What are payroll services? A Brief Breakdown of what Employers do. Companies typically hire payroll services for one of three reasons: when, in response to the large number, payroll become too time consuming and complicated, or when management and owners conclude that time spent managing payroll is better spent elsewhere. Most times, these services include general payroll processing (generalized time sheets and pay checks), employment verification and salary calculations, tax withholding, retirement plans, health care enrollment verification, and payroll reporting.
When a company’s payroll needs become too complicated and time consuming, they may find that hiring an accounting firm or payroll services company can solve their problems. By outsourcing certain aspects of employee payroll, management and employees can concentrate on their day-to-day tasks, thus freeing them up to focus on other vital tasks. Accounting firms and payroll services companies will often provide their own general payroll functions. However, in order for the accounting firm to perform the specific functions required, it would be necessary to acquire knowledge of payroll administration from the employee and employer’s side. The outsourcing company would have no such restrictions, so it is possible to receive a highly customized payroll system from one of these companies that will provide accurate information to managers, and allow them to focus on other important tasks.
Another common reason that employers choose payroll services is because employees often prefer a simpler, easier to use process. With payroll services, employees do not need to undergo lengthy training in the process of creating, processing and reporting their own paychecks. Payroll software programs provide this information for the employer, which eliminates the need for additional training. When employees understand that payroll processing is automated by the payroll services provider, it is less likely that they will feel intimidated by the process. In fact, the employees will often appreciate being able to handle their own pay, saving time and money on paper and ink and paper rolls. This type of system can be quite useful when employees travel frequently, as well. Since most payroll service providers offer a wide variety of payroll options, it is easy to find a payroll software program that meets the needs of both the business and the employees.