5 Reasons to Start Working with Outsourced Payroll Providers
Have you ever considered working with an outsourced payroll provider? Whether you’ve just launched your company or you’ve been operating for some time, you’ve probably had to hire people and of course pay them.
As your business grows, so does your team. The bigger your team, the more time and effort you have to put into payroll.
So how can you keep growing your business while managing your payroll and paying employees on time? Most companies hire an HR person. But it’s not always feasible if you rely entirely on your tech team and don’t need that many HR services.
In cases like these we recommend outsourcing your payroll to a third-party like an HR outsourcing company or a manpower outsourcing services provider.
In this article, we’ll clarify what outsourcing your payroll entails and how working with outsourced payroll providers can support your business operations.
What is payroll outsourcing?
Payroll outsourcing is one of the top types of outsourcing in HR. Outsourcing is the process of handing over certain tasks to a third-party. This third-party can be a company, agency, or consultancy. In some cases, and depending on the service being outsourced, the tasks can be given to an individual freelancer, or a group of external people.
In other words, outsourcing is about delegating some of your internal tasks to a third-party outside your company.
For many, the majority of whom don’t work in the human resources field, payroll is a tedious task.
That’s why many companies outsource their payroll, because it’s something they’re not familiar with nor do they have time for.
What do outsourced payroll providers offer?
If you’ve considered handing over your payroll needs to a third-party, you may want to know that the majority of third-party HR service providers, like Tawzef, offer payroll along with payroll-related services.
For most companies, it’s about giving you the whole payroll package, this includes:
- Payroll services for employees.
- Opening bank accounts.
- Completing paperwork with new employees.
- Running background checks for new and potential employees.
- Conducting tax reports.
- Managing social insurance paperwork.
Among other services depending on the country you’re operating in.
Advantages of working with outsourced payroll providers
So what do you get when outsourcing your payroll to a third-party? Let’s examine the benefits:
1) Saves time
Whether you’re the business owner or team leader within a company, working with a payroll service provider means you can save time on tiresome administrative tasks and focus on driving the business forward.
2) Saves money
Many companies today are under pressure to cut costs. One way to do so is to delegate certain tasks and business operations such as HR strategy and payroll.
Doing so can reduce the burden of having to hire people for end-of-the-month projects like payroll.
Moreover, hiring third-party HR service providers can offset any fees or penalties you might incur if you make mistakes in payroll or compliance.
3) Results in fewer payroll mistakes
This benefit is probably as important as saving time and money. When non-HR people handle payroll, the room for making mistakes becomes significantly bigger. Especially as your team and company grows.
On the other hand, working with an outsourced payroll provider means you no longer have to worry about these payroll errors.
The payroll outsourcing service provider comes with years of experience in managing payroll. In addition, they expertly automate much of the process in a way that ensures fewer human errors and miscalculations.
4) Offers labor compliance
One of the major benefits of working with a payroll service provider is getting the third party’s experience with labor laws and regulations. HR agencies are well-versed in conducting and ensuring your company is compliant with government laws and workforce requirements.
This becomes even more important if you’re operating an office in a different country. Chances are you’re not going to be able to grasp all the regulatory requirements for operating your business.
An outsourced payroll provider, or an HR consultancy firm, can support your needs and update your papers if new regulations emerge.
5) Facilitates opening bank accounts
Many small companies today struggle with opening business accounts. By working with an outsourced payroll service provider, you don’t have to worry about opening bank accounts.
The whole process becomes the responsibility of the payroll service provider who already works with multiple banks and can easily open accounts for your employees.
How to choose a payroll provider that meets your needs
If you’re looking to outsource your company’s payroll, here a few tips to help you find a payroll service provider that meets your needs.
1) Determine your needs
As mentioned, most outsourced payroll providers offer more than just payroll. As a company looking to delegate some of its administrative tasks, you may want to get the full payroll outsourcing package.
2) Look for payroll service providers with experience in your niche
While payroll comes with many similarities across industries, some niches come with a set of payroll requirements that aren’t standard.
Some companies have to pay workers on a weekly or bi-weekly basis, while others have to disburse money to employees who run business needs.
That’s why we recommend looking for a payroll service provider that has worked in your industry or niche. They already have insight and experience working with not-so-standard payroll cycles.
3) Review their testimonials
When looking at and comparing payroll service providers, you should check out the testimonials they’ve received. You can go a step further by reaching out to the companies that gave them those testimonials to confirm whether they are as good as they say they are or not.
4) Consider manpower outsourcing agencies
If you’re thinking ‘I want to outsource payroll, why would I need a manpower outsourcing company?’ Then here’s your answer: Manpower outsourcing services act as the larger umbrella in HR, which include payroll services.
By hiring a manpower outsourcing agency, you can get additional services and benefits such as hiring and talent management, payroll, compliance, among others.
You’ll be getting the full service of a recruitment agency along with payroll and other services that can cut down on even more administrative tasks for your company.
Payroll is one of the most tiring tasks for non-HR employees. Some small companies hire a single person to manage their finances and payroll. But as the company grows bigger, so does the number of its employees and its needs.
But that’s not all. When it comes to paying employees, you have to take other elements into accounts such as labor taxes, social insurance, medical insurance, not to mention employee benefits.
So how can you tackle all of these requirements? By hiring a well-equipped and professional HR outsourcing agency to manage your payroll and other HR needs.
If you’re on the lookout for a partner to manage your HR needs so you can focus on growing your business, then get in touch with Tawzef.