Should you refactor your Payroll Processing Model?

Much like the ongoing COVID-19 situation, the compliance and regulatory landscape changes every day. Businesses are finding it hard to navigate these new compliance changes, especially during the COVID-19 pandemic. If your business has been one of the lucky ones that have survived, then you surely know payroll is more critical now than ever. With that in mind, you may want to consider refactoring your payroll processing model.

Within just a few weeks after the World Health Organization (WHO) declared COVID-19 a global pandemic, an estimated 16 million workers in the US started to work remotely (according to a new survey by Slack). This new model of remote work and telecommuting has resulted in many changes to existing federal, state, and local employment laws. In these complicated times, maintaining a tight budget is a must, so here are a few things you’ll want to consider when trying to cut costs.

  • Is your current payroll processing model fully compliant, cost-effective, and productive?
If you have an in-house payroll processing team:
  • Are they skilled enough to keep up with the ever-changing compliance laws?
  • What’s the overall cost of your (remote) in-house payroll team?
  • Have you done a cost-benefit analysis?
  • Is your current team able to answer all the questions being asked by anxious employees in a timely and efficient fashion?

When unsure about the advantages of an in-house payroll model vs. an outsourced one, it’s best to do a thorough analysis of your exact payroll processing needs. Be sure to take all available resources into consideration as well.

If you decide to outsource your payroll processing, you’ll need to decide whether you plan on outsourcing your entire payroll to an external service provider or only certain payroll responsibilities. Remember, tax filing, benefits administration, workers’ compensation management, time & attendance, and unemployment insurance administration all fall under the umbrella of payroll management.

Most businesses outsource time-consuming and tedious tasks prone to errors (like salary calculations) to an external service provider. A miscalculated wage means an unhappy employee, resulting in a costly error that no business wants (or should need) to deal with.

Of course, some businesses decide to keep it in-house. If this is you then you’ll want to invest in proper payroll software so the productivity of your in-house payroll team doesn’t deteriorate due to additional tasks. Regardless of your business size, being able to manage and automate all of your expenses and income is important. Not only does it save your business time, but it also ensures the hassle-free, accurate management of employee paychecks.

There are many different payroll automation software options on the market today. The advantage of this is you have many systems to choose from, but the downside is that choosing the right one can be complicated. It’s important to do your research so that you can feel confident knowing your software of choice is equipped to handle both your business and team requirements moving forward.

A reliable payroll management platform will offer many different features to help make managing your payroll a pain-free process. Some common features include employee self-service, tax deductions/year-end reporting, and ACA compliance. These platforms can ensure your business remains legally sound by accurately calculating & filing both stand and federal taxes. They even create tax-compliant payslips, and these salary documents (such as W-2s or 1099s) are easily accessible to employees. 

 

Remaining up-to-date with the ever-changing compliance requirements is important as you see your business through the ongoing COVID-19 crisis. By using a platform such as UZIO, you can ensure your business is legally compliant and paychecks are processed on time!

 

Curious to learn more? Schedule a demo with UZIO today.

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