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How Your Business Can Benefit From Outsourcing Payroll

How Your Business Can Benefit From Outsourcing Payroll 0

Outsourcing companies play a crucial role in the growth of businesses. It’s now commonplace to see major players in the marketing world commission outsourcing firms to handle core and non-core responsibilities.

With the complexities and intricacies involved in payroll, a lot of companies and businesses are now resorting to a permanent solution: hiring payroll providers. This decision, over time, has proven to be a wise and sustainable choice.

If you’re wondering whether your business will benefit from a payroll outsourcing service like Consultant In-A-Box, you’ve come to the right place.

Benefits of outsourcing payroll

Below are some key areas your business will benefit from payroll outsourcing.

Saves Time

When it comes to businesses, time is directly proportional to money. A lot of time goes into payroll processing that it is often difficult to keep up with other core responsibilities.

Manually processing payroll requires undivided attention. An employee’s net salary needs to be calculated accurately, deducting taxes, pension and healthcare, and including several allowances. And that’s just a single employee.

The action needs to be repeated for the remaining employees, and that can be mentally exhausting. Outsourcing this vital responsibility to payroll providers will save time that can be channeled into a venture that is more productive.

Reduces mistakes

Another benefit of outsourcing payroll providers is that administrative and financial mistakes are reduced to the barest minimum. For instance, when an employee’s work hours aren’t imputed correctly on the timesheet, it may result in a salary decrease (which affects the worker negatively), or an increase (which affects your business).

When an employee receives less of their deserving pay, they may decide to seek resolution in the court of law, and this invariably impacts your business.

To refrain from making costly mistakes like this, the expert service of a payroll provider is necessary.

Improves data security

When it comes to payroll processing, there are so many dangers involved. Some of them include payroll fraud (which affects 27% of all businesses worldwide), identity theft, and embezzlement of funds.

Even if you’re confident about the security of your payroll software, one can never be too confident in matters that pertain to money.

Contracting a payroll outsourcing service like Consultants In-A-Box will ensure that your company’s data is well protected. Leading payroll providers make use of state-of-the-art tech to store payroll information that cannot be breached.

You can rest assured that your business won’t suffer a financial hit internally when you hire a payroll provider.

Leverages on modern technology

Everyone is saving their data information to cloud-based systems, and it is only necessary to hire a payroll provider with a cloud-based system. Modern payroll outsourcing services utilize these systems to foster data security and manage information.

This invariably means increased payroll efficiency, reduced financial costs, and hitch-free processing of payments.

Offers Professionalism

Payroll outsourcing services are leading experts in the field of payroll processing. These companies understand and navigate the many complexities in payroll and give their best to clients. Some of their impressive responsibilities may be tasking for the administrative officer in your firm. They include:

  • Adhering to federal and state tax laws.
  • Accurately deducting social security, FICA, and healthcare fees.
  • Updating W-9 forms to accurately make tax deductions.

Ensures compliance with government laws

It’s difficult to keep up with all the federal and state laws pertaining to employee allowance. Your business needs to remain on the side of the law always. That’s why it’s so beneficial to hire the services of a payroll outsourcing firm.

Consultants In-A-Box is a leading payroll outsourcing service whose mission is to provide lasting solutions to the financial needs of your business. Do contact us today.

 

How to Protect Your Business Against Fradulent Payroll Providers

How to Protect Your Business Against Fradulent Payroll Providers 0

Many businesses, small or big, are suffering from a different kind of pandemic today: payroll fraud. A record 27% of businesses the world over are currently under attack from this accounting fraud. While this fraud can be typically traced to workers with ill intentions working within a business, it is often advised to hire the services of a professional payroll provider.

Payroll providers are expert agencies that offer effective and safe payroll processing for businesses. While they are tasked with navigating all the intricacies involved in payroll systems, can they really be trusted with your company’s financing?

While there are reputable payroll providers like Consultants In-A-Box out there to entrust your business payroll processing, we can’t help to disclose that there have been a couple of bad eggs in the business, soiling the hard and success of good payroll outsourcing companies.

In this article, you will learn how these fraudulent payroll providers operate and how you can prevent your business from one.

