It doesn’t matter whether you are a small business with 10 employees or a medium size business with 200 employees, you still need to worry about paying your employees.
But how you handle your payroll processing can differ from one company to another. Some businesses may choose to handle their payroll in-house. While other companies may decide to outsource their payroll services to alleviate the hassles and administrative burdens associated with running payroll. When you choose to outsource your payroll, you have a couple of options as to how involved you want to be in the process.
Payroll Services – Choose Your Level of Involvement
Typically there are two levels of involvement regarding payroll processing: Full-service and self-service. Each option has its advantages and disadvantages, and choosing the right one depends on the needs of your business. So what are the differences between the two?
Full-Service Payroll (FSP)
Full-Service Payroll (FSP) is a comprehensive payroll service that takes care of all payroll-related tasks. This includes calculating employee salaries, withholding taxes, and making timely payments to the government and other entities. FSP also provides additional services such as processing employee benefits and handling year-end tax filings. With FSP, business owners can delegate all payroll-related tasks to a third-party provider and focus on other aspects of their business.
In short, FSP often gives you a dedicated payroll specialist to assist you each step of the way and takes the burden off your shoulders.
Self-Service Payroll (SSP)
For business owners that may want to be more involved in the payroll process, self-service payroll (SSP) using a secure web payroll entry system may be the way to go.
Self-Service Payroll (SSP) requires more involvement from the business owner. With SSP, business owners are responsible for handling payroll tasks such as calculating employee salaries, withholding taxes, and making payments to the government and other entities. SSP providers typically offer a software platform that allows business owners to manage these tasks on their own.
The Benefits: Full-Service Payroll & Self-Service Payroll
So, which payroll service is right for your business? The answer depends on several factors such as the size of your business, the complexity of your payroll requirements, and the amount of time and resources you can devote to payroll management.
For small businesses with a limited budget and simple payroll requirements, SSP can be a cost-effective option. SSP allows business owners to manage payroll tasks themselves, which can be a significant advantage for those who prefer to maintain control over their payroll processes. Additional benefits associated with SSP include:
- Convenience & flexibility of entering your payroll information online… anytime, anywhere
- Submit your payroll outside of normal business hours… whether it is early in the morning or late at night
- Access, manage and control your employee data and payroll information 24/7
- Secure client login from anywhere with an Internet connection
- Review your payroll totals online before submitting your payroll for processing
However, for larger businesses with more complex payroll requirements, FSP can be the better choice. FSP providers have the expertise and resources to handle a wide range of payroll tasks, which can save business owners time and reduce the risk of errors or compliance issues. Additional benefits associated with FSP include:
- A dedicated payroll specialist assigned to your account that knows your business and can answer any payroll questions you may have
- Complete payroll services from start to finish with payroll specialist assistance along the way
- Each payroll period your specialist will review the data you submit including the total hours worked, total number of checks & total dollar amount of your payroll
- A choice to submit your payroll data to your payroll provider by phone, email or fax
- Recommendations on other services that might benefit your company and save you money such as workers’ comp insurance, time & attendance solutions and pre-tax health spending accounts
Let PrimePay Help You Decide
PrimePay can partner with you to offer support throughout the entire employee lifecycle. Learn more about how PrimePay can help you streamline Payroll & Human Resources processes.
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