How a Payroll Solution Company Can Eliminate Your Payroll Challenges

Having to process payroll is a great problem to have. It means cash is flowing, and it’s your opportunity to compensate your employees for their hard work.

However, it’s also a very sensitive operation that can have major consequences when things go wrong.

Employees count on getting paid on time and regularly. In the age of direct deposits and automatic payments, even the smallest deviations in the amount and timing of an employee’s paycheck can cause serious headaches that they won’t hesitate to blame on you.

Aside from employee happiness, payroll comes with its own slew of legal and regulatory requirements that can’t afford to be missed.

To help unpack this issue, let’s take a look at the most common payroll challenges businesses face, as well as how a payroll solutions company can eliminate these problems.

Top 3 Payroll Challenges for Businesses

Every employer faces payroll challenges. Here are the top 3 that we most commonly see:

1. Complex Tax Regulations

Tax regulations can be intricate. They’re subject to frequent change and can even be different at local, state, and federal levels. It’s critical for businesses to understand and correctly apply withholding tax rates and deductions for each employee based on their individual circumstances.

Failing to accurately comply with tax regulations can result in:

• Penalties and fines: Fines for non-compliance with tax regulations can result in substantial penalties that eat into a company’s profits.
• Reputational damage: Failing to meet tax obligations can irreparably damage a company’s reputation, leading to a loss of trust among employees, investors, and customers.
• Legal issues: Legal actions resulting from non-compliance, including audits and investigations, can take months or even years and divert critical resources.

2. Time-Consuming Calculations

Payroll involves numerous calculations, including gross pay, deductions, overtime, and bonuses.

Getting these calculations right is critical to employee trust and tax compliance, but it can quickly become extremely time-consuming, particularly for businesses with many employees. 

Errors in calculations can lead to problems like:

• Employee dissatisfaction: Inaccurate or delayed paychecks will quickly damage employee morale, potentially leading to long-term dissatisfaction.
• Over or underpayment: Paying employees too much or too little may require costly administrative work to fix.
• Compliance risks: Employees receiving incorrect benefits or deductions can lead to compliance issues.

3. Data Entry Errors

Even when you’ve taken the time to do the calculations correctly, manually inputting data into a payroll system is prone to human error. 

Typos, transpositions, and missed entries can all cause serious problems, such as:

• Financial loss: Data entry errors can lead to incorrect paychecks, potentially causing a financial loss for either you or your employee — or both.
• Legal consequences: Serious and repeated data entry errors may seem intentional and lead to legal issues.
• Reputational harm: Repeated errors will cause your company to look haphazard and sloppy, causing employee distrust and affecting your organization’s ability to do business.

How a Payroll Solution Company Can Help

The challenges never go away, but you can control how you choose to meet them. 

While it’s totally possible to handle payroll on your own, hiring a partner can save you time and avoid costly mistakes.

Here’s how a payroll solutions company like BBSI helps businesses eliminate payroll challenges.

Streamlined Payroll Processing

Professional Employer Organizations (PEOs) leverage expertise, knowledge, technology, and manpower to streamline payroll processing for their clients.

• PEOs utilize advanced payroll software that handles complex calculations and ensures accurate entries. This significantly reduces the risk of human error.
• Payroll solutions companies will utilize their manpower and expertise to remain up-to-date on payroll compliance and tax regulations.
• PEOs have the time, knowledge, and tools to ensure accurate tax withholding and reporting on your behalf.

Enables Leadership to Focus on Core Business Activities

The average small business owner spends up to 25% of their time handling employee-related administration, including payroll.

When businesses outsource these functions to a PEO, they relieve themselves of the time-consuming tasks of managing payroll. With extra time and fewer distractions, business owners are free to direct their focus toward big-picture, strategic concerns like how to keep their business growing.

This freedom is potentially the biggest benefit of hiring a payroll solutions company. It allows owners to redirect their attention to critical tasks. Instead of getting bogged down by time-consuming payroll concerns, they can devote time to product development, customer acquisition, and market expansion.

How to Choose the Right Payroll Solutions Company

You’ll want to find a reputable payroll solutions company that combines the right experience, technological expertise, and affordability.

Here are a few factors to consider in your decision:

• Compliance, tax, and industry expertise
• Cost transparency and affordability
• User-friendly interface, accessibility, and responsiveness to inquiries
• Customization of services that enable you to scale
• Comprehensive data security
• Thorough support and training
• Seamless integration capabilities
• Interest in a long-term partnership

BBSI’s Comprehensive Approach to Payroll Solutions 

BBSI prides itself on refusing to offer a one-size-fits-all solution to payroll services.

We understand that every business is unique and faces its own challenges. We aim to ensure that the time-consuming, detail-rich tasks that can make or break your business are handled accurately and on time every time.

To accomplish this, we employ a comprehensive approach that starts with an initial strategy meeting where we work to understand you, your company, and your goals for the future.

Then, our team of dedicated professionals gets to work processing payroll, regardless of the size of your business or industry.

We’ll handle:

• Overtime calculations,
• Timecard information,
• Filing of federal/state returns,
• Direct deposits,
• and more.

Ready to eliminate your payroll challenges? Get in touch with your local BBSI payroll consultant today.