There are more than 500,000 users of Paychex payroll, employee benefits and human resources products. These are just small businesses and this is not surprising because SMEs require payroll provider that enables employee access tools, such as automated telephone system and employee access tools. If you are not familiar with payroll services, here are facts about the benefits of using payroll processing that you might find useful for your company.
First, managing 401k alone can be quite complex and time consuming for SMEs. This is more so when it is integrated with payroll processing. A third party vendor is the best option for SMEs because with payroll processing solution they can avoid making costly errors. Many small business owners are doing the payroll. This requires knowledge of accounting and payroll and of course 401K. Many small business owners simply do not have the knowledge and background to do the job. As such, a payroll processing solutions is the only way that they can actually manage 401K without having to worry about costly mistakes that can ultimately ruin their business. And that is not on 401K alone, payroll processing also includes payroll accounting. Payroll accounting will be automatically integrated into your whole accounting system so that there is no additional effort and time required to submit your payroll to your accounting system.
Second, when it comes to complying with tax requirements, third party sick pay, social security, fringe benefits, garnishment and child support, outsourcing payroll processing services offers significant help to SMEs and even large corporations. Similarly, compliance with tax and other regulations is another problem for many small business owners. And similarly, many small business owners simply do not have the time, the knowledge and the background to know and understand all the ever changing laws that they must comply with. Moreover taxation alone can be quite tricky and most of the small business owners require the assistance in payroll tax, especially those that do not have the financial resources to employ full time HR and payroll staff. Now, one of the benefits of using payroll processing is that it does all the work including tax and other areas where compliance is mandatory for any business. And since everything is automated, there is no room of mistakes. The third party payroll processing services company will ensure that your company complies with everything, from social security to benefits to even wage garnishment.
Third, payroll processing is easy to use both for the employer and the employees. For example, Paychex also has mobile app for iOS, Android and Blackberry. This will allow users to view and update payroll, benefits and other services using their mobile devices. Payroll processing therefore gives your employees the chance to take part in the management of their own records, including updating and checking their benefits and wages. This lessens the chance for mistakes in their payroll and records. Check out this site for more.