Factors Why Small Buinesses Gain Advantages from Payroll Services

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Factors Why Small Buinesses Gain Advantages from Payroll Services by The Payroll Company 505-944-0105

Every aspect of your business should work finely and efficiently from the inception of your newly formed small business. It would be best to optimize the company, spending the minimum resources and trigging it to bring maximum possible output. Your time has tremendous importance; efforts that can be automated, delegated, or streamlined will contribute their part to maximize the value of your time.

  • Help your company be nimble
  • Manage the payroll-related matters
  • Recruiting Support 
  • Meet common business challenges 
  • Maintain employer amenability

 Small businesses can benefit from payroll companies because they help simplify payroll processes, are fast with their payments, and provide more benefits than any other payroll company.  

Indeed, organizations with fewer than five or even ten employees might not see the benefit of outsourcing payroll services. But, it doesn’t mean they are exempt from the value-adding services payroll providers can provide. The payroll services can add value to your organization, no matter it’s one employee.

Helping small businesses run their payrolls is only one of the services payroll services providers offer. Payroll service providers help businesses in many other ways, from establishing or changing tax agencies to tightening up your financial reporting function.

Payroll Services Help You Overcome Common Business Challenges

Although the best running small businesses face challenges and hurdles in development and progress, a well-run small business will be ready to face the challenges it will encounter in the coming days. They have plans and prevent the challenges from becoming problems. 

The payroll services providers can play a suitable robust role in handling and overcoming the four of the areas as cited the most common challenges by the owners of the small businesses in Small Business Trends:2020.

Payroll services help you overcome the common business challenges of cutting checks, making sure your employees are paid on time and the correct amount while ensuring that appropriate Federal, state, and local taxes are taken out of employee paychecks.

These tasks are not easy to manage and can spoil the time of busy business owners. Further, hiring and giving instruction to personnel to do a specific job can be cost-effective compared to working with a service provider that offers all the solutions.

By outsourcing your payroll services, you will know more about your business and make time for what’s most important to your success. Thirteen percent of the small business owners declare time management a top challenge. The decision to perform payroll functions by yourself or supervise and hire an employee performing them cannot be time and cost-effective as going for the payroll services.

Recruitment and retention are declared by 16 percent of the business owners as the challenge. This can also be elevated utilizing the services of the payroll services. The payroll service providers offer risk management services and many human resources.

Payroll Services Help Your Company Be Nimble

Due to the situations created by the COVID-19 pandemic, the United States’ economy faced a big challenge. Many business areas such as restaurants, travel, etc., get banned due to government imposed restrictions in the view of the pandemic. Despite the difficulties in such scenarios, even after the massive disruptions, they can illustrate more general principles common to business each time the condition changes. Payroll services enhance the company’s ability to be nimble. If you are looking for a rapid increase in your number of employees, for instance, you can add them to payroll seamlessly. On the other hand, they can help you downsize payroll if you scale down effectively and rapidly.

Payroll Services Offer Recruiting Support

Recruitment is also a double-sided challenge for the business owners other than it seems a significant challenge for the 16% of business owners. Let’s consider the positive side of recruitment. It is imperative if the company is to grow and hand over the company’s critical positions to the right persons according to their suitability.

While on the negative aspect, the entire recruitment process needs a considerable amount of time and commitment that can be managed after slaughtering other essential considerations and functions of the company. Besides, recruitment also needs both money and time. If we see, the average time to the hiring process of an employee is on average a month and a half, and the overage cost is $4000 according to a report of Society for Human Resources Management. That’s why companies hire staffing agencies to do such tasks for them.

One thing to remember as the negative factor is that it is unnecessary every time the hired person proves to be the best feting for your requirements. Although no one wants to hire the wrong person for a position, it is expected; it happens sometimes. If it occurs to you, you will lose both time and money in the entire process. 

The payroll services may help in the process of hiring a person for a specific position. The payroll services include checking the background of the person who is being hired and making sure excellent hires which will later prove productive and proper person for certain positions.

Payroll services Manage and Streamline Rules, Regulations, and Services.

You’re not the only one responsible for keeping abreast of payroll withholding and coverage rules and regulations. Your payroll provider should also keep the rules, regulations, and services up to date. With a payroll provider, the payroll department can manage and streamline management, regulations, and services to ensure your company meets all of its obligations to employees.

In most states, for example, workers’ compensation insurance is required. It is just one requirement, along with the Federal Insurance Contributions Act (FICA) that covers Social Security, Medicare, and state unemployment insurance, that must be managed appropriately. Otherwise, your company can be subject to action and fines from the government.