Causes of Payroll Fraud

Fraudulent payroll providers cripple the finances of many businesses through the following methods:

  • Ghost employees - If your business is fairly large, it is tasking to know all your employees by name or the actual number of your staff size. Fraudulent payroll providers exploit this common flaw by creating a fictional worker(s) and inputting their information along with genuine workers on the payroll list. The company ends up paying that ghost worker’s salary which is collected by the payroll providers. In some cases, these providers may use the names and details of former employees to trick businesses into paying them.
  • Falsification of timesheets - Some fraudulent payroll systems deliberately increase the number of work hours by a staff (whom they must’ve connived with) to have a bigger paycheck.
  • Payroll impersonation - Fraudulent payroll providers may ask your employees to update payroll data through a phishing website made to look genuine. They’d steal this information and make alterations to it on the genuine website.
  • False commission - It’s commonplace to see some businesses giving commissions to employees. A deceitful payroll provider can deliberately increase the commission of workers to make them earn a larger pay. This stunt is pulled by illegally increases the target sales and other marketing bonuses.

With the aforementioned ways in which businesses can be affected by fraudulent payroll providers, how do you ensure your business is well protected?

How To Protect Your Business From Fraudulent Payroll Providers

The steps below will guide you on how to prevent payroll fraud from scandalous providers:

  • Properly vet payroll providers. This is the important step to make before hiring a payroll provider to handle your company’s payroll. Ensure that they’re adhering to the regulations of the SEC and can also provide proof of their liability insurance. Also, ensure that their customer service is top-notch. Your business deserves nothing short of the best.
  • Check out reviews. When selecting a payroll provider to work for your business, you should the internet for user reviews. Reviews reveal a lot about a payroll provider you’re planning to work with.
  • Request for further certifications. You need to request for further verification from governmental agencies before hiring a payroll provider.

We at Consultants In-A-Box take pride as permanent solutions to your business’ payroll problems. We combine professionalism with a wealth of experience to deliver the very best for your employees and business. Do reach out to us today.

Six Payroll Challenges For Small Restaurants

Six Payroll Challenges For Small Restaurants 0

Managing a small restaurant is no easy feat. One would be dealing with several things all at once; coming up with strategies to drive sales, training employees on great customer service, and implementing customer reviews, and a more pressing issue: payroll processing.

Many small restaurant owners are having a difficult time meandering through the complexities of managing payroll, unlike other small businesses. You can’t afford to make mistakes while managing payroll. Mistakes often led to paying penalties which may affect your business.

You don’t want that.

In this article, we discuss some of the various payroll challenges for small restaurants and cafes.

Minimum Wage and Overtime.

Since 2009, the federal minimum wage has remained $7.25 per hour. However, states, cities, and counties have implemented a much higher minimum wage for employees. If the state and the federal minimum wage is different in the state your business is situated, you’d have to pay your employees a higher rate.

In the event that an employee exceeds 40 hours per week, he or she must be paid one and a half times more than their regular pay per hour.

When it comes to overtime, a lot of restaurant owners get it wrong. For some employers, calculating overtime fees of workers is still a challenge. There’s a seemingly overtime wage difference between tipped and untipped employees.

  • For tipped employees. The overtime wages for a tipped employee is ascertained from the full minimum wage.
  • For salaried employees. The overtime wages for a salaried employee is calculated on how his or her salary is set up and how many hours they worked.

Meals as Fringe Benefits.

Most restaurants offer meals to their workers, especially kitchen staff, who are always on duty. The IRS regards this as a fringe benefit. As a restaurant owner, you have the ability to exclude these meals from your worker’s wages. As long as the meals are provided to your workers on the premises, and they don’t go elsewhere to look for food, you can deduct the meals.

Most times, restaurant owners get this mixed up and this poses a problem for their business. However, it would be unreasonable to place charges on doughnuts, coffee, or any other meals taken by employees working overtime.

Too Many Forms.

Another payroll challenge restaurant owners face is the number of paperwork piling up on their desks daily. Having to sort out of the onboarding process for new employees, processing payroll, and of course, staying on the side of the law regarding tax laws.

When you consider the different wages of workers, expenses made, and the revenue flowing in, this can pose a serious payroll challenge for owners of small restaurants. It is highly recommended that you use payroll software or hire the services of professional payroll providers to handle all the complexities of tax and payroll.

Possible Discrimination on Job Applications.

As an employer, there are certain questions you’re prohibited to ask a potential employee, in order to not face lawsuits. Some of them include:

  • Asking about previous arrests or convictions.
  • Asking about their age.
  • Religious holidays
  • Disabilities

Offering Parental Leave and Paid Sick.

