Many companies are struggling to keep afloat right now due to the novel coronavirus outbreak. Business leaders are devising ways to generate revenue without resorting to layoffs. While the federal government has offered relief initiatives like the COVID-19 Economic Response Plan, which provides wage subsidies and access to available credit for payroll and other purposes, it’s still not enough for many businesses to save their company and employees. During a crisis like this, it’s essential to slash unnecessary expenses. A great way to cut expenses is to outsource parts of your operation.
If your business relies on paper-based in-house payroll, you stand to benefit from going paperless and outsourcing payroll to an online accounting firm. Companies with fewer than 100 employees don’t need a full-time, in-house HR employee processing payroll. If you feel like you do, then you are likely feeling the effects of an outdated payroll system.
While it may seem counter-intuitive to make changes to your business processes at a time like this, there has never been a more opportune time to do so. Here’s why:
Small businesses don’t have the capital or human resources needed to maintain payrolls as bigger businesses can. If we look at the time spent, by an employee on payroll-related activities, the numbers add up quickly. Less time spent on administering payroll means more time focused on running your business. Let’s break down the costs of running in-house payroll:
1- The cost of your own payroll software
2- Training costs related to getting employees up to date
3- The cost of printing and distributing payslips or and tax documents
4- And the biggest one, the time needed for calculating payroll
When you have outsourced your payroll system, you’ll find that you’ll be able to process payments faster. You will no longer have to manually track hours, input time, print physical checks, and hand them out one by one. You can also take advantage of integrated technology like time clocks and Employee Self Service (ESS) portals to eliminate the need to manually process payroll. This way, everything can be completed within a matter of minutes.
Many employers prefer direct deposit despite still issuing paper payroll vouchers or sending them through email. This practice is unsafe as hackers may intercept and get their hands on private information. With an ESS portal, everything is secure, protecting your employees’ private information.
Cloud-based payroll software can be managed anywhere as long as there is internet access. You won’t have to be on-site, and there’s no need to manually type in hours or print checks, either. Employees are free to input their time, which the system will track, and they will get paid automatically once you approve the time.
Another major boon of outsourcing payroll is eliminating the need to manage payroll tax reporting and payment. When you can’t be on-site due to an unexpected circumstance, like what we’re experiencing now, you can stay in compliance with payroll taxes as everything can still be done remotely. Outsourcing your payroll to a reputable online accounting firm means that you have a partner that is knowledgeable about the ever-evolving tax and lab our laws. They will be your partner in ensuring that your business complies with payroll and tax requirements
Thankfully, these types of global issues are not common as it relates to business, it can shed some light on common operational issues and areas to gain efficiencies. While it may not seem ideal to outsource your payroll through a global pandemic, making the change now can ensure that you provide a consistent and seamless payroll experience for your staff and your business.
Filing Taxes delivers a stress-free accounting experience. Get in touch with us today to see how we can help. Experts at Filing Taxes will be happy to assist business owners in this pursuit. To speak with an experienced accountant, contact Filing Taxes either at 416-479-8532 or [email protected] Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.
Disclaimer: The information provided on this page is intended to provide general information. The information does not consider your personal situation and is not intended to be used without consultation from accounting and financial professionals. Salman Rundhawa and Filing Taxes will not be held liable for any problems that arise from the usage of the information provided on this page.