Various rules, regulations, and services apply to required coverage and withholding and employee benefits if you provide your employees with retirement benefits such as a 401(k) plan. Errors can cost much money. A service for small businesses can help you meet the payroll schedule deposit necessary funds into your employees’ accounts.

Payroll Services Help You Maintain Employer Compliance

Though payroll may seem like one of the latest things in your busy day, and I don’t blame you for thinking that way, having a good payroll service provider like Guidant is extra beneficial. Guidant can be your extra ally when it comes to small business compliance. With Guidant, you get a dedicated payroll service provider who specializes in small business, with all kinds of clever ways to help you meet all your compliance needs.

It helps you keep up with payroll compliance for health and insurance purposes, withhold state and federal taxes, complete necessary end-of-year reports and tax returns, keep on top of changes in the laws, and ultimately stay on top of all tax and payroll requirements.

 When you need payroll services, it helps to know that you can maintain employer compliance and run a smooth operation. That’s why you need clear policies established for PTO, progressive discipline, and drug and alcohol policy.

Business owners may question whether written policies and procedures are necessary. But these are often an essential part of overall company risk management. Written policies and practices will help you maintain employer compliance. Costly lawsuits and poor employee performance can be avoided using written policies and procedures. Policy manuals and procedures keep your company compliant with all laws and regulations, giving peace of mind to you and your employees.

Payroll Providers Can Save You Fines and Fees

Not only the benefits are the causes of the tax audit. In the knowledge of most business owners, at under 2 percent, the IRS risk is low. But that does not mean that the tax penalties aren’t there. In 2018 it was recorded that $6.4 Billion as penalties and another $4.8 billion on employment taxes. The payroll service providers enable you to avoid the penalties by ensuring that your taxes are paid accordingly on time. 

The Payroll Company is Here to Assist

Probably at the earlier stage of your new business, you may ponder that your company is too small and cannot go for the payroll services. You may think your company is small and cannot benefit from the payroll providers. But in light of the above discussion, the decision to partner with an expert industry would be one of the smartest moves in your business.  

Payroll Processing Outsourcing Plus & Minuses – Part Two

Kevin Kenealy payroll processing, payroll processing company, payroll processing systems, payroll services Comments Off on Payroll Processing Outsourcing Plus & Minuses – Part Two ,

Take a minute to review the pluses and minuses
of switching your business to an outside payroll processing services provider.
Featured below are both the pluses and the minuses.


  • Time savings – Several surveys over the years completed by a variety of business associations have reported that business owners place payroll and payroll taxes as the number 2 task that takes up the most time and creates the most hassle of all the tasks categories it takes to run a successful business. It’s obvious that running payroll 1 to 4 times a month requires a ton of time and focus to complete. Switching to an outside payroll processing service provider frees up time and improves effectiveness for most business owners.
  • Reduction in Expenses – Each pay period requires completion of a long list of required tasks including preparing and paying mandatory payroll taxes, running payroll reports, figuring out wages for the entire company staff, printing, signing and handing out payroll checks.
  • Better Company and Employee Data Security – In 2019 payroll processing service providers provide, mirrored backup systems, several server farms, the most up-to-date technology, solid secure SSL (secure socket layer) firewall protected systems to safeguard private employee and company information and data.
  • Keeping Current with Regulations – It is hard to stay compliant and current with payroll tax laws and payroll taxes. The financial penalties are huge. Payroll processing service providers know all the rules and regulations like the back of their hand. Their primary objective in running their business is implement this knowledge, process your payroll for your company and keep you current with all requirements and regulations.


  • Ease of Use Getting Wage Reporting and Employee
    Certain payroll processing service providers do not offer reporting
    on payroll costs and other critical data about employees due to the fact they
    do not have the information or because the data is on their servers, which your
    business does get access to for various reasons.
  • Time Issues on Fixing Payroll Mistakes –
    Payroll companies are sometimes slow to respond to payroll errors. If the
    company or the employee needs aren’t met when it comes to payroll errors, it is
    bad for everyone.
  • Payroll Services Pricing –
    In some instances payroll processing service providers do not customize pricing
    to fit a company’s needs. Check to make sure the services provided fit your company’s
    needs and not the other way around.
  • Chance Your Payroll Processing Provider Closes
    Its Doors
     – Businesses close all the time. It can be due failure,
    loss of a primary partner or any number of reasons.  If this were to happen to your business, you
    may lose out on access to company payroll data, employee data and potentially
    your company’s money.  

minuses described here do not have to be part of your picture. The main thing
to make sure you do is your due diligence in checking out the company thoroughly
first. Use the following guidelines to make a smart payroll processing service
provider choice:

