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Why Payroll Office of America?

Payroll is an essential part of any business' administration, where accuracy is paramount. Since payroll errors can have significant financial and legal consequences for employers, ensuring filing deadlines and deposit requirements are met and understanding the changing payroll laws are two of the biggest challenges Human Resources departments face. Furthermore, payroll errors can deteriorate employee confidence and morale.

The Complexities of Payroll

The payroll process is a tedious one, requiring accurate record keeping, timely check disbursal and compliance with applicable laws. Key challenges in the payrolling process include:

Significant time requirements: According to Business Week, "processing your own payroll requires 54 steps and eats up between 40 to 60 hours each year, even for two-employee companies." Calculating payroll amounts and deductions is a detailed, time-consuming process, and employer mistakes in payroll processing are unfortunately easy to make.

Legal compliance: Adhering to the latest tax obligations and staying updated on changing legislation can be a complicated process, involving the time-consuming task of keeping track of the latest regulations and withholding tables. This practice is particularly complex for businesses with a dispersed workforce, as payroll laws tend to vary from one state to the next. For Chartrand, keeping up with US payroll regulations was an overwhelming task. "It's a challenge, particularly for a Canadian company, to manage payroll for each state," he says. "I needed a company with expertise in the various US payroll laws to avoid tax and payroll errors."

Expenses: Self-processed payroll can be surprisingly expensive. Business Week reports that "each year, 40% of small businesses pay the IRS an average penalty of $845 for improperly filing their payroll taxes." In addition, companies overpay federal and state insurance for unemployment by over a million dollars per year, creating a significant negative impact on a company's bottom line.

The Advantages of Outsourcing

Timesavings: Employers who use payroll outsourcing services have far less paperwork and spend just a few hours on payroll each year, unlike the estimated 60 hours most employers spend. This frees up an employer's time to focus on the actual business. For our client base, this benefit has been crucial, as they expect continued growth over the years to come, and outsourcing allows them focus on their core products and services without hiring additional staff to manage payroll.

Legal protection: Enlisting the help of a payroll outsourcing service can significantly reduce an employer's risk of legal errors, since staying on top of federal and state tax regulations is a top priority for payrolling companies. Knowing the rules and regulations on a state-by-state basis is a large process, and requires a great deal of administrative support. Outsourcing payroll will eliminated the need for keeping up-to-date with changing laws, and can significantly reduced your legal risk.

Cost reduction: According to Staples editor Mark Toft, "payrolling is typically the first service that businesses consider outsourcing - often at the advice of their accountants." Using a payroll processing service typically costs a great deal less than hiring an additional employee to handle payroll. As Toft points out, "Time is money: if the person who handles payroll spends 60 hours processing payroll each year, [a significant portion] of his or her salary goes toward managing payroll. If the business owner processes payroll, the cost may be two to three times that amount." Payroll Office of America agrees, citing "the value and cost advantage of using a 3rd party vendor versus hiring additional staff" as one of the key benefits of outsourcing payroll.

Allow us to become an extension of your office, by becoming partners with Payroll Office of America.