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Investigating the Advantages of Outsourcing Payroll

 

As fulfilled and engaged as your employees may be with their jobs, if they have any issues with their paychecks, it won’t take long for them to become frustrated. Some companies have dedicated payroll departments and others find it useful to outsource this process to one of many companies that specialize in payroll. How do you know which option is right for you? Here are some things to consider.

  • How big is your company? One of the biggest concerns when it comes to answering this question is how many employees your organization has on staff. However, the answer isn’t cut and dry. Small companies like to use payroll services so they don’t need to employ a dedicated payroll department. Larger companies like to use them to maintain consistency.
  • Do you need more than just payroll? There are other reasons to consider an outside vendor, especially if your small company also wants insurance or other services. An outside vendor may be able to meet a wide variety of your needs.
  • Are your employees exempt or nonexempt? Exempt employees are traditionally paid an annual salary. Nonexempt are usually hourly employees who receive hourly pay and qualify for overtime. The more complicated the payroll process, the more important it might be to outsource it.
  • How often is payday? Another thing to consider is how often you pay your employees. Salaried employees are frequently paid twice a month. Hourly employees might be paid every two weeks or every week. This is something a payroll service can work out with you to be the most effective for your type of business.

Do you have more questions about outsourced payroll? Call us today! 916-550-8174

Copyright 2018

California to Require Unpaid Parental Leave at Small Businesses

Employers with between 20 and 49 employees must provide up to 12 weeks of unpaid job-protected
parental leave to bond with a new child within one year of the child’s birth, adoption, or foster-care
placement, effective Jan. 1, 2018, under a measure (S.B. 63) signed Oct. 12 by California Gov. Jerry
Brown (D). Read more