Is it payroll time again? And here you are, either an accountant who do it all or a small business owner who dreads the agonizing but absolutely necessary task, paying your employees. You are the one in charge and supposedly an expert on everything payroll from taxable benefits rules to the latest governmental regulation. Is this the week when you have to include the statutory holiday pays? Did one of the employees just quit? As overwhelming as keeping the business running smoothly, paying your hard working employees should not be another burden you constantly have to worry about. So why don’t we leave this task to the expert, the payroll services. There are increasing companies, big and small who have made the switch and here are the advantages:
- Time is money. You can save hours of work each pay period by simply inputting the data and let the payroll provider take care of the rest ie. deduction calculation, government remittance and direct deposit to employees. The payroll services also issue ROEs and T4s.
- Accuracy. The payroll service provider accommodates a wide range of payroll requests with accuracy from statutory pays for part time employees, commission structure to varying pay period in each pay run etc.
- Flexibility. Since most of the service providers nowadays use online portal, you can access and input payroll information anywhere, any time.
- Cost saving. The cost of for each payrun depends on the number of employees you have each pay period plus a base run cost. For example, for a small business of 40 employees, it could cost less than $5K annually which is a fraction of what you would pay to hire a full time payroll administrator.
There are many options from reputable providers such as Ceridian, Payworks, ADP to name a few. Besides the cost factor, you should consider the current structure of your payroll system and how each provider can meet your needs and possibly future demands to include other services like time management or absence management.
In a competitive environment where businesses are looking for different ways to cut costs and increase their profit margin, outsourcing payroll task is worthwhile to consider, not only because of the cost advantage but it also frees up significant valuable time to allocate to where the business really matters.