Outsourcing: Key to Efficient Payroll Management

Outsourcing: Key to Efficient Payroll Management

Under the California wage payment system, all employers within the State must comply with laws on payroll management including the twice monthly payment of salaries, payment method, and coverage of employees. On top of this, a new law will expand salary disclosure as well as pay data reporting requirements. Effective January 1, 2023, employers are mandated to disclose pay scale for positions to applicants and employees and include that information in job postings. This new law also modifies and expands state pay data reporting for private employers beginning May 10, 2023. 

 

Importance of Payroll Management

This development compels businesses to focus more on payroll management. This function covers the all-inclusive process of computing employee hours and paying them; calculation of withholding taxes; organizing the company’s financial documentation; and handling employee information. The task is difficult, time-consuming, and full of accountabilities. Therefore, it is crucial for HR and Payroll personnel to oversee the entire system and become legally compliant.

Among the reasons to properly oversee the payroll process are the following:

  1. Legal Compliance – The filing of payroll taxes is covered by federal and state legislation. There are fines and sanctions for employers who fail to file on time.
  2. Employee Retention and Performance – Top performers will most likely transfer to other companies if they do not get paid well and as scheduled. Their performance will also depend on timely and correct payment of salaries. 
  3. Finances – The failure to properly manage payroll can adversely affect the company’s finances. The problems of getting penalized, dealing with bouncing checks, and paying bank fees can be cumbersome.

 

Efficient Payroll Management

Here are some pointers for companies on organized payroll management.

Educate and train employees on the latest rules, standards, and industry practices. The system is constantly evolving. Hence, HR and Payroll departments’ staff must be updated with the latest in payroll regulations, norms, techniques, and technologies.

It is also necessary to upgrade outdated software. Otherwise, this can result in inaccurate results. Using the out-of-date apps will just ruin the payroll process. Besides, outmoded software becomes complicated and causes security risks. A functional software allows authorized employees to conform with payroll schedules, ensure smooth workflows, and provide punctual reporting.

Streamlining the payroll system is a must. The payroll software must synchronize with the company’s accounting system. If not, this will pose many problems. Restructuring simplifies the whole process and help improve procedures. Many companies often neglect this aspect which leads to wasting time and resources, and incorrect data.

Business owners should consider outsourcing their payroll management services. This task is quite laborious and convoluted which can bring about issues if not performed the right way. Outsourcing is a more cost-effective option instead of hiring employees to internally do this job. Moreover, a dependable service provider is well-versed with all relevant laws and policies which enhances efficiency across the organization. Outsourcing will allow other employees to focus on core business operations that can help increase revenues and profits.

 

PCS Prostaff – Certified Solutions Provider

PCS Prostaff has been in the business of providing payroll management services for different business organizations in California and adjacent states during the last 20 years. As a service provider, it ensures ease of payroll processing as well as systematic management of company payroll. 

You can always visit our company website to see our competencies and know the services that we offer. Or call us at 866-413-4103 during business hours to set an appointment with our HR and Payroll experts.

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