For companies that want hands-off payroll operations, third-party companies are willing to take over all aspects of payroll processing. This includes handling either employees or contractors and making sure that all workforce finances are in impeccable order.
One of the biggest advantages of using a professional payroll service is that managers and leaders simply don’t have to worry about the details. This frees them up to focus more on core operations and growing the business. It can be a very efficient way of delegating tasks and outsourcing time-consuming busywork.
Professional services also give more assistance than what can be found in a software package. One of the best examples is in the area of tax filing. An annual tax filing for businesses is a complicated affair — it’s not something that’s easy to do only on paper. It’s very relational and can involve a lot of decision-making. With that in mind, professional services are able to offer more assistance than software packages, which require a lot of strategy and strategic use by client companies.
One of the biggest downsides of hiring a payroll service is the cost. Companies that can get by with payroll software and in-house operations can save a great deal of money.
In addition, companies can use subscription pricing models to get access to payroll software at affordable prices. They can budget these subscription prices into their operating costs. Some companies also offer bundling. For instance, Intuit is one of the most popular business payroll systems that offers bundled services for other kinds of accounting work that help businesses save even more money.