03 Jan Is This Your Situation: Investigating the Advantages of Outsourcing Payroll
As fulfilled and engaged as your employees may be with their jobs, if they have any issues with their paychecks, it won’t take long for them to become frustrated. Some organizations have dedicated payroll departments and others find it useful to outsource this process to one of many companies that specialize in payroll. How do you know which option is right for you? Here are some things to consider.
- How big is your company, school, church or nonprofit? One of the biggest concerns when it comes to answering this question is how many employees your organization has on staff. However, the answer isn’t cut and dry. Small organizations like to use payroll services so they don’t need to employ a dedicated payroll department. Larger organizations like to use them to maintain consistency.
- Do you need more than just payroll? There are other reasons to consider an outside vendor, especially if your small organization also wants timekeeping or other services. An outside vendor may be able to meet a wide variety of your needs.
- Are your employees exempt or nonexempt? Exempt employees are traditionally paid an annual salary. Nonexempt are usually hourly employees who receive hourly pay and qualify for overtime. The more complicated the payroll process, the more important it might be to outsource it.
- How often is payday? Another thing to consider is how often you pay your employees. Salaried employees are frequently paid twice a month. Hourly employees might be paid every two weeks or every week. This is something a payroll service can work out with you to be the most effective for your type of business.
Do you have more questions about outsourced payroll? Please don’t hesitate to reach out to us at (817) 226-8111 to get answers. At Payroll Partners, we specialize in payroll and timekeeping for small organizations.
This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.