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December 26, 2024
Business leaders generally know how to get good value by outsourcing select administrative duties to third-party specialists. According to a 2022 Global Outsourcing Survey, upwards of 70 percent of all companies outsource aspects of their operations to reduce costs. U.S. organizations reportedly spend $146.5 billion in outsourced expenses. That figure is expected to soar to $178.7 billion by 2029.
While reducing overhead remains a key success driver, opting for the cheapest service rarely delivers the detailed assistance companies require. The adage “you get what you pay for” holds true when working with a professional employer organization (PEO) that handles administrative duties such as workers’ comp administration and payroll services, among others. In fact, when decision-makers take a deep dive and compare certified payroll services, seemingly inexpensive off-brand providers can create more problems than solutions.
HOW DO DIGITAL PAYROLL SERVICES WORK?
As many industry leaders already know, outsourcing involves hiring an external firm to handle traditionally in-house tasks. Third-party specialists generally offer scalable rates that fit neatly into a growing business’s budget. Companies save money by reducing staff and office space, among other expenditures. It’s a positive trade-off because experts handle duties such as payroll 52 weeks a year without calling out or taking a vacation. Using secure internet capabilities, digital payroll services allow enterprises in one state to partner with a PEO in another to take on these and other services:
- Accurate Tax Withholdings
- Claims Management
- Employee Benefits Management
- Regulatory Compliance
- Risk Management
- Salary Adjustments
- Wage Garnishments
- Weekly Payroll Calculations
- Workers’ Comp
Pivoting to digital payroll services is not necessarily just for large corporations. Small and mid-sized organizations can also tap into this resource, putting them on a more competitive footing. Studies show that outsourcing payroll services saves companies of all sizes upwards of 50 percent compared to processing wages in-house. Bundling items such as payroll services with workers’ comp is one of the most productive ways to reduce operating costs.
benefits of outsourcing payroll processing
Entrepreneurs and CEOs must keep in mind that outsourcing payroll and other administrative responsibilities does more than merely save money. When you work with a firm staffed with experts in their respective fields, these are quantifiable and qualitative benefits you can anticipate.
Seamless Compliance
Issues such as the national minimum wage increases have companies across the country anxious. States such as California plan to hike their minimum wage standards, create different earnings classes and allow individual counties to establish sometimes entirely different policies. Top-tier PEOs take proactive measures to adjust payroll, workers' comp, and other items so that clients remain in compliance.
Consistent Accuracy
The notion that people are only human and make mistakes isn’t an idea that a top PEO adopts. When admin errors occur, paychecks can fall short and have a profound impact on valued employees. Your workers could suffer bank overdraft charges, have their credit scores drop, and face embarrassment. At SPLI, we assign your own Payroll Technician to oversee your needs and experienced professionals who provide consistent and accurate services.
Scalable Services
There are numerous organizations that experience seasonal highs and lows. When things ramp up, it’s not uncommon to add short-term staff members. In other scenarios, it may prove advantageous to add part-time help until enough growth warrants making productive workers full-timers. In these and other cases, the workload of payroll processors also increases. That could mean adding administrative positions and the added expenses.
When working with an experienced PEO, you can simply dial up more bandwidth during a busy period. The bottom line is that you only pay for the services that you need when you need them. Unfortunately, the proliferation of digital payroll services includes less-than-reputable outfits. Off-brand platforms may market themselves as highly professional, but their lack of experience and talent too often come up short.
Rise of Off-Brand Digital Payroll Services
There seems to be a clear link between what the mainstream media calls the “cheapest” payroll services and secure, precise, and industry-leading PEOs. If you are searching the internet in an effort to compare payroll services, you are likely to see articles pop up that are loaded with advertisements. To coin a phrase, these are usually “clickbait” marketing posts designed to drive traffic and sell goods and services. By contrast, trustworthy organizations provide other professionals with information to help them make informed decisions. Before opting into an agreement, compare payroll and other administrative tasks as well as the operation’s ability to deliver exemplary services.
Compare Payroll Services
No one disputes the fact that cost remains a primary factor when deciding on a digital payroll services provider. But it’s also critical to conduct due diligence regarding the level of professionalism, experience, and ability to save money by bundling PEO services. These are questions worth investigating when you compare payroll services and other administrative needs.
- Does the firm offer flexible pricing?
- Are there added features that come with standard payroll processing?
- Do my workers receive direct deposit and other conveniences?
- Does the PEO offer prompt customer support?
- Can I get a discounted rate by bundling payroll services with workers’ comp?
Lastly, ask yourself whether partnering with a PEO results in having a personal account executive who you can contact when the need arises. The difference between having a real person to talk to when business gets bumpy and a digital response matters.
SPLI Provides Expert Digital Payroll Services You Can Trust
At SPLI, we don’t believe in a one-size-fits-all approach. Our services are designed to be flexible and suit the unique human needs you and your business deserve. Once we hear from you, a personalized account executive will be in touch very soon for an initial consultation so we can put together your quote. Get in touch today for more info or to get started.
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