Oftentimes a business owner is unprepared to take on the task of processing their employee’s payroll. This can be for a variety of reasons, including business growth, or lack of understanding the complex laws relating to proper payroll processing.
If you are unfamiliar with these intricate laws, then you could be putting yourself and your company at risk, or at minimum you might find yourself faced with some substantial penalties for not filing the proper reports in a timely manner. Ut velit sit accusantium ratione omnis quaerat accusantium accusantium.
While there are multiple options to choose from, you’ll likely find that the most common choices would be to outsource your payroll responsibilities to either a payroll outsourcing company or a PEO. Below we will look at each one to help you understand the differences. I will also walk you through some of the advantages and drawbacks of each of these outsourcing vendors.
Simply put, this is a company that you hire to process your employees pay using the data that you submit to them. This can be done on a weekly, biweekly, semi-monthly, or monthly schedule.
A payroll company will calculate the employee’s gross wages and deduct their tax liability according to their elected withholdings. From here you will find vast differences depending on the payroll company and your agreement with them. Therefore it is important to make certain that you have a clear understanding of who is responsible for items like:
So, the bottom line is that it depends on what you’re looking for in terms of a complete takeover of responsibility or simply someone to crunch the numbers and handle the tasks that you agree on. But, make sure to do your research and know who you’re dealing with and that they have an established firm reputation.