Payroll processing is vital for any business. If employees aren’t paid on time, their productivity goes down. Some may have a reason to skip work. Payroll processing is also crucial for maintaining compliance with the relevant revenue authorities. You must submit the statutory deductions and pay taxes to the relevant bodies to avoid trouble with the Her Majesty Revenue Commission.
Initially, many businesses used to complete payroll functions in-house. Unfortunately, processing payroll is time-consuming and repetitive work. Besides, you must keep up with the latest payroll regulations to avoid fines and penalties for non-compliance. Using a payroll bureau service, you can avoid all the hurdles and risks associated with payroll processing. Snow Technology specialises in managing your payroll functions to minimise repetitive administrative tasks and improve accuracy in payroll processing. If you are undecided on managing your payroll, read on for insights on how the payroll bureau works and the benefits for small and medium-sized businesses.
What Is Payroll Bureau Service?
A payroll bureau is an accounting service provider that eliminates repetitive admin tasks by providing outsourced payroll services. The service usually covers all payroll activities, including submitting taxes and statutory claims to relevant authorities, processing salaries and generating relevant reports for the business. Unlike software that requires in-house management, the payroll bureau takes care of the calculations involved in payroll processing and provides the necessary support for managing employees. Businesses don’t have to worry about payroll functions or compliance issues associated with processing employee salaries.
Unlike in-house payroll teams that can manage a limited number of employees, the payroll bureau service provides flexibility. You can use it to process payroll for any number of employees, whether your company is expanding or shrinking its functions. You don’t have to increase payroll staff when hiring new workers and reduce them when your business has financial constraints.
How Does a Payroll Bureau Work?
Once you understand a payroll bureau service, you need to know what it does for your business. As a small business owner, you likely have around ten employees in your business. While the workers are few, it can take up to 20 hours a week to handle the payroll paperwork for your staff. It takes longer if you are unfamiliar with the process or the statutory requirements for temporary and full-time employees. Some of the tasks that a payroll service bureau accomplishes include:
Streamlined paperwork
Every month, you have to find the employee file manually to process the payroll. If you pay your workers weekly, you repeat the same processes weekly to avoid making errors when processing payments. When you use a payroll bureau service, the software streamlines the paperwork for every employee. You don’t have to pull out personnel files and expose sensitive employee information. Most payroll bureaus use software to manage the payroll functions. Hence, they can store and transfer data files securely through the online portal, which minimises the risks of personnel files getting into the wrong hands. Besides, the software provides an audit trail, and you can track access to sensitive information.
Online payslips
Timely payments are important for every company. When you process payroll internally, emergencies at work can slow you down before payday, leading to payroll delays. Most employees need assurance that their salaries will be paid on time before committing to the role. Fortunately, the payroll service bureau can solve your payment issues and ensure workers receive their paychecks on time. The software makes it easy to share pay-related documents with employees by providing a self-service platform. Employees can access their payslips through a secure platform at any time. Workers can also review past salary figures by downloading previous pay slips. Using payroll bureau software also minimises printing and postage costs since the company doesn’t have to mail monthly pay slips and checks to employees.
Accurate reports
When you handle payroll in-house, there is a high probability that you calculate all the transactions manually. That means you have to calculate employee tax liability and make the appropriate statutory deductions. You also have to update the financial records with payroll adjustments to ensure annual reports reflect the payroll expenses. Using the payroll service bureau automates the filing of returns and provides a set of records for businesses. Payroll bureaus can generate financial records associated with payroll monthly and annually. It gives business owners access to vital information useful for decision-making.
Timesheets
As a business owner, you need a timesheet to process payments for workers. That involves daily manual data collection from the check-in and check-out records to keep up with hours worked. The process is tedious and can produce many errors. Some employees may also forget to punch in or out, making it difficult to calculate accurate salary payments. Payroll bureau software ensures accurate records of work hours since it automates data capture. It automatically records punch-in and punch-out times and generates timesheets for payroll processing.
What Are the Benefits of Payroll Bureau Service for Your Business?
Payroll bureaus handle many payroll processing functions beneficial to your business. Some of the advantages of a payroll service bureau include:
Peace of mind
When you use a payroll bureau service, you have peace of mind since you are assured that your payroll is done properly. You don’t have to worry about problems cropping up for trying to stumble through the process alone. Payroll continuity will also not be a problem since one payroll officer is not the custodian of the company’s payroll process. Companies that rely on one payroll officer often face issues when the employee is unavailable.
Cost reduction
Managing payroll in-house is expensive since you have to hire payroll workers to assist with the tasks that pile up in the department. For instance, you need a payroll specialist to handle the compliance and statutory deductions, and sometimes you require someone to manage the time sheets. That means you will incur additional expenses to cover the salaries and allowances for the additional workers. When using payroll bureau services, you can automate most repetitive tasks and eliminate the need for specialists. You will save money by reducing salary expenses on payroll specialists. You also reduce costs associated with printing and postage since workers can access financial documents through the online portal.
Compliance with statutory requirements
Payroll legislation and requirements are constantly changing, and businesses have to keep up with the changes. Unless you regularly attend industry events and payroll conferences, it is challenging to keep up with changes. Besides, implementing the changes can be difficult due to the lack of expertise. If you outsource payroll services, you don’t need to worry about compliance issues since the payroll bureau has access to expert knowledge. It will ensure you are up to date with human resource regulations, salary policies and tax laws.
Improved accuracy
When you process payroll manually, errors are common, especially when preparing timesheets, payslips and payroll reports. However, using a payroll bureau automates the generation of timesheets and online payslips. You will not find mistakes related to miscalculations or incorrect data entry. The bureau service will also ensure that the tax filing is accurate and the reports are up to date. You can generate annual reports automatically and receive updates on all payroll operations.
Saves time
Working on payroll is time-consuming and tedious since it involves repetitive administrative work. Using a payroll bureau saves you time and frees you to handle other important business functions. You also don’t have to deal with software changes since the payroll bureau will automate the process.
Conclusion
Payroll bureau service ensures that your payroll functions are handled properly with the right rules. If you want to cut back on expenses and have peace of mind regarding salaries, consider Quantum Bureau. You will receive an efficient and effective payroll service that keeps your business compliant with the regulations.