Category: Payroll Services

Outsourcing Payroll is a good idea for your business

payroll services minnesota

Payroll is one area of your business that you need to function effectively and efficiently. In the case of a poor performance, fines and penalties may result for your organization. Paying employees incorrectly can lead to disputes and even lawsuits.

Paying staff on time and accurately is part of good payroll practice. Business owners, however, often find it difficult to balance priorities, and payroll is often overlooked in favor of profit-generating activities. The most efficient solution is therefore to always outsource your payroll to a qualified payroll service provider.

What is payroll outsourcing and how does it work?

A payroll outsourcing company essentially provides you with outsourced payroll  services. Payroll companies can handle all your payroll-related obligations, including creating new records, processing terminations, and calculating budget to actual.

This can only be done if you provide the payroll provider with employee and employer information. Usually, that is all you need to do, so you can concentrate on your strengths.

Why use a payroll service?

In order to grow your business, you want to focus your efforts on revenue-generating activities. Nevertheless, you have a responsibility to your employees as an employer. Outsourcing can be useful in this situation.

In any business, payroll is an essential function, but it can also be extremely complex and  time-consuming. Paying incorrectly may also have a domino effect. The result of an incorrectly calculated employee pay may result in a dispute that you must then resolve. In addition to this being a waste of your time, it can also negatively impact employee morale and productivity at work.

Moreover, missing payroll deadlines will result in fines and penalties, which will adversely affect your profit margins and cash flow. You can spend more time concentrating on your core services and lead generation by outsourcing your payroll.

The benefits of outsourcing your payroll function

Payroll operations need to be handled by an employee if you will not be doing them yourself. Your company will have to pay more salaries and benefits by hiring an employee.

It is necessary to purchase payroll software to facilitate payroll activities and deliver them efficiently. An additional cost could be avoided.

In addition, you should always use the latest version of software that  incorporates the new tax rates for the year. You will have to pay advancement costs in addition to your current costs.

Outsourced payroll providers usually offer much more cost-efficient service package fees.

Time saving

Payroll processing can be a huge administrative burden, as you need to consistently devote time to it each pay period, keep track of every payroll change and component, monitor all payroll submission deadlines to ensure timely submission, validate all payroll inputs to ensure an accurate result, and complete all legal paperwork.

These tasks can all be handled by an outsourced payroll company. Payroll outsourcing services require only that you provide the payroll data and approve the pay calculation results for each pay period.

It is unlikely that you’ll have the experience or expertise to run your payroll effectively unless you were a payroll provider previously. That means either you have to spend a significant amount of time learning the basics yourself or you have to train your employee to do so. In-house payroll employees will need regular training as government regulations change.

Outsourced payroll services provide expert advice and service. Eliminate staffing issues

The payroll process needs to be conducted regularly, whether weekly or monthly. You must have an in-house payroll team available every time payroll is due.

In the event that a payroll manager is ill or on annual leave, you’ll need to pick up the task or risk failing to meet payroll deadlines.

You will not only have to pay the costs of recruiting a replacement employee if the employee leaves, but all that knowledge is also lost.

This wouldn’t happen with a payroll service provider. You can be confident that your payroll will always be conducted on time by an expert, regardless of employee movements.

Overall, it may feel like a big decision to outsource your payroll department. However, it is the most cost-efficient and risk free option to ensure your payroll is conducted error free every time.

 

Union Payroll can be tricky. Let us handle it for you.

Quickbooks Training

We specialize in managing payroll for union shops. Using our experience, we provide comprehensive payroll solutions that are affordable for businesses that need to manage complex payroll systems.

Our internal processes and procedures enabled us to manage the complexities and rapid-fire changes unique to union payroll management.

Since union payroll in the Twin Cities is so unique, we are able to help businesses by being able to assist immediately. UptoDate Bookkeeping is dedicated to making the payroll processes seamless whenever management’s in-house person goes out on medical, maternity or disability leave or for an unexpected work influx that necessitates the hiring of new employees.

Employee net wages and payroll taxes are held in escrow separately by a national bank – ensuring you have peace of mind.

Clients can report hours easily by fax, email, text or online.

A Complete Union Payroll Solution

We provide union contractors with accurate, reliable and efficient services. By relying on our expertise, we eliminate the mistakes that cause workers to complain that their paychecks are wrong.

