Managed Payroll Services

What Are Managed Payroll Services?

Managed payroll services refer to the outsourcing of payroll processing to a third party. Payroll encompasses several tasks, such as computing employee wages, deducting taxes, processing payments, and generating payroll reports. With managed payroll services, companies can save time on payroll operations and reduce expenses that would otherwise be needed for maintaining an in-house payroll team. However, with integrated payroll management software for small businesses like Mewurk, businesses can cost-effectively and quickly process payroll without relying on these services.

Top Challenges of Managing Payroll In-House

Internal payroll management is time-consuming and complicated. Here are the major issues that have to be faced when you go with it.

Tax Calculation Complexity:

Calculating taxes and deductions requires thorough knowledge of tax slabs, government guidelines and expertise.

Constant Changes in Payroll Compliance

Any change in payroll laws may confuse the in-house payroll team.

Safety of Employee Data

Data breaches and cyber threats compromise sensitive employee data. Without proper security measures in place to safeguard these important pieces of information, managing payroll in-house can be riskier.

Administrative Burden

Payroll processing is time-consuming, taking several days to weeks. Unless you have sufficient time and resources, it can become a real administrative burden for your team.

Error Possibility

There is a chance of mistakes during manual calculations and processing. Payroll errors are too common in organisations that do it by themselves without investing in advanced payroll management systems.

Lack of Expertise

It is not feasible to hire specialised personnel to handle different areas of payroll, such as tax deduction, benefit administration, etc. But when you don’t have specialisation, it can cause significant delays in the process.

Employee Data Management

Payroll processing starts with tracking employee details such as their total worked hours, number of leaves taken, etc. Management of these employee data can appear challenging.

Scalability Problems

Sometimes, the in-house payroll system or the staff for that may fail to handle the increasing volume of work.

System Integration Issues

Payroll integration and how it relates to HR, time management, and other system components can affect the processing efficiency.

How Can Managed Payroll Services Benefit Your Organisation?

The following are the ways in which managed payroll services benefit organisations.

Accurate Payments

There are fewer errors in the calculation of salaries and tax withholdings when you get it done by managed payroll services.

Increased Trust

Error-free, timely paychecks increase employee trust in your company's payroll processes and employee management.

Strategic HR Focus

You will be able to preserve your HR resources for talent development, recognition, culture enhancement and other important works.

Better Compliance

Managed payroll service providers specialise in labour and tax compliance, and they do it in real time.