How the Shifting Payroll Market Is Impacting Business
Today’s payroll processes require a lot more from you than simply reading an employee’s time sheet and writing a check. You must know the patient’s tax with holdings, benefits and much more before you can manage their payroll. In addition, as the compliance rules change rapidly, you have to stay on top of them while also protecting all of the information in your system.
These requirements mean that most small businesses must adapt to an ever-shifting payroll environment in which they have to invest hours of time. The ripple effects throughout the business world mean that the impact runs far and wide. Consider these changes that are happening in the business industry thanks to a shifting payroll market.
More Companies Are Outsourcing
To ensure that they are staying compliant with the payroll regulations, many business owners are outsourcing their payroll operations. If you aren’t familiar with payroll outsourcing services, these companies can manage your payroll for you (usually for a flat fee or an hourly rate) so you have more time to manage and grow your business.
Payroll outsourcing companies allow entrepreneurs to free up the time and money that they would invest in an in-house payroll program, and redirect that to the operations required to scale. They can typically still access their payroll records 24/7 via a cloud or shared drive, but the documents are secure and private while also being freely available.
International Payrolls Are in the Spotlight
As companies expand their footprints and go global, their payroll programs must follow suit. And even if you’re familiar with the payroll regulations in your country of residence, it could be very challenging to understand how payroll works in another nation. This is another area where payroll outsourcing services can help, since they know the payroll rules across the globe and can adapt their technologies to different formats.
Payroll Is Going Digital
Ask a young staff member a question about their “pay stub” and you may be faced with a quizzical look in return. That’s because payroll has gone almost entirely digital over the past few years, with taxes and withholdings being handled via online forms and most payments happening by direct deposit. If your payroll system isn’t equipped for the digital age, it may require some significant investments for you to convert your technologies. In many cases, it could be beneficial in terms of financial investment and time to use an outsourced payroll firm than to try and take it on yourself.
Overall, the payroll landscape is quickly expanding and growing, and it’s up to you to ensure that your business grows with it. Make sure that your employees are protected and paid quickly and accurately by shining giving more attention to your payroll services.