5 Duties Of Outsource Payroll Services For Accountants

There are several steps to outsource payroll services effectively. These primary outsourced payroll duties include managing personnel, taxes and withholdings. For companies with multiple locations and dozens of employees, an outsourced solution can save up to 80% of productivity. As an accountant who manages payroll, you may want to consider changing your current workflow. This way, you can offload payroll and basic bookkeeping duties to save time. In this post, we’ll cover the primary duties that outsourced payroll services offer for accountants.

Manage Bookkeeping Tasks

When outsourcing payroll services, the provider can offer bookkeeping services to save time. These national bookkeeping firms offer expertise in multiple states and cities throughout the United States. You can request they reconcile your bookkeeping and payroll together. The provider can handle bookkeeping of wage garnishments, off-cycle payments, employee loans and bonuses. Additionally, they can provide another level of tracking for year-end reconciliations. The outsourcing payroll provider should offer local assistance and high levels of communication. This way, if there is a bookkeeping error, you can resolve it for clients quickly. Definitely, consider the bookkeeping services offered by national payroll companies.

Employment Tax Withholding

Next, an outsourcing payroll provider may include business tax withholding duties. The partner takes on the responsibility of withholding, reporting and submitting payment for employment taxes on behalf of your accounting firm. In some cases, the outsourced partner will take on the liability of unpaid taxes. The partner is also responsible for the employment taxes paid by the employer and employees. You may have to sign Form 2678 to make them an official agent according to the IRS. Of course, consult with a professional about your unique situation. Then, the service provider can offer aggregate services for your firm and clients. This would free up time from tracking tax withholding reporting and payments. Undoubtedly, this is a time-consuming task that an outsourced payroll partner can handle for your business.

Online Payroll Processing

Outsource payroll providers additionally offer online processing services. These firms use online software applications to digitally process small business payroll. This means your employees can be paid from any location, at any time. All you need to do is send the raw data to the outsourced firm. Then, they’ll enter the information into their accounting software, navigate tax requirements, and process paychecks accordingly. Certainly, look for an outsource payroll service for accountants that offers online processing.

New Hire Onboarding

Outsourced payroll services additionally help with the financial implications of new hire onboarding. State governments have specific requirements whenever a new employee is added to your workforce. Basically, they want to check for any outstanding state/federal debts or garnishments against these individuals. Your outsourced payroll provider will likely provide this service in-house, so you don’t need to partner with third-party firms. In fact, many agencies offer this service free of charge. With their expertise, you can confidently recruit, onboard, and hire new members to your business team. Definitely, an outsource payroll service can help you with new hire onboarding operations.

Data Security Assurance

Next, outsourcing payroll services included data security assurance responsibilities. These security duties include safeguarding confidential personal employee data, salary information, and company secrets. The partner must demonstrate the ability to keep accounts and data from being leaked. Ask the partner for their process to avoid any type of information mismanagement or cloud breach. The best payroll partners understand the dangers associated with social security numbers, company EIN numbers, and personal contact information. Of course, you need a data security assurance service to successfully outsource payroll duties.

Modern outsourced payroll processing firms have several distinct responsibilities. For a start, these professional finance firms are responsible for managing bookkeeping tasks and responsibilities. In addition, outsourced companies handle employment tax withholding. They also offer online services — which is critical for remote or multi-national corporations. Plus, you can find a processing company to assist with new employee hiring and onboarding. Further, they can help you navigate complex data security operations. Follow the points above to learn the primary duties of outsource payroll services for accountants.