Expense reduction is a way of business in the tough economy the United States is experiencing today. In order to keep companies afloat, doing away with unneeded services is happening every day especially among small businesses. Where a company may have retained an accounting firm to manage all aspects of the business, the management may spread out account payable and receivable duties and general bookkeeping responsibilities amongst existing employees leaving only tax preparation services to the accountants.
However, payroll duties need to be handled by a person or team experienced in government regulations, tax information, withholding sources, benefit deductions and a host of other complex duties involved in getting employees their paychecks. Again, a full service accounting firm can handle this, but at a much greater expense than one may be able to afford.
Outsourcing payroll services is the perfect solution. In fact, a great majority of companies, large and small, leave the payroll duties to the experts in payroll solutions. Companies such as ADP and Paychex have been around for years nationwide and have a wide-range of expertise in handling this function for the sole proprietor or major corporation. No matter how many employees, for profit and non-profit institutions can count on the reliability of payroll services companies to make sure payroll is calculated correctly and dispersed on time.
Payroll solution is not the only function that outside compensation services companies offer. Many companies offer services in other areas regarding human resources besides compensation. One of the most common outsourced functions a payroll solution company provides is background checks on new or potential candidates for hire. A range of services varying from basic contact information verification to criminal background checks to verification of work and residential histories can be provided.
Non-profit entities benefit from additional services payroll companies offer to a great degree. Non-profits are accountable for every single dollar that comes in and goes out. Yet, hiring a full service accounting firm is way out of the budget. Non-profit agencies are known to have small staffs, so having a separate human resources manager is not necessary. This outsourced payroll and human resource approach helps keep administrative costs down to allow a higher percentage of donation dollars to be used for the cause. In addition, these agencies use a wide assortment of volunteers who must be trusted to go into needy homes, work with under-privileged children, and assist large number of vulnerable populations. As trusting we want to be towards someone volunteering to help, today's world makes it impossible to screen every person willing to help for that lone ulterior motive. Background screenings are essential to keeping the beneficiaries of these organizations as safe as possible.
Benefits administration and other talent management functions are being outsourced to payroll solutions companies as well. Integrating payroll information with other services makes for cost efficient and technologically savvy operations as well. Healthcare and wellness, retirement, flexible spending accounts, rewards programs in addition to the complete compensation services offered makes sense to a business looking fulfill human resource management and administrative needs without having to hire full-time employees to take care of these functions.
Specific industries, such as healthcare institutions, are outsourcing all of their billing functions to payroll services companies. With the changes coming in healthcare with reform in which all record-keeping must be electronically filed by federal mandate, hospitals, outpatient surgery centers, and doctors' groups are sending all medical billing functions outside the office to concentrate on practicing medicine, not accounting.
Payroll solutions companies are becoming human resources solutions companies which offer payroll services. Whether a company wants to hire the payroll company as a whole human resources package or hire standalone service, both options are usually available.