Keeping payrolls in-house simply means that your company will be taking care of all payroll matters on its own. You will hire workers as your own employees, pay their salaries as your own expense and will shoulder each and every responsibility that comes with this line of business operations. In detail, this would mean that you need qualified personnel to look after timesheets, calculating wages of both full-time and part-time employees, cutting checks, making direct deposits, and print and mail checks. You will also be responsible for preparing taxes for your business revenues, personal profits, and employees’ salaries, and also filing taxes on time as well. If there is a fine or penalty, due to late or incorrect filing, the responsibility of handling that is also your own.
The advantages you may gain from keeping payroll in-house are primarily on the cost side of workforce. Since most likely someone already on your payroll will be taking care of this task, there will be no additional expenses. You will also be able to customize the management of payrolls as per your preferences. You can choose the software of your choice, employ organizational methods as per your wishes, and keep secrecy of your records and documents. On the flipside, there are far more potential disadvantages of choosing this option. First and foremost, if the person in charge of handling payrolls is not qualified or hired specifically for this job, then the chance of errors is much higher. There will also be potential job dissatisfaction since a resource is supposed to do more than his or her required job description. In case the errors are significant, there will also be fines and penalties from the government which will more often than not outweigh the costs of hiring separate qualified person for the job. To ensure against these very real risks, companies often choose to either hire a specialized source – which nullifies the cost advantage, or outsource to a full-service payroll team.
Full-service payroll companies, such as Intersoft BPO, will take on all responsibilities mentioned above, along with insurance of no error in your prepared and filed documents. Since such outsourcing companies have qualified personnel, dedicated for payroll management, there is no risk of failing to comply with tax laws, or mistakes in the preparation of payrolls, timesheets, checks, or deposits. Full-service payroll management also means that your hired company will be using the most up-to-date software, in line with the legal and regulatory requirements. This will not only keep you updated regarding your payroll services but will also mean that your taxes are filed on time, and there is no penalty or fine. Most importantly it will mean that you will be able to utilize your resources according to their skills, and your employee turnover will also be low as their job satisfaction will be high. It will also allow you to focus more on your bottom line business without worrying about additional risks from payroll management.