How Payroll Outsourcing Works

Guide for Small and Medium Enterprises

Many owners of small and medium businesses prefer to outsource payroll services to focus on their essential business functions. Full-service providers handle payroll tasks such as wage computations, reporting, tax withholdings, and bank deposits.

Compliance and Accurate Documentation

With an external agency managing your payroll functions, you cut costs on hiring in-house staff. Outsourcing means the third-party provider will handle tax compliance concerns and ensure that taxes are correctly computed and remitted on time. Therefore, you avoid hefty fines imposed by the Internal Revenue Service or IRS.

Another benefit is that you are assured of error-free and prompt direct bank deposits. All payments are quickly made without risks of theft or loss which is a win-win situation for employers and employees alike. Outsourcing will also help you maintain organized documentation. Dependable providers use sophisticated software and advanced techniques as against manual procedures which are prone to errors.

Finding A Trustworthy Partner

In outsourcing your payroll services, here are some pointers that may prove helpful.

Know your requirements. What exactly do you need. Is it a bookkeeper or accountant? Or, your company may require a full-service company providing all payroll functions. Once you have identified the exact work that the external provider has to perform, start doing your research and check out possible referrals or recommendations.

The next step after pinpointing your options is to make a shortlist of reputable firms. Review the track record of each candidate carefully and look at independent reviews about the providers in your list. List down the advantages, disadvantages, and rates of the service providers for comparison before making initial contact.

Your first meeting should preferably be in person. Ask all the possible questions from the candidate. These should include the following:

Previous clients
Payroll and compliance solutions
Software and technologies used
Rates and costs
Years of experience in this business or industry

The longer their experience indicates that the potential provider has a deeper understanding of the laws and regulations related to payroll matters. Conduct due diligence to verify the provider’s integrity and experience. The payroll provider should also have a proven capability in terms of the following:

Confidentiality and privacy concerns
Knowledge of data encryption methods, firewalls, back-up procedures, and multi-factor authentication
Ability to demonstrate solutions for data protection.

Finally, check all references submitted and see to it that there are no derogatory records and complaints from past clients against the potential provider.

Unless you have a dedicated and capable staff that you can rely on for payroll tasks, outsourcing may be the most cost-effective option for you. Just make sure that you will be comfortable with your partner in the long-term.

PCS Prostaff – Certified Solutions Provider

If you want the most efficient payroll services, do not hesitate to contact PCS Prostaff.

We have been in the business of providing for different business organizations in California and adjacent states during the last 20 years. As a service provider, it ensures ease of payroll processing as well as systematic management of company payroll.

You can always visit our company website at https://pcsprostaff.com/ to see our competencies and know the services that we offer. Or call us at these numbers 866-413-4103 during business hours to set an appointment with our HR and Payroll experts.