CoAdvantage- Payroll is challenging, difficult, tedious, and – above all else – time-consuming. But getting payroll service right is critical. That’s especially true at small and mid-size companies where executives must wear many hats; owners and managers only have so much time in the day.
The Bank Of America Business Advantage Spring 2019 Small Business Owner Report found that over two-thirds of small employers cite payroll as a business management task they consider to be difficult, one that 34% of business owners say takes time away from running their business.
When businesses – especially SMBs – try to do it all in-house and short-change the process, the risk of error increases, and the time available decreases. That’s probably why so many companies use some form of payroll technology or service. Bank of America also found that nearly half (45%) of small businesses use some technology or tool to manage payroll. Research by Deloitte further found that virtually all organizations use some form of payroll self-service, and many outsource payroll altogether.
Unfortunately, many of these organizations settle for only the most basic services, when they could be getting so much more because not all payroll services, tools, and technologies are made equal.
In fact, many are severely lacking.
For example, the vast majority of companies do allow their employees to view online pay statements (83%) and view annual tax documents (74%). That’s great! But only about half or fewer of businesses give employees the ability to update personal information like banking details, payroll tax information, voluntary deductions, or to deal with time-and-labor management (TLM) functions like reporting time requesting time off.
Among payroll services outsourced, Deloitte says half or more of employers outsource payroll tax preparation and filing and year-tax form printing and distribution. Fewer, however, get help with check printing and distribution, payroll cost modeling, gross to net calculation, garnishment/tax levy administration, and other more advanced functions.
That’s a lot of potential advantage to leave on the table. Outsourcing payroll, or using some kind of hosted service, can restore time to business owners while saving costs and improving accuracy – but only if the service delivers the right set of functionality and service.
CoAdvantage, one of the nation’s largest Professional Employer Organizations (PEOs), helps small to mid-sized companies with payroll, benefits, HR administration, and compliance. To learn more about CoAdvantage’s ability to create a strategic HR function in your business that drives business growth potential, contact us today.