To remain competitive in today’s rapidly changing business landscape, companies, irrespective of their size or industry, unceasingly have to be on the lookout for ways to boost profits, increase efficiency, reduce costs, and improve compliance – Especially true if we look at the impact caused by the COVID-19 pandemic on businesses and the economy worldwide.
As a result of this economic downturn, businesses have started to look for cost-effective and flexible solutions to reduce expenses for non-core business activities. Moreover, with new sets of legislation being rolled out by governments and new obligations being imposed on corporates, the importance of compliance has also reached new heights. Hence, companies have no choice but to overhaul their internal systems and processes to keep up with the changing times.
The pandemic has also pushed businesses to implement remote workplaces due to the lockdown, which gave rise to the necessity of setting up employee interaction processes and digital workplace systems to ensure compliance.
How Outsourcing Payroll Processing Can Help During COVID-19?
One effective way for companies to achieve their goals, reduce costs, and ensure employees devote time to core competencies is by outsourcing business functions such as payroll, accounting, and HR functions.
By outsourcing payroll processes in HR functions, companies can focus on the core-essential tasks on hand instead.
So, what is payroll outsourcing or payroll process outsourcing services?
In simple terms, it refers to using a third-party service provider to handle the compliance and administrative functions of paying employees in a company. Generally, outsourcing payroll processing services include:
Depositing funds into employees’ bank accounts
Calculating central and state payroll taxes and making tax-withholding payments
Managing employee benefits
Withholding pension contributions
Direct deposits of cheques if necessary
Managing payroll records including forms and consents
Filing necessary government reports
Deductions from employees’ salaries in case of investments
Why You Should Outsource Your Payroll Processing During COVID-19?
Keeping the COVID-19 market-impact into consideration, let’s take a look at why you should outsource your company’s payroll processing:
Helps Reduce Costs
Outsourcing payroll processing has the potential to reduce operational costs when it comes to payroll staff.
Apart from high salary costs, companies also have to bear other expenses like sick leave, taxes, rent, training, paid time off, and other expensive overheads like maintenance and licensing fees of payroll management software, setting up departments and hiring other talents for the HR department.
With your company’s payroll management process being outsourced, you will just have to pay a fixed amount to the service provider, who will handle whichever HR functions you need support with, thus saving money in the long-run from extra costs in developing your own HR, especially considering the present distressed market.
Helps Ensure Payroll Compliance
Rules and regulations concerning employee payroll management have been tricky during the COVID-19 crisis, where legislation and regulations regarding employment and company capabilities were and are being challenged regularly.
At times like this, payroll processing errors by companies can lead to audits and penalties, which no company wants. Outsourcing payroll processing will let you focus on your company’s core operations while the hired experts handle payroll management and taxes.
Since it is the payroll service provider’s responsibility to issue and manage your company’s payroll, they also handle all necessary compliance functions related to employee payroll. So, when you outsource your payroll processing, you get additional time to increase your company’s core efficiency and also ascertain your company’s compliance obligations.
Improves Data Security
Payroll processing is considered to be a potentially risky and complicated business operation. Even with tenured employees, there is always a chance of funds embezzlement, identity theft, data breach, or even tampering with company records for personal gains. There are risks also associated with the in-house payroll software vis-à-vis the safety of the payroll data on the company’s network or server. If such scenarios take place, your company might face heavy losses.
Especially, considering the volatile market situation amidst COVID-19, outsourcing payroll processing seems to be a wise decision as third-party payroll service providers are liable to integrate state of the art security measures in place. They can even raise timely alerts in the case of payroll fraud, which reduces the need for 24x7 manual monitoring.
Outsourced payroll processing service providers invest huge amounts of money in setting up new data protection and storage measures, multiple storage locations, and offsite backup facilities. Hence, outsourcing payroll processing to third-party service providers stands to be a smart move.
Assists with Scalability
When you want your company to grow, it is important to consider outsourcing your payroll. Tested and trusted payroll systems will provide you with the scope and capacity that you require without the aggravation of regularly changing payroll processes and systems to meet the demands of an ever-expanding operation.
Experienced team of professionals who have handled such projects support you with standard procedures for onboarding and paying new employees more effectively with innovative solutions. Moreover, outsourcing your payroll processing and other HR functions offer you extra time and energy to improve other areas of your business, thus increasing both productivity and operations.
Improves Business Processes and Minimizes Risks
Constantly developing risk management procedures and improving business processes are time-consuming, and they also require additional expertise. Exactly where professional payroll processing providers come to your rescue.
Third-party payroll processing service providers add value to your business by implementing streamlined, standardized, and efficient payroll processes with high-level expertise, especially when the business processes and the risk management procedures have to be managed across multiple countries.
Why Outsource your Payroll Management Processes to TRC Consulting?
At TRC Corporate Consulting, our outsourcing model offers advisory and outsourcing services for dealing with the various functions of your business.
We understand that it’s challenging to deal with financial instability and maintaining operations during these difficult times. When you choose us as an outsourced payroll processes service provider, you are working with the best of professionals with extensive experience in the field.
With TRC as your payroll service provider, you can dedicate your company resources to deal with the core operational functions of your business to increase revenues, without any stress about managing your workforce.
With the need to maintain a good brand value amidst the predilections of COVID-19, your business needs can change in an instant. With TRC Corporate Consulting by your side, any of your requirements can be easily scaled on an immediate basis.
As your business continues to recover from the impacts of COVID-19, it is critical to focus on the core competencies of your business and not on back-office operations that take up your precious time. Contact us today to outsource now!