Providing payroll services can be a tedious task for any business. It’s a complicated process that requires a deep attention to detail and a large investment of company time to ensure no mistakes are made and employees are paid on time. While some businesses outsource their payroll to bookkeepers or accountants, a professional employer organization (PEO), which provide HR services, might be the better option.
5 Ways a PEO Can Help Manage Your Payroll
1. Saves Money
Small and medium-sized businesses can’t afford to devote an entire department to payroll services. Doing it yourself can end up costing you money by overpaying employees, or paying penalties from the IRS for inaccurate recordkeeping. You can hire an independent contractor for your payroll needs, but PEOs are cheaper and more efficient. They offer automated services that are done in real-time, ensuring your payroll is accurate and up to date, and offer discounts to handle other HR services (such as workers’ compensation and retirement) your business might need.
2. Increases Focus
Small businesses need time to maintain stability and grow. Time spent focused on payroll services could be time spent on the actual service your business provides. PEOs not only provide payroll assistance but also offer other HR-related tasks that are otherwise time-consuming, such as hiring staff and complying with the Affordable Care Act, giving you the time to focus on improving and growing your business.
3. Minimizes Risk
State and federal tax laws are nuanced, complicated, and change constantly. It’s easy to make mistakes, which can lead to penalties and audits from the IRS throughout the year. Outsourcing payroll services to a PEO puts the task in the hands of experts in payroll processing, tax regulations, wage reporting, and hour laws, protecting your business from unnecessary risks.
4. Guarantees Reliability
Many businesses outsource their payroll services to bookkeepers and accountants. They’re also technically independent contractors, who can quit suddenly, leaving your business unable to pay its employees. A PEO isn’t a single independent contractor—they’re a team of professionals who have an agreement with your business to provide these services with consistency and reliability.
5. Provides Security
Payroll data contains sensitive information for both employer and employee. PEOs provide secure servers and networks that not only backup the information, but also protect your business from potential data breaches, identity theft, and embezzlement.
If your company is interested in outsourcing its payroll services, reach out to the professionals at Talent HR Solutions. They have provided HR-related duties to small businesses throughout Honolulu, HI, for over 15 years. Their detail-oriented and devoted staff work with clients to develop a personalized plan that best suits their needs. To schedule an appointment, call them at (808) 354-0498. For more information on their many HR services, including recruitment, workers’ compensation, and health benefits, visit their website.