Using a payroll services provider simplifies payroll management for companies by allowing them to outsource their payroll management. The services a payroll services provider typically provides includes preparing and delivering employee checks, direct deposit of pay into employee bank accounts, calculating and withholding necessary taxes, filing payroll reports and other employment related documents. Other services a payroll services provider may offer include employee accessible phone and internet tools, management of employee retirement plans, health benefits, timekeeping, processing worker’s compensation claims and more.
All of these services can save businesses time and money because they will no longer have to worry about managing their payroll. This frees them up to focus on what they do best. This can be especially true for small businesses who may not have the resources or expertise to effectively manage their own pay roll.
Payroll services providers are typically staffed by Certified Public Accountants. This expertise means that a payroll services provider is often better equipped to handle payroll management for a business than that business themselves. It is this expertise that is responsible for over 85% of Certified Public Accountants recommending to small businesses that they enlist the resources and knowledge of a professional payroll provider.
Using a payroll services provider also simplifies things for businesses because they end up with just one report to approve and one invoice to pay. This can make it easier for businesses to expand into other jurisdictions where it would otherwise be difficult due to different and confusing payroll rules between jurisdictions.