  • Recommendations from associates, mentors and business owners
  • Documented credentials including time in business, similar company
    payroll processing experience and confirmed business licenses.
  • Confirmed quality customer service and personal attention to
  • Services and support offered meet your company’s needs
  • Pricing and additional fees or charges are documented upfront
  • Reporting of data, data reporting needs and security of data are
    rock solid

Payroll Processing Outsourcing Plus & Minuses – Part One

Kevin Kenealy payroll processing, payroll processing company, payroll processing systems, payroll services Comments Off on Payroll Processing Outsourcing Plus & Minuses – Part One ,

In today’s modern web-based technology world,
companies can choose from multiple options to complete payroll. Business owners
that opt to do it themselves is one way and businesses that choose to assign
the task of doing payroll to a department, like human resources, is another way
to go. Lots of businesses choose to go to a provider outside the company for
payroll processing like a bookkeeper, accounting firm or an online payroll
processing company. The rub lies in figuring out which method is the best way
for your company to do its payroll.

Small-business owners need to take a hard look
at where their time is best spent. Look at how much time is being spent now by
you each month doing the company payroll. If the answer is too much where for a
small monthly fee payroll is completed and the time is gain is used closing new
sales. Review your payroll to make sure you are current with all state and
federal laws, rules and payroll regulations. If you’re not sure or you’re not
current, it might be time to switch to hiring a payroll processing provider.
Look to see if you’re keeping all your company’s and your employee’s financial
data well secured and private. Also, check to make sure your company’s records
for wages, benefits and retirement programs are on time, current and correct.

Payroll Processing Success, But Is It Taking
You Away from Important Tasks

You are managing running your company’s payroll successfully. However, if keeping up with running payroll, maintaining legal requirements, data security and records is eating up a good amount of your time, you may want to switch to outsourcing payroll to an online payroll processing company. Payroll processing company will calculate your company’s payroll and its associated taxes, print and handout checks, complete direct deposit payroll checks and complete all the company’s payroll reports. It will file payroll taxes, issue annual Forms W-2, set up worker’s 401(k) deductions and connect their contributions to investment account providers and keep records on benefits of employees.

Top Payroll Issues that May Doom Your Business in 2019

Kevin Kenealy payroll processing, payroll services Comments Off on Top Payroll Issues that May Doom Your Business in 2019 ,

Businesses fail all the time and there are several issues that cause those failures. It’s a fact that payroll in the year 2019 may be the one that comes back to bite a business that it never even considered a risk area unless it takes action now. However, one way to mitigate that risk is use workforce management software and integrated payroll service. It’s a fact small businesses normally fail in year 1 to the tune of 25%. The top reason businesses fail is due to payroll issues. Managing payroll well can reduce cash flow problems and give businesses a better chance at succeeding for the long haul.

Payroll Services

Payroll services vary from company to company. There are several payroll service providers offering payroll processing that offer more than just straight forward payroll processing.  Several of the primary reasons payroll services are really great for small businesses is because it’s easy, eliminates the hassle and it gets payroll done on time. Companies rarely have the experience and knowledge needed about payroll taxes, payment profiles and the expertise to do it right. Payroll tax mistakes can be costly and they have caused the downfall of many companies. Payroll should never be a worry for employees. If it is a problem, employees panic, work slows down and many times employees start looking for work elsewhere.

Payroll periods never get missed when you use a professional payroll service provider. The only requirements to meet your companies payroll period are staff hours worked and making sure necessary funds are in the bank to fund the paychecks being disbursed. Using a 3rd party payroll service will help you run payroll properly, but you have to make sure you provide correct employee information from the beginning. The best way to make sure correct employee information is in place is to combine outsource payroll services with workforce management software.  Workforce management software is used to record and track company staff attendance and hours. Both your payroll services provider and your workforce management software need to be compatible.

Find a workforce management system that includes the important components of attendance, time, scheduling and document management. It is wise to find a system that can be done from mobile device and includes employee access that is self-service. Both of platforms working in tandem can help you run your business more effectively. Listed below are the payroll issues that must be avoided at all costs or they may doom your business:

  1. Cashflow

It is a fact that without cashflow your business can fail very quickly. Payroll doesn’t get paid, or it’s late. Company’s delay paying payroll taxes which puts the company in the crosshairs of the tax collectors like State Taxation and Revenue and the IRS. Overtime and overstaffing can break a business in half and destroy it. That is why payroll services and workforce management software is a critical tool most businesses should put in place. Managing payroll and staffing through these tools can help a business manage cashflow so much better than doing it manually.

