Payroll processing is one of those aspects of running a business that most employees and business owners would prefer never to think about. Like the referee at a football game, people only really notice them when things go wrong.
That’s especially true for small business owners. When payroll goes awry, they may spend their weekends fixing the problem personally.
As a trusted advisor, you may come across small business owners with inadequate payroll processing. They may lack knowledge when it comes to laws and regulations, spend too much time on the process, and use outdated technology. All of which can risk major employee dissatisfaction.
For these companies, partnering with a PEO could be just what they need. In this guide, we'll explore the challenges SMB owners face with payroll processing and how the right PEO can provide a hassle-free solution.
Let’s first outline some common payroll processing problems your clients might face. This way, you’ll know what to look for.
Small business owners often struggle to keep up with ever-changing payroll laws and regulations. Mistakes in tax filings missed deadlines, or misclassifications can result in hefty fines and legal troubles.
Payroll processing involves numerous administrative tasks, from calculating wages and withholding taxes to generating reports and managing direct deposits. These tasks can consume a significant amount of time that could be better spent on core business activities.
Manual payroll processing increases the risk of errors, such as incorrect wage calculations, missed deductions, or late timesheets. Even minor mistakes can lead to employee dissatisfaction and potential compliance issues.
Small businesses often lack access to advanced payroll software that can streamline payroll processing and improve accuracy. Investing in such technology can be costly and may require specialized knowledge to operate effectively.
Payroll errors, delays, or lack of transparency can lead to employee frustration and decreased morale. Consistent and accurate payroll is crucial for maintaining employee trust and satisfaction.
If you notice your clients struggling with the problems above, they may benefit from partnering with a PEO for payroll processing. Here are 5 ways PEOs accomplish this:
PEOs employ experts who continually monitor changes in payroll laws and regulations at the federal, state, and local levels. These experts:
A PEO's streamlined payroll processes ensure that payroll operations run smoothly every pay period, reducing delays and improving overall efficiency.
A PEO will take over the burden of payroll management, including wage calculations, tax withholdings, direct deposits, and report generation. With these tasks off their plates, business owners and their teams can dedicate more time to strategic initiatives and big-picture problems like growing their businesses.
As the business grows, the PEO can scale its services to match the increased payroll demands. This ensures businesses have access to the right amount of support without the need for additional internal resources.
PEOs use automated payroll processes to eliminate much of the need for human input, drastically reducing the possibility of errors. This means more accurate and reliable timekeeping, benefit calculations, tax withholding, and overtime pay.
They also make use of payroll professionals who work directly for the PEO. It’s their job to stay on top of industry best practices and ensure cost savings. If issues do occur, they’ll be around to take responsibility for the problem and ensure a prompt resolution.
The right PEO will provide access to advanced payroll software that might be cost-prohibitive for small businesses to purchase and maintain independently.
These platforms streamline all aspects of payroll administration and offer a range of features like:
User-friendly technology eliminates any learning curves, making it easier for both employers and employees to navigate.
Each company might have unique payroll processing needs, but there’s one they’re all going to have in common: checks need to go out on time and accurately every pay period. It’s not only critical for employee morale but essential for employers to maintain the trust of their workforce. SMB owners who struggle with this may find it to be a massive source of stress in their lives.
A PEO will take this stress away. They can provide:
Businesses that lack solid payroll processing can encounter serious problems that pile up quickly. Rather than using their valuable time to grow their business, SMB owners can get bogged down in ensuring accurate calculations or correcting errors.
CPAs, brokers, and other trusted advisors who partner with BBSI can help their clients access advanced HR and payroll processing software. We help businesses efficiently manage their payroll, improve timekeeping accuracy, centralize data, and provide support that reduces the stress SMB owners live with.
Our full-service payroll and suite of services can also help with administrative payroll tasks like W2 administration, ACH & EFT processing, and even garnishments.
If you’re interested in helping your clients drive growth through streamlined payroll processing, contact a local BBSI representative today.