Trends for 2023: Choosing the Right Payroll Services for Your Small Business
More and more small businesses are moving towards payroll services. Using a service to process payroll has many advantages for organizations. For many businesses, payroll processing is the most complex and highly regulated part of their business. When you are doing payroll in-house, you need to allocate staff for the time-consuming process, ensure that your people and systems are up to speed on all the local, state, and federal regulations, ensure that all withholdings are accurate and on time, coordinate time and attendance tracking, and make sure that payment processing is completed promptly.
And that’s just the bare minimum.
Payroll processing is a business-critical operation and yet in most small and medium businesses, the ability to process payroll lies in the hands of a limited number of staff members. Payroll operations are vulnerable to continuity issues in the event of a leave or staff turnover.
Business owners who outsource payroll have safeguarded their business in important ways:
- Noncompliance and errors put businesses at risk for costly fines and lawsuits. Compliance is built into the process of payroll service. Payroll service providers stay up to date with regulations and trends.
- Your payroll processing is no longer subject to delays from staffing ups and downs, vacations, sick leave, or turnover.
- Businesses that contract their payroll services have access to state-of-the-art human resources payroll information systems that often tie together compensation, time tracking, withholding, and performance management all into a secure and supported platform.
- Most employees have high expectations for software and apps. They are accustomed to self-service and information at their fingertips. While out of reach for in-house payroll processing, payroll services provide your employees with access to all of their data including their wage and tax information, all while reinforcing the professionalism of your organization.
- Payroll services offer optimized payroll processes that integrate with other HR functions like benefits, time and attendance tracking, performance management, and onboarding. Streamlined processes reduce time and errors.
- Most services support remote and hybrid work locations. Employees can access the payroll system securely from any location with a computer or mobile device.
- These systems automate time-consuming processes like wage and tax calculations, payroll tax payments, filing of W-2 and 1099 Forms, I-9 verification, etc.
- When issues arise, you have a partner to support you, whether it’s troubleshooting your platform or keeping up with compliance.
Prepare for the Year Ahead with these Payroll Provider Trends
Payroll providers keep their fingers on the pulse of the labor market and ensure that their platforms are in good alignment with labor market trends. For the past few years, competition for employees has driven the need for payroll systems that work with remote and hybrid teams and offer flexibility in both compensation design and schedule and employee classification.
According to the November Jobs report, the economy added 263,000 jobs, the labor pool contracted and employees experienced wage growth. Unemployment stayed level at 3.7%. What that means for the small business owner is that competition for employees remains high.
We anticipate that, while the labor market is expected to soften in 2023, the flexibility that has been an incentive for new hires is here to stay. For many businesses, this flexibility is a win/win for business owners and their teams. Successfully accommodating this flexibility is where payroll systems thrive.
- New offerings like on-demand pay provide access for employees to earn wages outside of the regular payroll cycle. The fees for this service may be covered by the employee or shared between the employee and employer. There is a whole new body of regulations around pay on demand.
- Choosing your own pay schedule allows employees to plan payments close to their key expenses for better financial management.
- Daily pay is also emerging as an incentive for new hires.
- Fully integrated time and attendance and payroll software saves time and improves accuracy.
- Mobile device support allows employees to do what they need to do from wherever they are working, at home or in the office.
- Fully integrated expense reimbursement is highly attractive to employees.
- Secure, cloud-based self-service platforms empower employees and increase their satisfaction.
Contact Us Today
Switching over to a payroll service can bring innovation to your company, reduce risk, and meet your organization’s needs for flexibility, all while saving your business money.
With innovative technology, a knowledgeable staff, and personalized attention, TANDIUM Corporation can help you determine if payroll services are right for your business. TANDIUM Corporation specializes in serving the Human Resources, Payroll, and Benefits needs of small and medium-sized businesses and non-profit organizations. Contact us today to schedule a free initial consultation.