Payroll processing is one of the integral operations of a business that deals with individual salaries, tax deductions, and other major payments. All these strategic components influence the business sales and the administrative sector, encouraging the managers to stay more concerned about this. This is why businesses either look for third party payroll software or a cloud-based payroll solution. Here, we will discuss more on third party arrangements.
Key findings from Deloitte survey 2018
- 39% of organizations are more inclined towards cloud-based payroll solutions. In fact, 21% of them have already chosen this method to evaluate accurate payrolls.
- 6% of the organizations are paying more attention to process automation, while 16% of the global enterprises are still planning for such an implementation.
- 24-27% of businesses across North America, EMEA, APAC, and Latin America look for third party vendors to outsource their payroll processing function.
Now the question is – why are people relying on third party payroll companies or software? Let us list down the features that impress the companies and encourage them to make immediate investments.
What is the basket of features included in third party payroll software?
We all know, evaluating payroll is a crucial segment for every organization. Hence, manually performing this is not just tiring but even requires a lot of hard work. The featured-rich payroll processing software for accountants turn out to be the game-changer. Here are the following features –
- Compensation administration
- Tax calculations
- Employee self-service
- Reporting and analytics
- Compliance management
- Direct deposit
What are the reasons behind selecting third party payroll software?
Payroll for accountants is pretty challenging. It requires full concentration and a lot of time to derive accurate results. A single mistake leads to high employee turnover and a huge loss to the business. Third party payroll companies are in high demand nowadays, obviously, because of the following compelling reasons. Let us explore them.
- Cost efficiencies: Third party payroll software is responsible for building high-cost efficiencies. Many of you may wonder how payroll processing can control the expenses. After all, they are not related to hiring and recruiting. Definitely, they are! Performing payroll processing manually requires heavy investments in hiring payroll experts, infrastructure, training, and development. All these require significant funding, which again increases over time.On the other hand, reaching out to third-party payroll companies eliminates the extra expenses and allows businesses to access many resources required for payroll processing. The business capacity of handling huge volumes of payroll thus increases without causing any hassle.
- Reducing compliance issues: Cost efficiency is the primary factor in making long-term business profit. Still, many businesses struggle to enjoy this due to their compliance issues. With 3rd party payroll processing software for accountants, you can get rid of this obvious operational hurdle. The software takes care of the federal and local laws, remuneration policies, and other industry regulations, eliminating all the headaches that arise with this. Paying a few bucks for the payroll software, you can definitely streamline your complex payroll calculations. Additionally, you also can ensure that payrolls are complying with the changing laws.
- Accurate payroll calculations: Employee recognition and appreciation is not everything for retaining the talents within your organization. Processing the payments and salary on time and with accuracy also has a great impact on employee turnover. The third-party payroll for accountants leaves no stone unturned to make accurate calculations and deliver payments without making any delay. Calculating the payroll by entering data one by one involves a lot of human errors and risks. All such errors can be eliminated simply by automating the process with payroll automation software.The third-party vendors working on payroll systems use an automation tool to control the errors and time consumption. This shows companies who have already made such critical investments are not at all wrong in their thoughts.
- Quick turnarounds: Changes are inevitable in every business, and so are the challenges. A business adopting the changes is always vulnerable to challenges. Not just in the case of payroll processing, but even for every sector. However, you can actually keep your business running with payroll processing software, reducing the major risks associated with the changes. Even if a business faces trouble while dealing with payroll changes, the advanced software solutions offer quick turnarounds. The third-party payroll manages the entire payroll by executing the process based on the frequent changes. This helps filter out all the bottlenecks the business faces and scales up the factors that are responsible for a better bottom line.
- Reduces the lead time: Besides payment consistency, compliance, and cost-effectiveness, a business often struggles with the payroll lead time. Companies working hard on the payroll segment manually find this extremely problematic. Lead time is basically the time span between submitting payroll data and receiving payroll to the employees. The shorter is the time span, the greater will be its impact on the employees. No employee enjoys a delay in payroll reception. We have already talked about this earlier.A little delay irritates the personnel, discourages them, and demotivates them to stay engaged with the brand. This is why many financial institutions and banks have already entered into relationships with many third-party payroll intermediaries. What about you?
Will third party payroll software contribute a lot to the business’s bottom line?
Outsourcing to third party payroll service providers is thus no longer a bad idea. If you are interested in gaining additional profits ensuring operational consistency, and top-graded services, 3rd party payroll will certainly give you a breakthrough.
Are you searching for an ideal third-party payroll software to process individual payments? Check out the software products available at Omind Technologies. Our experts assist you with the best solution to your concern. No doubt, you will enjoy a win-win situation with the third-party payroll software deployment.