How Does Managed Payroll Outsourcing Work? 

Businesses decide to outsource the payroll function for many reasons. Maybe they don’t have the trained in-house resource to handle the task. Perhaps they may want to deploy their HR team to handle other items that require a more personal touch, such as training or employee engagement. Or maybe they are simply looking for a way to make the whole process more secure and error-free.

Whatever the reason, businesses looking to outsource their payroll should understand what outsourcing really is—and how it’s different from a technology platform.  When you outsource your Managed Payroll, you are provided with a trained payroll person and the payroll is processed on your preferred technology. Payroll is a vital function that needs to be handled by a trusted and reliable partner. So, let’s explore how and why outsourcing managed payroll works for so many businesses.

Managed Payroll Outsourcing vs. Payroll Technology

When you begin your payroll outsourcing journey, understanding the difference between managed payroll outsourcing and using a payroll technology platform,  is essential. A payroll technology platform is a software that businesses can use to calculate their payroll.  Managed Payroll Outsourcing allows a trusted third party person to take on the task of managing your payroll on your payroll technology platform.

If you’ve been running your own payroll up to this point, it’s likely that you’re already using a payroll platform, such as ADP, UKG, Paylocity, Workday, Paycom, Paycor, Ceridian, and Namely—and that’s just getting started.

Choosing to outsource your payroll function is different. In that case, a third-party professional works with your team to manage and oversee your payroll. There are various levels of outsourcing available. In some cases, companies may ask the outsourcing team to fully take over every aspect of their payroll process, including full tax reviews. In other cases, they may ask the team to assist the employees who are already managing the process.

When searching for an organization to entrust with your business’s payroll, it’s crucial to verify if they are familiar with the technology platform that you are already using. For example, OperationsInc has extensive experience with more than 20 different payroll technology providers, so there’s little to no transition time required.

But what happens when you want to switch to a different payroll technology platform entirely? A payroll outsourcing team can assist with that transition, too, ensuring that all necessary data transfers correctly to the new system. For example, OperationsInc will work alongside your new vendor to optimize the platform, then monitor the data transfer process closely through data validation and integrity checks. This ensures that employees are paid promptly and there’s no lag time in your payroll schedule.

Outsourceable Payroll Functions

HR professionals who have handled payroll know that there are multiple layers to the task. OperationsInc has the know-how and experience to manage them all, including:

• Managed payroll (using your existing platform/service)
• Payroll technology training
• Selecting a payroll/HRIS vendor
• Payroll data management
• Payroll audits
• Multi-state tax compliance
• “Emergency” payroll services
• Year-end management

When it comes down to it, paying employees is a major responsibility for any company and managing payroll can be difficult and complex. Mix-ups or delays in paying employees are guaranteed to cause staff problems and unhappiness. Working with a managed payroll outsourcing firm can eliminate these issues so that your workers are always paid correctly and on time.

Benefits of Payroll Outsourcing

Because payroll is such a critical function for any company, the last thing you want is to be worried about delays or missed payments if members of your payroll team leave the company or are out sick. Outsourcing payroll to OperationsInc means you don’t have to worry about that risk. There is always a whole team to step in.

Typically when you handle payroll in-house, the employee managing it is also responsible for other human resources tasks. Payroll isn’t their primary focus. Outsourcing the payroll function means you don’t have to worry about your employee rushing to finish payroll and inadvertently making a mistake. Outsourcing payroll also generates cost savings because HR staff can more efficiently use their time to manage employees, not process paychecks.

Using an outside payroll provider also gives you peace of mind in terms of confidentiality and security. A third-party team carefully safeguards data and isn’t concerned with the pay rate of other employees or who does and doesn’t receive bonuses.

Another advantage to outsourcing payroll is the ability to stay on top of changes in labor laws, tax regulations, and other vital forms of compliance. These requirements are constantly changing, and with more employees working remotely, more businesses are having to navigate the laws in multiple states. Outsourcing payroll with OperationsInc ensures that your business is up to date on the latest rules, so you don’t have to worry about missing out on essential revisions.

Finally, many businesses can better utilize their technology platform. Too often, companies may only be leveraging a portion of what their system offers. Not fully using your technology is another area where outsourcing payroll can introduce cost savings. Thanks to more than 20 years of experience, OperationsInc knows the ins and outs of dozens of payroll platform options. And if you’re considering making a switch to a different platform, it’s wise to consult a third-party expert like OperationsInc first.

Why OperationsInc?

OperationsInc provides reliable management of employee pay disbursements, tax filing, compliance oversight, platform implementation, audits and assessments, project support, and more. What’s more, the OI team of experts is scalable to your needs. Working with a third-party team of experts can dramatically free up the bandwidth of your own HR team, allowing them to focus on building a stronger and more productive company culture.

With experts on call when you need them, OperationsInc also acts as a liaison between you and your payroll provider if any issues occur. This service saves you from having to manage yet another vendor.

Best of all, OperationsInc offers its services on a per-hour basis in quarter-hour increments. You only pay for personalized advice and support when needed, maximizing your cost savings.

Whether you need assistance with adopting a new payroll platform or maintaining key payroll responsibilities, OperationsInc’s outsourced payroll services are primed to improve your team’s efficiency, cost-effectiveness, and overall value. Your business can depend on the experience of the OperationsInc team, no matter your payroll needs.