Thinking of Outsourcing Payroll?
The more hourly employees a company has, the more important it might be to outsource payroll to manage tracking hours and payroll…
Some companies have dedicated payroll departments and others find it useful to outsource this process to one of many companies that specialize in payroll. How do you know which option is right for you? Here are some things to consider.
How big is your company?
One of the biggest concerns when it comes to answering this question is how many employees your organization has on staff. However, the answer isn’t cut and dry. Small companies like to use payroll services so they don’t need to worry about payroll or employ a dedicated payroll contact at their company. Larger companies like to use them to maintain consistency, manage compliance issues, and streamline processes across HR departments.
Do you need more than just payroll?
There are other reasons to consider an outside vendor, especially if your company also wants time and labor tracking, online access for employees or other HR services. An outside vendor may be able to meet a wide variety of your needs with options like online Open Enrollment, HR management or tax filing.
Are your employees exempt or nonexempt?
Exempt employees are traditionally paid an annual salary. Nonexempt are usually hourly employees who receive hourly pay and qualify for overtime. The more hourly employees a company has, the more important it might be to outsource payroll to manage tracking hours and payroll.
How often is payday?
Another thing to consider is how often you pay your employees. Salaried employees are frequently paid twice a month. Hourly employees might be paid every two weeks or every week. This is something a payroll service can work out with you to be the most effective for your type of business.
Do you have more questions about outsourced payroll? Contact us today.
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