5 Signs Indicating the Need to Outsource Payroll

5 Signs Indicating the Need to Outsource Payroll

The end of the month is approaching and you are working feverishly to finish up payroll processing. In the back of your mind, you are thinking that payroll never used to be this difficult. You remember when the entire job took less than half a day, compared to the three days it now takes. What happened? More importantly, is it time to start thinking about outsourcing?

The reality of payroll is that it evolves over time. Unfortunately, that evolution generally means things get more complex. The amount of effort required to complete payroll increases along with company size, the number of employees, new regulations, and a plethora of other considerations.

If you and your payroll department are having trouble keeping up, it might be time to outsource. Here are five signs indicating that outsourcing would be a good idea:

1. You Have Multiple Classes of Workers

BenefitMall, a Dallas-based payroll provider, offers a specialized payroll solution for the construction industry. They say that a lot of employers struggle with the same thing construction companies deal with: a staff consisting of multiple classes of workers. If your payroll department is having trouble keeping salaried workers, hourly workers, and independent contractors straight, it might be time to think about outsourcing.

2. You are Struggling with ACA Compliance

Seven years after former president Obama signed the Affordable Care Act into law, employers are still struggling to keep up. Compliance has been so challenging that the IRS has had to delay enforcement efforts on multiple occasions. And as ineffective as the current Congress appears to be, it does not look like ACA compliance problems are going to be resolved any time soon. Your company should think about outsourcing if ACA compliance is a struggle.

3. Your Current Software Is Outdated

Your company is a great candidate for outsourced payroll if your current in-house software is so outdated that it is no longer functional. Why invest in a new software platform that will inevitably have to be replaced a few years down the road, when outsourcing will save your company time and money?

4. Your Employees Want Online Access

Some employers want to couple software upgrades with online access for their employees. Once again, outsourcing to a third-party provider like BenefitMall kills two birds with one stone. Not only does a company not need to invest money in a new software solution, but they also do not have to set up online access. The payroll company handles it for them.

5. You Want to Separate Payroll from HR

A lot of small companies lump payroll and HR together out of necessity. This is not necessarily a wise idea. HR departments have a tremendous volume of non-payroll work to worry about already, so they do not need the hassle of payroll processing as well.

If your company is looking to separate HR and payroll, you have one of two choices. You can either split your current department into two, keeping the same employees and hiring more as needed, or you can transition the existing department to HR entirely while outsourcing your payroll to a third-party provider. The latter option makes the most sense.

Companies across America are gradually coming to understand the value of outsourcing payroll. Providers like BenefitMall offer various levels of payroll processing service ranging from bare-bones solutions to fully comprehensive packages that include payroll, benefits administration, retirement plans, and even workers’ compensation insurance.

The end of next month will be here before you know it. Are you prepared for another round of payroll processing, or are you ready to outsource payroll to a specialized provider?

Category Business

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