What Is a Payroll Service?
Since the first business paid its employees companies have had to devote precious time to the arduous process of paying employees and keeping records of this. While companies had to do this it took a lot of the time that they could have devoted to things like:
• Business process management
To fill the need that companies had with regards to paying employees quicker and more efficiently payroll services were created to provide a third-party administration service for companies that takes care of payroll. Payroll Services have the ability to do many jobs, including streamlining payroll processes, improving productivity for the company it is working for and simplifying administration duties for the employing company. The latter services that a payroll service provider gives the employer ample additional time in its schedule to cater to its customers and focus on the most important thing you should focus on while running your business: the bottom line!
Not only can many different payroll service providers pay your employees – they can perform many other services as well. For example, some of the biggest third party payroll service companies have the ability to:
• Manage pay grades
• Pay employees
• Offer talent management solutions
• FSA administration
• COBRA administration
The preceding tasks would normally take a company a very long time to complete but, with a payroll service provider whose main business is providing the above solutions, the job goes a lot faster. This will enable companies to focus their time on more important things. Because payroll service providers do so much work in a very short amount of time – when compared to the time it would take for a company to do the work itself – the demand for them has grown immensely. As a result, the number of payroll service providers has grown too. You can now find many different payroll service providers that provide a plethora of different services; some of them provide only one of the services mentioned above while others provide all of them and thus offer a complete package, which would help you synergize your payroll processes.
Another great thing about payroll service providers is that they cater to small, medium and large business (depending on what type of payroll service provider it is). Small businesses might have a low number of employees but if they have lofty growth goals and would like to focus most of their attention on adding locations and customers, designing their product and maximizing profits then they would highly benefit from payroll service providers. On the other hand, large businesses can definitely benefit from payroll service providers as well. With a large number of employees in oftentimes multiple divisions within the same company, large businesses have less time to devote to paying employees and have more to gain by outsourcing the work. Obviously, medium-sized companies share the need for payroll service providers as well. Because of this large need, companies should highly consider hiring a payroll service provider.