Due to the coronavirus outbreak, several businesses are currently battling to stay afloat. Without resorting to layoffs, business owners are looking for new ways to generate revenue. While the federal government has provided help through programmes like as the COVID-19 Economic Response Plan, which provides wage subsidies and access to accessible credit for payroll and other purposes, it is still insufficient for many firms to save their businesses and employees. During a crisis like this, it’s critical to cut costs that aren’t necessary. Outsourcing aspects of your organisation is a terrific method to save money.
If your company uses paper-based payroll in-house, switching paperless and outsourcing payroll to an online accounting firm could save you money. Companies with fewer than 100 employees don’t require a full-time payroll processing person. If you do, you’re probably dealing with the consequences of an out-of-date payroll system.
While making improvements to your company operations at this time may seem counterintuitive, there has never been a better opportunity to do so. This is why:
Small firms lack the financial and human resources required to keep payrolls running smoothly. When we consider how much time an employee spends on payroll-related tasks, the time spent quickly pile up. Payroll administration takes up less time, allowing you to focus on running your firm. Let’s look at how much it costs to operate payroll in-house:
You’ll be able to process payments more quickly once you’ve outsourced your payroll system. You won’t have to manually log hours, enter time, print physical checks, and distribute them one at a time. You can also reduce the requirement for manual payroll processing by utilising integrated technology such as time clocks and Employee Self Service (ESS) portals. Everything can be finished in a matter of minutes this way.
Despite still issuing paper payroll vouchers or sending them through email, many firms prefer direct deposit. This method is risky because hackers could intercept and steal personal information. Everything is secure with an ESS portal, preserving your employees’ personal information.
Cloud-based payroll software may be controlled remotely and automatically from anywhere with internet access. There will be no need for you to be on-site, and there will be no need to manually type in hours or print checks. Employees are free to enter their time, which will be tracked by the system, and they will be paid automatically once you accept it.
Another significant advantage of outsourcing payroll is that it eliminates the necessity for payroll tax reporting and payment. When you can’t be on-site due to unforeseen circumstances, such as the one we’re facing right now, you can still stay in compliance with payroll taxes because everything can be done remotely. When you outsource your payroll to a reliable online accounting business, you gain a partner who is up to date on the ever-changing tax and labour laws. They will work with you to ensure that your company complies with payroll and tax regulations.