When your payroll is handled by just one person, and that person goes on sick leave, we will make sure payroll and tax payments go out on time.

The transition to our services is easy because we have a process in place. Our services include:

  • Payroll administration; setting all rates, differentials, overtime, assessments, and payroll taxes.
  • Management of fringe benefits.
  • Ensuring readiness for union audits
  • Worker’s compensation audits complete
  • Adjusted premiums verification of accuracy
  • Baseline reports and other payroll reports.

  Fringe benefits for union members

Employee fringe benefits can be tricky to manage since different unions and job classifications have different benefits.

We make sure these items are properly set up into the system so they will be correctly calculated.

Contact UptoDate Bookkeeping in Blaine MN for help with calculating holiday, paid time off, health benefits, training and pension deductions.

The Benefits of Outsourcing Payroll Services

It’s economical

Reduce overhead by removing the need to hire specialized employees by letting us handle payroll and the legal details related to it.

It helps you save time

We take care of payroll preparation, system updating, monitoring and maintenance, so you don’t have to enter data, research new laws, or worry about compliance.

Payroll Tax Filing is Worry Free

Don’t put yourself at risk by calculating and filing your payroll taxes on your own. Have professionals handle it for you. Payroll tax laws in the U.S., state, and local jurisdictions are changing frequently and becoming more complex.  Can you spare the time to learn how to keep up to date with all the rules?

The ability to focus on core competencies

Our team of experts lets you focus on your business’ core competencies.

Detailed Reports

With us, you get a wide variety of convenient and accurate payroll reports. You will get union reports, certified payrolls, workers’ comp reports, and much more for a nominal fee.

Our payroll solutions are designed to meet your needs.

When it comes to payroll service – there isn’t one size fits all.

 

Company Payroll Outsourcing Benefits

payroll services minnesota

Just like marketing campaigns, customer service, and sales; payroll plays an important role in a business. Payroll is not a bookkeeping task or a twice a month annoyance; it dictates how you will retain employees, reward them, or/and compensate them for the work completed. Remember, any miscalculations or errors may affect your business output and have dissatisfied and unmotivated employees.

Calculation errors are not the only concern one has to look at; there are others such as payroll regulations, tax codes, and others. for this reason, when a payroll calculation has errors, other areas will be affected and most likely going to be expensive for your business like the classification of employee and contractor W-2 forms Tax deposit, and its deadlines.

Outsourcing payroll does help small businesses eliminate problems such as mentioned above. Outsourcing offers a lot of benefits to a business and is considered a wise move to shift your business’s payroll task to a knowledgeable and reputable payroll professional.

1. It Saves Time

Handling payroll in-house demands time and attention to details. The demand for time increases when your company’s staff grows. Every pay date becomes a series full of checks and balances filled with sensitive data that demands full attention and varies from one employee to the next; while at the same time ensuring there are no errors. The time needed to handle this task is the time taken away from other important tasks that will help your business grow.

2. Reduces Overhead Costs

All successful business often looks for ways to minimize overhead costs with the aim of increasing profits. As a business owner, your time has a dollar value, which is linked to the revenue generated at any given time. Therefore, the time you are able to save every day, the money you will earn. With this in mind, think of all the time you will be able to save when you delegate payrolls to a third-party company. Doing this will eliminate calculating employee hours, paid time, deductions, sick leave, sign, tax prints, and much more.

3. Increase In Data Security

The truth is that there is a risk that comes with in-house payroll. A good example is identity theft. Employee records viewed by those who handle payroll may lead to identity theft or tamper with records for personal gains. Also, you have to consider the risk of payroll software.

4. Government Compliance Guarantee

A small mistake may leave you open to costly penalties and audits. On the other hand, because these regulations change constantly, the chances of staying up-to-date are low, especially when you are focused on growing the business.

5. Access Various Types Of Services

The truth is that even the most experienced accountants have a limited skill set. However, with outsourced payroll services, a business gets an opportunity to access different types of services and benefits that will help grow a business. For example, apart from tax calculation and standard payroll calculation, you get access to other types of services such as labor laws, contractor services, contract generation, access to health benefits, bookkeeping services, and workers’ compensation payments.

