What is a Payroll Service?
A payroll firm is a corporation that provides services such as payroll computations, payroll tax statements, year-end taxes, and more. Your employees' deposits and withdrawals, withholding and pay garnishments, and new-hire reporting are all handled by a full-service payroll provider. It is easier to pay any sort of employee, including full-time, part-time, and freelancers when you use a payroll system. It lets you focus on your business while specialists manage your payroll.
Different Types of Payroll Options
Spreadsheets
The manual payroll method necessitates the payroll process to be carried out entirely by hand, without using any automated systems. It consists of mounds of spreadsheets, necessitates data collection and entry by hand.
Automation
The automated payroll system manages the payroll process with automated software that automates processes. Payroll automation aims to eliminate mistakes, save time, and simplify the complete payroll process, from timekeeping to computing tax and regulatory deductions.
Key Benefits of Payroll Automation
1. Accuracy
Without the assistance of a trained accountant or bookkeeper, payroll processing can be challenging. Payroll firms will handle your payroll properly, and you can rely on them to adhere to tax regulations. Payroll calculation can be frustrating, especially if you have a large number of employees. Payroll processing by hand is prone to mistakes, which can lead to misunderstanding and even tax evasion. An automated payroll service can complete complicated calculations quickly and accurately on your behalf.
2. Cost-saving/Convenience
After receiving your company's information, the supplier will handle all of the computations and payroll processing for you. Many providers make updating any information straightforward by sending an email or using an internet portal.
Step-by-step for Choosing The Right Provider
1. Evaluate your business
The size of your company counts regardless of the payroll system you use. There are payroll businesses that claim to be able to manage payroll for any size business. While this may be true for some, it does not imply that they are appropriate for you.
You can follow these general guidelines:
You will not have to worry about compliance difficulties if you run a very small firm with less than 6 employees with little regulation. If you go with your accountant or bank, be sure you have workers' compensation insurance and all of the necessary documentation filed with the state. Make sure you understand the fundamentals of payroll so you are not held liable for the mistakes of others.
If you have a small firm with 6 to 50 employees, you still use free payroll software because you don't need all the bells and whistles. If you choose this option, be sure you follow all applicable payroll regulations.
You will need a payroll system that can meet all legal criteria for a small to medium-sized firm. A decent choice is to use all-in-one HR payroll software.
For a medium-sized firm with 100 or more people, the cost of volume must be considered, as well as compliance with all legislation. Because you have over 100 employees in your firm, a human resources information system is necessary.
1a. Size and feature considerations
Payroll services that can manage a variety of different-sized organizations are usually more expensive and come with more features. Companies with a small number of employees may choose simpler services that fulfil their demands of paying employees and taxes, and vice versa. Always keep in mind how many employees you already have and how many you expect to have in the future. Also, seek internet evaluations from similar-sized businesses that have utilized payroll providers when doing your study.
1b. Business Operation Location
Your payroll option should take into account your company's and remote or overseas employees' city and country locations. If your company has only one or a few sites around the city, you will have the easiest payroll situation. You have a wide range of alternatives. If your company has many locations or has remote employees in more than one city or nation, you will have to comply with numerous requirements. To guarantee compliance with those requirements, you should use HR or payroll software. Also, if you have employees in different nations, you will need international payroll services.
1c. HR Expertise within your Company
If you are searching for a new payroll provider, you might be wondering why you would need to have any payroll or HR knowledge in your organization at all. The reality is that, even though you will be paying a company to assist you with your payroll, you will still be held accountable for any errors. This is something you should think about before choosing a service provider.
If no one knows anything about payroll or HR, manual payroll software is not the best option. You may be able to ensure that your employees get paid, but you may not be aware of the rules and regulations that apply to them.
2. Narrow Down Your Payroll Service Options
2a. Product features
You should also investigate if the service offers several payment choices, such as direct deposit, paper checks, and prepaid debit cards, in addition to payroll processing and the fulfillment of all tax responsibilities. You should also check if it offers numerous wage rates, wage garnishment, workers' compensation administration, unemployment insurance, and comprehensive payroll reporting.
2b. Ease of use
The payroll service should not be overly complicated. It should have a simple user interface that allows you to quickly process payroll and add people to the system.
2c. Data conversion
When considering a conversion, make sure the payroll system integrates with the core HR and attendance systems. When payroll, core HR and time tracking data are centralized, there will be higher user flexibility, fewer payroll mistakes, eliminated redundant data input, lower labour expenses, and increased visibility into corporate trends and KPIs.
Look for a company that provides a specialist implementation manager with the necessary skills to translate the differences in the systems and make recommendations for changes that will boost productivity, minimize the risk of errors, and lower expenses.
Whether your firm has employee garnishments, non-cash fringe benefits, or complicated vacation rules, you will want to find a solution that meets your specific needs and scales to your organization's structure.
2d. Data integrations
Many companies have existing business investments for benefits, such as general ledger software, point-of-sale (POS) systems, and retirement packages. The ability to integrate these existing systems with an online payroll system is a huge benefit as all of the data is accurate and up-to-date. Other benefits include eliminating duplicate data entry, reduced paperwork, and point-in-time reporting.
2e. Customer support
The amount of customer assistance given is another equally significant issue to consider during a payroll conversion. You should have the security of knowing that a member of customer service is on hand to guarantee a successful collaboration with the payroll provider.
3. Research and compare payroll service providers
The next step is to conduct research and evaluate payroll service providers depending on the services you want. I propose making a chart that compares and contrasts the suppliers who pique your curiosity. This will make it easy for you to compare and contrast each service provider.
How Zebra can help you?
Zebra takes pride in offering professional and complete end-to-end payroll outsourcing services in full accordance with local employment legislation as a leading human resources firm in Hong Kong. It automates payroll processing and guarantees that employee benefits and compensations are calculated correctly. It lowers the expense of inaccuracy caused by human error. When needed, legal and human resources guidance is also offered. After subscribing to Zebra's ePayroll solution, you no longer need to worry about the payroll process.
