Outsourcing payroll services is an acute opportunity for businesses to increase productivity. Payroll is an essential function of a business, but it is not directly related to a company's core business. It is a time-consuming process that requires attention to detail and active monitoring of employee data. Although some companies are hesitant to outsource this process because of the sensitive information involved, outsourcing payroll can be very beneficial, especially for small businesses that do not have enough resources to manage a large in-house staff.
Outsourcing is done to save time and money on tasks that are not integral to a business, and this is the same with payroll services. With a reliable offshore staffing agency, all your payroll worries and difficulties are taken care of. They manage all the little things in a highly professional manner, provided you hand over all the information regularly and on time. Below, we list the benefits you reap by outsourcing payroll.
Save valuable time
If you don't have a dedicated department or staff to take care of your company's payroll only, which is the case with small businesses, it means that this task is delegated to either an accountant or an employee of the HR department. However, payroll requires a lot of time and concentration, as it is a task that requires attention to detail, otherwise, the company will be penalized if it makes mistakes. There are no shortcuts and no procrastination. So, if your employees spend many hours gathering all the necessary data and making sure that every detail is recorded and all the forms are filled out correctly, they are not working on their actual tasks. By outsourcing, you take this extra work off your employees' hands, freeing up time that they can use to provide quality services to the business.
In addition to the time involved, taking on this task also costs your company money. All the time that employees spend on payroll alone, and not on their own work, is money lost for the company. On top of that, you need various tools and software to support payroll. So any hours spent by employees, along with the special infrastructure you provide to support payroll, is usually much more than what it would cost you to outsource the task. It's more cost-effective to hire an employee overseas to help with payroll than to hire and train them locally.
Handled by experts
This is arguably one of the most important aspects of outsourcing to an offshore provider. Yes, you save valuable time and money by outsourcing payroll, but it wouldn't mean much if you didn't get quality results. By hiring a dedicated offshore staffing provider, you get qualified and experienced people working for you. They have the expertise in the field, and you need experts to handle payroll. Along with keeping track of all hiring, firing, employee benefits, garnishments, severance, paid time off, attendance records, and more, it requires keeping up with all laws and regulations, including tax laws. It's not easy for an employee of a company who is not an expert to keep up with all the frequently changing federal and state laws and forms that relate to employees and businesses. But it's paramount to comply with them or risk penalties and audits, which is something you want to avoid. Incorrect data, improper filing, and late submissions are not acceptable. You need specialists in the field with extensive knowledge to handle payroll for you. Offshore providers have both talented staff and an established system to handle your payroll, efficiently minimizing risk.
Payroll administration involves sensitive and confidential data of your employees, which is at high risk of being compromised if managed internally. There are frequent cases of data tampering and misappropriation. Not to mention the risk of cyber-attacks and data theft on the internet. However, with payroll outsourcing, you get access to highly secure software and hardware with minimal security risks and data backups. Since the provider's reputation depends on the quality of its services, the security of its client's data is a priority for it. Your data is protected when you outsource, so you don't have to worry about it all the time.
Your company can streamline internal processes and increase productivity by outsourcing payroll. Even if you somehow manage your payroll internally right now, as your business grows and you hire more employees, your tasks will increase and you won't have the time to closely monitor payroll. So if you're an SME, outsource it now and invest the resources you save into growing your business. You won't even have to worry about scaling, if necessary, with your offshore provider, as this is generally straightforward. Focus on your business and let your offshore team handle the payroll task.