The practice of outsourcing routine business functions like Recruitment, Technical Support, Finance & Accounting, HR Management and Payroll Processing have increased in the recent years, since the onset of the outsourcing and off-shoring industry. The public sector is known to face tremendous difficulty in effectively managing their administrative and operational functions, hence they are often termed as slow and backward because of the inefficiency in managing resources systematically. Here, we need to cut them some slack because, after all, they are serving the nation, so it is unimaginable to think of what their duties and responsibilities include. This is where we come into the picture, the vendors and suppliers that offer outsourcing services. At Kaloupi, we are focus-driven at providing solutions and services which minimize business operational issues, maximize your productivity and profits.
Here’s why you should consider outsourcing payroll processing:
Saves time and money – Usually, you have a team of 3-4 people processing payroll in mid-sized to large organizations. Processing payroll does require a great deal of time, accuracy and “attention to detail”. It is a tedious task better left to the professionals who know about tax reporting and remittance, tax filing requirements, calculation of payroll, compensation and wage rules and so on. Outsourcing this function saves a huge chunk of time and money where the third party vendor is held liable for error free reports.
Exposure to new technology and professional expertise – Whether or not the company has the latest software version or technology to process payroll in an efficient manner, it is quite an expensive affair. By outsourcing payroll processing, you are relieved of the stress of investing in ever changing technology and software upgrades by having the third party agency do that for you.
Reduction of risks and enhanced security– It is only fair to say that processing payroll involves major risks like tampering with company data and funds. Even using the company’s in-house payroll software can raise questions like How secure is the payroll data on the company’s server? Do business owners have the time to keep a close watch and monitor unethical activities? A good payroll services provider will invest in latest technology systems and software for storing and protecting data.
Drives focus to core business objectives – With one business function being looked after by a reliable resource, you have the time to shift your energy, focus and attention to your main business objectives that generate revenue.
Saves you from the “Run-around” – Direct deposit saves ample amount of time and money, rather than the hassle of a pay check. Employees are satisfied with direct deposits as it is convenient for them. The bigger benefit of direct deposit is that is saves you from making continuous trips to the bank. Confidentiality of data or information is also another significant advantage of outsourcing your payroll function.
STEPS IN PAYROLL PROCESSING:
This consists of two parts:
A. Collecting Wage Information
It involves the following steps:
1) Instruct all employees to complete a W-4 form so that you can properly calculate federal tax withholdings on wages.
2) Gather all of the payroll information for each pay period.
3) Calculate gross wages for each worker.
B. Computing Withholdings From Pay
It involves the following steps:
1) Determine the proper withholding amount for federal income tax
2) Deduct other required amounts from gross pay
3) Compute other deductions and submit payments to taxing authorities
KALOUPI has been providing Payroll Processing services to several of its Federal customers and has over a decade of experience in the same. With expertise in professional Payroll Software like DELTEK, PAYLOCITY & PEOPLESOFT, KALOUPI can handle the Payroll of your Employees and Contractors efficiently and yet in a cost-effective manner.