The Benefits of Outsourced Payroll in the Coronavirus Era
Customized Outsourced Solutions for Business Owners
By Chris Keith
When outbreaks of the novel coronavirus, or COVID-19, arrived in the state of Kansas and Kansas City metro areas, businesses were faced with the difficult decision to close. Restaurants are among the hardest hit. While carryout and delivery are still options for some, these solutions aren’t anywhere near full income replacements for many restaurants. Retail businesses haven’t fared much better. Sudden business closures aren’t the only thing restaurants and retail have in common: a high percentage of businesses in these sectors still rely on traditional, in-house paper payroll.
These are just two of the many industries heavily impacted by COVID-19 closures. Businesses with fewer than 100 employees that don’t need a full-time, in-house HR employee may be feeling the effects of an outdated payroll system right now. And what happens when your payroll processes are mixed with unexpected business closures? A tricky situation that makes it hard to pay employees and comply with payroll tax laws that are changing constantly.
Even though it might seem counterintuitive to make changes to business processes in a time like this, there has never been a better time to outsource your payroll.
The Benefits of Outsourced Payroll
Outsourcing your payroll has many benefits, some of which can be seen immediately.
An outsourced payroll system can be much faster than manually tracking hours, inputting time, printing physical checks, and handing them out – or any slightly more modern variation of that process. Integrated technology such as time clocks and Employee Self Service (ESS) portals can eliminate the need for manual processing of payroll. Systems such as these allow for payroll to be completed in minutes.
Many employers may offer direct deposit but still issue paper payroll vouchers or send them through email. Using email for sensitive documents is inherently unsafe and opens the door to hackers easier than many might think. A proper Employee Self Service (ESS) portal is extremely secure and protects your employees’ sensitive information.
It’s automatic and remote.
Cloud- based payroll software can be run anywhere with internet access.There’s no need to be onsite, no need for a person to manually type in hours or print checks, and no need for anyone to be involved with actually paying employees. Employees input their time, the system tracks it, and they get paid automatically once you approve the time.
It ensures payroll tax compliance.
Outsourced payroll eliminates the need to manage payroll tax reporting and payment. When you can’t be on-site due to an unexpected illness or natural disaster, like what we’re experiencing now, the stress and worry of wondering how to stay in compliance with payroll taxes are taken away. Outsourcing your payroll means that you will have a partner that knows the ever changing tax and labor laws. Your partner will help provide your employees and business all the proper pay and tax benefits available by law.
Whether we’re experiencing a pandemic or not, there’s no reason to pay for things you don’t need. Learn about outsourced payroll solutions that can be customized to your business needs here.
Many employment law changes related to COVID-19 are expected in the coming weeks and months. With these anticipated changes, you can expect the required-by-law workplace rights posters to be changed. As a result, you’ll need to monitor these changes and post the posters in your designated area within seven days. To save the compliance headache and get these posters mailed to your business as changes happen, fill out this form.
Why Go Paperless?
Even though there are several advantages of a paperless payroll system, changing to a new system, especially amidst an economic and public health crisis is daunting. Don’t let the thought of learning a new technology overwhelm you. ABBB’s paperless payroll system is very simple to use and doesn’t require any of your time from the employer to maintain.
Businesses that still deliver paper checks are all too familiar with the costs of mailing checks or utilizing a courier service; sometimes these costs can be as much as $25 per pay period. Switching to a paperless payroll system eliminates both of those. This puts money back in your bank account.
Employers also know how complicated and time-consuming payroll can be. One of the greatest benefits that clients report after switching is how much more time they have to focus on their core business operations or strategic planning.
And during an unexpected disaster or other emergency, employees can still get paid on time. There won’t be any more scrambling to meet deadlines, arrangements to make for someone to fill in, or the unknowns of managing payroll in an uncertain economic environment. It’s taken care of for both you and your employees, knowing that payday is guaranteed even when the business itself – or the manager – is down, the level of security and comfort is priceless.
How to Get Started
Payroll is just one piece of the puzzle, but it’s a crucial element that if left unchecked or mismanaged can result in unwanted penalties and fines. Outsourcing your payroll is like a security blanket for businesses. Especially in the wake of COVID-19, it’s more important than ever for employers to utilize technology to run their businesses more efficiently.
To get started, contact our payroll team today. You’ll be onboarded and trained within a few days, while enjoying peace of mind knowing that you can reach out for answers at any time.