Industry data shows that companies are increasingly utilizing the services of third-party payroll providers. Some are opting for a full-service payroll solution while others are keeping some tasks in-house and outsourcing others. At the heart of it all are those relationships between employers and their payroll providers. A strong business relationship tends to create loyalty in both directions. That can only mean good things for both businesses and their payroll partners.
When a company decides to outsource payroll, that decision can be looked at in one of two ways. The payroll provider can be viewed as just another vendor offering a product or service from a distance. Alternatively, the payroll provider can be viewed as a potential business partner capable of helping a company grow and expand. Decision-makers within that company get to make the choice.
Making the latter choice encourages the employer and payroll provider to work together to achieve common goals. Such collaboration reaps very tangible benefits; benefits that are enjoyed by both employers and their employees.
Navigating Complex Tax Issues
One of the things that motivates small businesses to outsource payroll is the ever more complex tax environment at both the federal and state levels. Smaller companies and their payroll departments find they have trouble keeping up with tax compliance, potentially jeopardizing the future of their businesses. Outsourcing payroll is one solution.
When a payroll provider becomes a business partner, handling complex tax issues is part of the relationship. The payroll provider will not simply tell a client that changes have to be made; they will walk the client through those changes from start to finish. They will ensure the client is fully compliant; that all returns are filed and all tax payments made.
Navigating ACA Compliance
Another important thing is compliance with ACA regulations. We all know how difficult compliance has been on HR departments who do not understand the system, so a payroll provider offering ACA compliance becomes a godsend. The payroll provider with a business partner mentality does whatever is necessary to guarantee compliance for clients.
Offering Full Cloud Access
Lastly, when a small business payroll provider becomes a business partner, all things payroll are fully accessible in the cloud. The employer’s payroll department has access to all the information they need to do what needs to be done. Company management has access to snapshot data as well as details; individual employees have access to their own account information whenever they want it.
Offering full cloud access to payroll data keeps everyone in the loop. It nurtures an environment in which payroll problems are handled quickly and efficiently. It encourages employees to be active participants in their own payroll processing and tax withholding.
You could easily make the case that access is the one area in which the relationship between the employer and payroll provider is most visible. When the two consider one another business partners, full access is not a question.
Some Do, Some Don’t
Every industry has its players that don’t take client relationship seriously. Nationwide payroll provider BenefitMall says that their industry is no different. There are some third-party payroll providers who offer products and services at arm’s length and others who fully embrace the business partner mentality. It is up to employers to find a payroll provider they can work with.
When the payroll provider becomes an active business partner, great things happen. Employers can pass off their payroll tasks to a partner fully vested in their success while at the same time focusing their efforts on doing what they do best. Isn’t that the whole point of outsourcing payroll?