As a business owner or manager, you know what customer service is all about. That’s probably a big part of why your customers choose you. But in today’s challenging business environment, you may find yourself doing more with less- more demands, but you have less time and fewer employees. You’re working more and feel like you’re being stretched thin. Inflation looms large, costs continually increase, and quality employees are increasingly hard to find. So the main question is- how do you keep your business efficient, growing and profitable?
The answer is Business Process Outsourcing or BPO. BPO is about focusing on what your business does best, and outsourcing the rest to experienced experts whom you can trust.
Do you ever wish you could free yourself and your company from the chores of everyday internally-managed business tasks? Well, you can! Things like payroll that are so essential, yet time consuming, can be performed by experienced experts available to serve your company’s needs right now.
These kinds of ongoing, repetitive, administrative tasks are a constant chore. They may even be keeping you and your team from engaging in creative thinking, coming up with and implementing new, innovative ideas, and engaging directly and satisfyingly with your business and your customers as much as you’d like to. Yet you may be hesitant to delegate these administrative chores to an outside company.
Payroll in BPO is one of the most outsourced of HR functions. Using payroll in BPO frees you from time-consuming administrative burdens, allowing you the flexibility to control costs, improve or shift the productivity of your own company employees, and quickly reallocate resources in response to market changes or unexpected disruptions, the kind we can continue to expect as the world economy continues to shift in unexpected ways.
What is Payroll BPO Meaning?
The meaning of payroll BPO, or business process outsourcing, is when a firm contracts a third party to fully manage payroll operations. Usually managed by an HRO, this firm will handle all functions related to payroll from time and attendance, to payroll tax compliance, to direct deposits. Experienced HR outsourcing partners will seamlessly handle multi-state tax compliance and global payroll operations for large, enterprise businesses.
One of the best ways use BPO today within any organization is for Back-Office functions, often called internal business functions. These are comprised of support operations including accounting, information technology (IT) services, human resources (HR), quality assurance, and payment processing.
Some organizations outsource an entire function, such as the HR department, to a single vendor. Other companies outsource only specific processes within a functional area, such as only payroll processing, while having their own team perform all other HR processes.
What are the benefits of BPO for HR?
Whether due to a lack of budget, employees or time, every HR department has limits on how much it can achieve independently. With BPO, however, it’s possible to do more and reach new heights, all without having to hire new employees. BPO providers are experts in the services they provide, which means they’re able to complete tasks faster and with greater accuracy than you can do it in-house, so you can control costs while becoming more efficient and have more time to meet your core business challenges.
An established company might opt to outsource a task that they were doing internally. Consider what is payroll in BPO, and realize it’s one of the most outsourced functions of HR. “Payroll Pain” is something all HR departments complain about. Between ongoing changes to deductions, rules and laws governing payroll, retroactive adjustments, employee frustrations and the rising cost of noncompliance, it is a source of ongoing stress for companies of all sizes.
What are some of the main payroll pain points?
Manual processing is the mother of all HR headaches, which is why larger companies almost always outsource payroll to a specialized company.
Payroll Outsourcing removes technology headaches. Outsourced payroll is popular among accounting professionals and many other industries. A constant worry every business has is whether they have the latest version of their payroll software and the most recent tax rates, in order to avoid stiff penalties. Payroll outsourcing eases this strain and helps business reward their employees efficiently.
If you want to keep your quality employees, you must sure their checks are absolutely accurate. How well do you or your HR employees understand Critical Payroll Issues? Local, state, Federal taxes, shift differentials, weighted average overtime, gig work, prevailing wage, garnishments for child support, healthcare deductions, employee benefit deductions, union rules, and the various employee contracts, fixed term contracts, specific assignment contracts, etc. etc. etc.
And it seems there’s always a new form. A quality employee won’t stay long if their payroll gets messed up repeatedly, and that’s not all. For payroll non-compliance and other violations, even if unintentional, the IRS can get involved, and fines are just the beginning. The IRS has multiple penalties for violations in your payroll taxes. If you don’t file your payroll taxes on time, you get hit with a “failure to file” penalty. If you don’t deposit the money within 3 days, you get hit with a “failure to deposit” and a “failure to pay” penalty. If the IRS places a lien on your business, your borrowing costs will increase substantially. The IRS can shut down your business and even seize your personal assets, since there is no liability protection from the IRS.
Payroll BPO with Corban OneSource
The good news is that there are many HRO firms that have a strong track record with payroll BPO. At Corban OneSource, our goal is to provide accurate payroll outsourcing for midsize and mid-market firms across the United States and Canada. We handle all payroll processing operations from start to finish and can manage global payroll operations for companies who are based in the United States and have employees abroad.
We fully manage payroll functions like time & attendance, payroll tax compliance, reconciliation, direct deposits and digital pay stubs, and all tasks within your HCM technology. We prepare timely payroll processing and send it to you for final approval before delivery. Reach out to us for a consultation to see how payroll BPO can help you get more done.
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