUTA) and Federal Insurance Contribution Act (FICA) mandate employers for record keeping and reporting while state labor laws impose additional compliance requirements.

Outsourced firms should be well versed with the federal, state, and local legislative requirements. They must also have efficient compliance functionalities to help businesses adhere to payroll related regulations.

Cost

The Accountancy Age survey states that the most significant benefit of outsourcing payroll operations is cost effectiveness of up to 42 percent. While many firms charge extra for giving additional services or adding or dropping employees, costs can differ dramatically across firms. Businesses can start by asking for the full details of charges before outsourcing their payroll operations.

Security

Many businesses are hesitant when it comes to sharing their sensitive information with a third party. However, an outsourced firm with a strong data security system in place can provide comfort in the protection of valuable information related to the business and its employees.

When it comes to choosing the right vendor for payroll services, business owners should consider the capabilities of their in-house team and compare the elements with what the outsourced firm can offer.

 

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, Unlimited Custom Reporting, Calculating Taxes, Accounting & System Integration features.

6 Ways Small Businesses Can Achieve Growth with Simple X Payroll

Payroll is an integral function of any Human Resources System. An efficient payroll system provides the basis to maintaining a satisfied workforce by paying them the right amount on time, every time

Historically, payroll processing was a manual operation that was vulnerable to errors and discrepancies. Automated payroll systems have made it easier for business managers to keep track of payroll data and manage related tasks efficiently.

An automated payroll system offers fully integrated payroll solutions to perform wide range of activities including accurate data collection, data processing, reporting, and compliance with legal requirements. SimpleX Payroll patent pending payroll management platform is a premier and fastest growing payroll management solution reaching all 50 States that can contribute to the growth and success of small businesses in many ways. Here is a brief look at how their suite can help small business owners achieve long term growth.

1. Employee Time Management

Their integrated payroll suite allows easy tracking of employees’ time from any device. It calculates the employee’s working time precisely leaving no room for time theft.

2. Process Payroll

With the highly efficient all-in-one payroll management solution, businesses can calculate employee wages taking into account deductions, overtime premiums, bonuses, and commissions. With online access to pay stubs, employees also retain the option to have their paychecks printed or direct deposited into their accounts.

3. Tax Calculation

The fully integrated suite is designed to calculate all federal, state, and local taxes at no extra cost to the client. By filling in a simple form, business owners can get accurate tax calculations of all employees with relatively no effort in a fraction of the time.

4. Track Employees

SimpleX can help small business owners track performance of their employees by seeing what they are working on, when they are working, when they are leaving and the breaks they are taking during any given work day. In addition, managers can measure the productivity of each employee using specialized features made available in the payroll suite.

5. Custom Reporting

Business managers can generate reports on employees’ productivity, user defined projects, and overall performance using different variables.

6. System Integration

SimpleX Payroll offers accounting and system integration with distinguished applications, software enterprises, and government accounting programs including:

  • Enterprise Resources Planning Software
  • Sage, QuickBooks, FreshBooks, and others
  • SAP, including government accounting software packages

To learn more about their integrated payroll management platform, small business owners can visit the company’s website as well as sign up for a no-obligation free trial.

 

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, Unlimited Custom Reporting, Calculating Taxes, Accounting & System Integration features.

5 Benefits of Outsourcing Payroll

Payroll processing is one of the most challenging tasks for business owners that need to be strategically managed to ensure successfully operation of the business. While small companies are often constrained to have a dedicated person managing payroll, the person assigned to manage payroll often is responsible for handling multiple tasks. This is where payroll processing becomes a task function vs. a strategically managed function.

Assigning the management of payroll to a single person who is also responsible for other admin and accounting related functions increases the chances of errors and discrepancies when it comes to ensuring payroll tax compliance.

As a way to mitigate this risk, small businesses prefer to outsource their payroll function to a third party payroll service. This option offers cost-savings and some of the best value added advantages to small business owners.

1. Cost Efficiency

The payroll outsourcing offers cost saving benefits to business owners. These cost savings result from a reduction in the cost of acquisition of advanced software, decrease in IT costs, and the cost of managing human capital (payroll and IT personnel, payroll tax, and employee benefits).

2. Avoid Penalties

Penalties due to errors or late payroll filing can be very costly for small businesses. Outsource firms offer the services of calculating payroll taxes, and providing tailored reporting on filing and payments due ahead of time. The penalties resulting from reporting or payment issues are assumed by the outsourced firm. Also, the service provider takes the responsibility to keep abreast of federal, state, local tax laws and make necessary adjustments to comply with the laws.

3. Saves Time and Effort

Outsourcing the payroll function eliminates the burden of processing the payroll. This way, entrepreneurs can utilize their employees more productively and efficiently. They can engage their staff and capital in more important revenue generation projects and elevate the growth of their business.

4. Avoid Technology Headaches

With the rapidly growing use of technology to aid best-practices and efficiency, keeping up with all the advancements is a daunting task for small businesses. The persistent cost of keeping pace with technology, including acquisition of software and training of staff, could slow down the growth of small businesses to a great extent. Moreover, unlike using an integrated payroll suite, the use of multiple vendor touch points to process payroll, time and attendance and payroll taxes often results in increased expenditures for a business owner.

5. Reliability

With specialization and levels of expertise in managing payroll, outsourced firms demonstrate exceptional quality, consistency, and speed in service delivery. They offer reliability that is a critical piece in payroll processing for small businesses.

Small businesses, working with limited capital and human resources, can improve their payroll management functions and transition themselves from seeing payroll as a task vs. a strategic management function. This inevitably provides invaluable insights to help increase productivity.

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, Unlimited Custom Reporting, Calculating Taxes, Accounting & System Integration features.