One payroll challenge small restaurant owners face is the understanding of how sick and parental leaves work. An experienced payroll provider is what your business needs if you cannot handle this issue yourself.

Payroll Fraud.

Payroll fraud is one of the crippling challenges of small restaurants. If unchecked, your business could take a serious hit. Some employees with ill intentions may illegally log in time which they never appeared on their timesheets. Handing out this responsibility to a payroll provider will save your business in the long run.

Should Small Businesses Outsource Payroll

Should Small Businesses Outsource Payroll 0

It is commonplace to see small business owners tackling a lot of issues that demand equal attention, and at the same time. Coming up with strategies to boost business sales and productivity, prepping your staff, and taking charge of your finances—especially managing your payroll—can be exhausting.

That’s why businesses are now leaving this task to professional payroll providers. If you’re wondering whether it’s a wise business decision for your small business to outsource payroll, the answer is a resounding yes.

In this article, we will discuss what payroll providers are and the benefits of outsourcing one for your small business.

Who are Payroll Providers?

Payroll providers are expert agencies hired by businesses to handle their payroll processing in a professional and hitch-free manner. It is very vital, even as a small business owner, to outsource payroll.

Benefits of Outsourcing Payroll.

Outsourcing your payroll to payroll providers come with many benefits. Some of them include:

Increased productivity

Time is money, even for small businesses. And when it comes to payroll, it is a time-draining exercise. Having to calculate a worker’s allowances and taxes, deductions, overtime, paid time, and ensuring that state and federal regulations are strictly adhered to can be really stressful.

However, when you outsourcing payroll to an expert provider, like Consultants In-A-Box, you as a small business owner will have more time to focus on other strategic tasks that will boost your bottom line. Also, this will also aid the employee in your accounting department to channel their energy to another productive venture for your business.

The staff size of your business doesn’t matter. When you think about the time you’d spend in preparing W2s, the importance of outsourcing it to payroll providers becomes crucial.

Reduced mistakes

When it comes to payroll processing, mistakes may arise, especially when it is done in-house. Payroll mistakes impact your workers and your business. The IRS also frown frowns at payroll mistakes and would not waste time issuing penalties to you.

As a business owner, you’re responsible for whatever happens, good or bad. And that’s why it’s important to contact your payroll to experts who are equipped with the knowledge of federal and state regulations and the changes in tax rates. More so, you need a payroll provider that will be able to implement these figures in your payroll effectively.

Team of experts

Because new tax laws and regulations are made almost every year at the state or federal levels, your business must continue to ensure that it is on the side of the law. This is why you should outsource payroll.

Payroll providers are experts in the business of accounting and HR. These experts are well aware of the ever-evolving intricacies of payroll, and you can always count on them.

Eliminates payroll fraud

Currently, payroll fraud affects 27% of businesses worldwide. It is reported that businesses with less than 100 employees are more likely to be affected. Even if you trust your workers, there’s a potential risk of being defrauded from identity fraud, embezzlements of funds, ghost employees, illegal filling of timesheets, and many more.

You may not have the time to properly and closely monitor your workers in the accounting department. But you can invest in a more sustainable solution: hiring payroll providers.

Reduced costs

When you think about processing payroll in-house, you’d have to factor in a lot of things. Some of them include calculating payroll, printing, disbursing paychecks, keeping up with tax laws, generating reports, etc. This often results in spending more money than you bargain for.

When you compare it with payroll outsourcing costs, you’d see that it is more cost-effective to hire a payroll provider.

Consultants In-A-Box is a leading payroll provider, tasked with delivering the best payroll solutions for small and large businesses. You’re just a click away from transforming the financial aspects of your business. Reach out to us today.

How to Choose a Payroll Provider

How to Choose a Payroll Provider 0

Ensuring your business maintains a proper and effective payroll strategy is essential to the long-term success of your company. While many owners struggle to do this themselves, a payroll service provider can help take the weight off your shoulders.

You’re the business owner. You shouldn’t have to worry about managing payroll -- that’s someone else’s job. The more time you spend worrying about payroll, the less time you spend building the future of the company.

Investing in a payroll provider helps build employee loyalty and shows you take the culture of your business seriously. Since every provider claims to be the best payroll provider for small businesses, we’re going to discuss some of the major things you should look for in a payroll provider.