  1. Employee Classifications Errors

Employee classification errors are a regular payroll mistake. It’s so easy to prevent, but it’s a regular reason for business’ doom.

Business classifications are as follows:

  1. Exempt salaried
  2. Non-exempt, hourly
  3. Independent contractor

Non-exempt get overtime, exempt do not earn overtime and contract employees are just that, on contract. If an employee is not classified properly non-compliance can turn into huge fines or penalties. Mistakes occur mostly regarding complicated classifications. The main factors that impact proper classifications are job duties and relationship status. Workers getting a salary doesn’t negate having to pay them overtime. Trying to avoid big pay expenses can lead to big trouble. Companies are smart to hire a professional payroll service and do employee classifications the right way.

  1. Record Keeping for Records For Audits, Payroll Documentation and Future Issues

A bad audit and an ensuing lawsuit can destroy a business. This is particularly the case if you’re not ready. Setting up a system that collects and maintains your company’s payroll records can protect your business from regulatory fines and penalties, employee allegations and real life audits. Workforce management software is a built in automated component and it is works 24/7 365 days a year. You can use it to manage your business, respond to employee allegations regarding payroll. Employees are able to self-manage due to login capability to review their own hours and records. This relieves managers  and improves work place efficiency. Additional historical work records are stored and backed up in the cloud giving companies the information need to improve the company regarding a variety of work subjects.

  1. New and Existing Employment & Health Care Laws And Staying in Compliance

Compliance is not a proverbial piece of cake, it’s complex to say the least. This has been the case for 50 years or more and it is not going to change. New business owners have to begin the process of being an employer with a mind set of starting and then staying in compliance with respect all labor and insurance laws. There are regulations for a large portion of business subjects and payroll is number one without a doubt.

Payroll addresses the following important sections

  • Fair Labor Standards Act (FLSA)
  • Affordable Care Act (ACA)
  • Payroll Based Journal (PBJ)
  • Family Medical Leave and Fair Scheduling Laws
  • Union Agreements
  • Industry-specific Regulations
  • Regulation Covering Non-U.S. citizens Employees

Fines are applied to businesses from small businesses to large corporations by regulatory agencies. It’s hard to fathom, but big companies and small businesses may be required to pay fines that doom the company. Many companies are subject to a variety of laws due to the state it’s located in or location in a particular state. Due to these issues it pays literally to hire and use a payroll service provider.

Cloud Record Maintenance with Workforce Management Software Services

Companies are able to develop and manage all their payroll and employee compliance records using a workforce management software service. Fines are real and nothing to sneeze at. Well-kept payroll and personnel records are worth their weight in gold because record keeping is maintained automatically. Additionally workforce management software helps company manage people, pay and the company more effectively using its built analytical tools and reports.

  1. Payroll Input Mistakes

People makes mistakes inputting numbers. Here are a set of input mistakes made all the time:

  • Wrong hours are written down by staff on old school timesheets
  • Misplace time cards
  • Clocking out on the company time clock gets forgotten
  • Employees forget to clock out or clock in from their mobile device
  • Managers and company supervisor neglect tracking staff over time.
  • Data entry errors by human resources and staff

 One Error Translates Into Several Errors, Expenses and Time Lost Going Forward

One input error can cascade into multiple errors adding up over and over. Inputs done incorrectly directly  impact payroll taxes and withholding for social security taxes. A short paycheck is a very bad thing from an employees perspective. Fixing it on the next check or immediately can be complex, depending on the complexity of the person’s wages and payroll or commission structure. Errors can be human and sometimes the errors are due to fraud. Staff can add hours the didn’t work and managers reduce hours to meet company goals. Big mistakes our purposeful paycheck errors can end up in a company paying giant fines.

Time Element of Payroll Mistakes

There is a domino effect when there is payroll error or there are payroll errors. Payroll has to fix every component of the error and they have to meet with all concerned of affect employees and their manager to determined what actually happened, what the true case is and how to fix it. The time it takes to resolve the problem can be immense and it ends affected the company from a variety of aspects including hours spent fixing it, employee productivity and potential fines that have to be paid due to non-compliance. Big fines can doom a company.


Payroll services and workforce management software combine together can solve the issue and put a system in place to reduce the chances of it happening in the future.

 Manage Payroll Well and Improve Your Chances of Running a Successful Company

When cash is tight it means you really have to run payroll for your business like a Swiss watch. Observe your payroll numbers to make sure you’re not spending money on payroll needlessly and make sure you’re making the most of every penny.  Using integrated workforce management software and payroll services will give your company, its managers and your employees the tools to run the company well, get paid on time and to stay in compliance.

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