Conclusion

Professional payroll provider companies employ people who are knowledgeable in payroll processing, can handle complex regulations, taxes, government compliance, and more. This is why they are trained to do and the pillar to the service. For this reason, a majority of service providers offer a service guarantee, which leaves business owners worry-free when it comes to payrolls. Therefore, as a business owner, it is wise to save your time, and efforts by outsourcing your payroll. This will give you time to allow your business to grow.

Various Functions Of Payroll Management

Quickbooks Training

Quickbooks TrainingPayroll is an extremely important function of any business – whether you have one employee or an entire workforce. But payroll is a complicated process and involves much more than simply ensuring that each employee is paid on time. Payroll management involves various functions to ensure employees are paid correctly in compliance with government regulations.

1. Processing Paychecks

Processing paychecks is the primary function of payroll management. Make the smallest error in one paycheck and it will quickly become apparent just how negatively this can affect the entire workforce and operation of a business. A payroll manager therefore needs to ensure that each employee’s compensation is calculated correctly in accordance with their employment contract.

Aspects of compensation that need to be verified include:

– The net salary of an employee.
– Their hourly work rate.
– Compensation for overtime
– Commission
– Incentives
– Any other amount that is a form of income

Additional factors that need to be taken into account include:

– Vacation time
– Sick leave
– Maternity leave
– Compassionate leave
– Holiday pay

Common deductions that need to be factored in include”

– Federal income tax
– Health or dental insurance contributions.
– Pension fund contributions
– Repayment of a company loan
– Any other deductions or contributions that have been agreed upon between employer and employee.

Additional Bonuses And Perks

– A car allowance
– Housing allowance
– Mobile phone allowance
– Clothing allowance
– Entertainment allowance
– Any other perk or added incentive offered to the employee by the company.

2. Payroll Taxes

It’s not just your employees who are going to be seriously unhappy when your payroll is not processed correctly. The IRS receives 70% of its annual revenue from payroll taxes. Your company can face severe penalties that could be very costly for failure to pay payroll taxes or by paying erroneous taxes. The IRS penalizes businesses with billions of dollars every year.

A payroll manager needs to be aware of the different tax rates that apply to different regions in the country and make the correct deductions from an employee’s income. They also need to fill in various forms to record and document payroll taxes including W-2’s for every employee by the end of January each year. Form 941 also needs to be completed and submitted every quarter detailing employment taxes that are withheld for contributions. These documents need to be completed accurately and on time to avoid penalties. Training, skills and experience are therefore critical in a payroll manager.

3. Record Keeping

The Fair Labor Act requires that an employer keep accurate records for each employee that is not exempt. The following information in employee and payroll records are required:

– Full name and surname of employee and social security number
– Physical or residential address including the zip code
– Date of birth for employees under the age of 19 years
– Gender and occupation
– The day of the week and time when an employee’s work week starts
– The hours that are worked every day
– Total work hours that are completed each workweek
– Rate at which the employee is paid – hourly, daily, weekly or monthly including the amount.
– The regular pay rate per hour
– The total weekly or daily straight-time earnings.
– The total overtime income for each workweek.
– All deductions from and additions to employee’s wages or income.
– The total wages that are paid over each pay period.
– The date when payment is made and the pay period that is covered by that payment.

The FLSA regulations also require that all payroll records should be kept for a period of at least three years. Records showing wage calculations need to be held for two years – for example, work timetables, time cards and other relevant documents. The payroll manager should ensure that these documents are stored electronically and backed up to be inspected by the Department of Labor at any time.

4. Employee Accessibility

While it is a legal requirement for payroll records to be made available to the DOL, employees should also be granted access to their personal payroll information upon request. A secure online portal provides a means for employees to access their personal information including:

– Summary of benefits
– Summary of pension fund or 401(k)
– Summary of deductions and history
– Details of direct payments
– Time clocks
– Paid leave or time off work

UptoDate Bookkeeping solutions also provides employees with the ability to download and print documents such as W-2s, make changes to tax settings and make online payroll inquiries. This empowers your employees with the knowledge that they need when tax season arrives.

5. Simplifying Payroll Management

Payroll is complicated and a dedicated HR department to handle all the responsibilities that come with payroll simply isn’t in the budget for every company. Outsourcing payroll management and administration with UptoDate Bookkeeping is a convenient and affordable solution to provide business owners with the peace of mind that every aspect of their payroll is being handled expertly and in compliance with the required regulations.