Here are our top-10 characteristics of an effective payroll service provider!

1. Payroll Taxes

There are a lot of reasons why you might consider a more streamlined payroll strategy, but one of the most important is automation. Without it, you open yourself up for errors when deducting payroll taxes because most business owners aren’t experts when it comes to this.

It’s not your fault, you have better things to worry about. That’s why payroll software should be equipped to do this for you with extreme precision. You’re not a tax professional and you shouldn’t have to be.

Look for software that is regularly updated, as well as one that supports 401(k) deductions, HSA deductions, and wage garnishments.

2. Tax Filing Errors

Every business owner understands that perfection is always the goal, but it’s rarely the outcome. Errors happen, mistakes exist, and no one -- not even software -- can run away from them. Unfortunately, that won’t stop the IRS from charging you a penalty or your employees from getting restless.

In the event your provider makes a mistake, it shouldn’t be labeled as your fault. Always ask your provider what happens when an error occurs and whether or not they will take responsibility for the error.

3. Security

Anytime you’re dealing with payroll, you’re handling extremely important and confidential information. Whether it’s an employee’s new hire paperwork or earnings, you have to be confident your provider isn’t prone to security attacks.

It’s best to work with a provider that limits work with overseas companies to prevent the risk of hacking. They should also have a proactive plan in place for when an attack occurs and how to eliminate the threat immediately -- ideally before it strikes.

4. Paycheck Processing

All employees receive a paycheck for the work they complete, but not all employees are paid similarly. Some are paid a salary, some are hourly, and some are paid a fixed-price amount for their work. Even then, some employees are paid different amounts depending on experience.

When choosing a provider that’s right for you, it should have no problem keeping up with all the different employees you’ve hired over the years. If it can’t keep these things organized for you in an efficient manner, find a new provider immediately.

5. PTO & Vacation Days

Manually tracking days off, vacation days, paid time off (PTO), and sick days opens the door for more errors and mistakes. The last thing you want is an employee taking off more time than they’re allowed to due to a counting error on your end.

When looking at the best payroll providers for small businesses, they should have the capability of tracking these days off, as well as a way for employees to easily request time off. Having everything in the same place means you only have to do a brief review instead of blocking out a whole day to determine the schedule for the week.

6. Employee Access

A truly effective provider makes it easy for any employee to access their account at any time of the day. Having this option available to an employee avoids any delays when that employee needs a pay stub or is curious about the amount of time they can request off.

Much like an owner should have these things easily available to them, so should the employee. They experience life changes frequently, so having access to their account can also help with changes of address and changes to new hire paperwork.

7. Payment Options

Did you know 4 out of 5 employees prefer direct deposit as their payment method of choice? Having a provider that supports this payment option is critical to keeping your employees satisfied and also leads to less frustration on your end.

At the same time, there’s still that 1 of every 5 employees that prefer a physical check. With that being said, your provider shouldn’t leave them in the dark. Having the ability to change payment options and having several options available to the employee is essential.

8. Integration

Most business owners have their own way of keeping track of their payroll, accounting, and other financial aspects of their business. Your provider is sure to bring some new concepts and changes to the board, but that doesn’t mean you should have to do a complete overhaul of your process.

Your provider should easily integrate into your current operation and shouldn’t impede on anything happening in your company at that time. A seamless transition means fewer errors from the get-go, which is crucial.

9. Customer Support

It doesn’t matter what product or service you’re talking about, there comes a time when you need customer support to explain something or answer a question. That’s why customer service is so important when searching for a payroll service.

The right service provider won’t have you listening to music when you call them. Instead, you’ll hear a real human’s voice ready to assist you immediately. No strings attached and no distractions, just pure customer support.

10. Costs

When getting started with a service provider, you don’t want any surprise expenses along the way. After all, that’s one of the reasons why you’re switching to a service provider.

To ensure your provider doesn’t try to overcharge you or stay quiet about hidden charges, you should understand what the fees are the following things: tax filings, W2s, 1099s, changes, cancels, direct deposit, check printing, employees that don’t work in a given time period, integrations, PTO tracking, HR features, and annual fees.

You’ll also want to ensure you understand the pay scheduling and whether or not the fees are subject to change.

Now that you have a much better idea of how to find the best payroll providers for small businesses, it’s time to put that knowledge to use for your business. If you’re ready to get started with a provider that meets your needs, contact Consultants In-A-Box today.