If you’ve contracted with an outside vendor to handle all or part of your payroll processing, you’re not alone.
According to a survey by the American Payroll Association, payroll is one of the most commonly outsourced human resources functions. In fact, they reported that 58% of companies with fewer than 500 employees outsource their payroll.
But is outsourcing the best way for your organization to handle this important task?
The lower-cost option
Often, companies decide to process payroll in-house because they think it will save them money. As part of a study conducted by PriceWaterhouse, corporate financial executives were interviewed about the cost of payroll preparation. These executives estimated the average in-house cost per check to be between $2 and $6.
The problem is, they overlooked many indirect and “hidden” costs such as:
- The cost of time spent calculating wages and determining tax withholdings;
- The cost of time spent preparing and submitting tax deposits to the appropriate authorities;
- The cost of time spent researching applicable regulations and state and local tax changes, and configuring the software to accommodate them;
- The cost of software updates;
- And more.
When you take all of those hidden costs into consideration, the study determined the cost of preparing payroll in-house was closer to $16 per check. On the other hand, according to another study the average cost per check from an outsource vendor could be $10 or less.
The cost savings alone could justify using an outside payroll processing service.
Why move to the cloud?
You’ve probably heard of “the cloud.” But what exactly does that mean?
It means that your information is stored online and accessible to you via the Internet. You can securely access your payroll data no matter where you are, as long as you have an Internet connection. Using a cloud-based payroll processing service, like AcroTime Payroll, offers you some significant benefits over preparing payroll in-house. For instance:
Better use of time and resources
Time spent on low-level clerical computations and data entry is one of the biggest “hidden” costs of payroll processing. Worse yet, time spent on these functions is time you can’t spend on growing your company. If you process payroll yourself, upgrading to a cloud-based payroll processing service will liberate your time to focus on your core business. If you have staff who process payroll, outsourcing will free them up to concentrate on more strategic functions.
Since AcroTime software is automatically kept up to date and maintained in our secure data center, you also will avoid burdening your IT department with software maintenance issues. And if your organization doesn’t have a dedicated IT department to begin with, you’ll really appreciate not having the headache of having to update any software yourself.
Reduction in legal liability
AcroTime automatically keeps up with developments in state and local tax laws. This ensures your payroll calculations will always take into account the latest changes. Your staff doesn’t have to take the time to research each jurisdiction where you have employees.
AcroTime also includes “geospatial identification.” This fancy-sounding term simply means the program identifies the precise locations where each employee lives and works. This helps ensure all state and local income taxes are correctly calculated, saving you a lot of headaches and eliminating errors that could result in huge fines and penalties.
Improved security and backup
AcroTime maintains your confidential payroll information in a data center that meets Department of Defense standards for security, with redundant power supplies and continuous backup. You don’t need to worry about data breaches, lost laptops, or your records being damaged or destroyed due to fires, floods, or other natural disasters.
Since everything is safely stored in the cloud, your payroll system is accessible anytime, anywhere, and your data is easily searchable. So much better than trying to store and access dusty old paper records!
Easy data import / integration
AcroTime Payroll will work with virtually any time tracking system. If your time records are paper-based, your payroll administrator can enter employee hours directly in to the program. If you use time tracking software with export capabilities, you may be able to import the data into AcroTime Payroll.
If you use the AcroTime Time & Labor module to track employee hours, it’s even easier. All AcroTime modules use a single database, so there’s no exporting/importing or error-prone data entry necessary — employee hours are already there and available for payroll processing. It’s truly hassle-free.
Support for all types of organizations
Whether you have one central location, multiple offices, telecommuters and mobile workers, or you operate a “virtual office” with no physical headquarters building at all, AcroTime has got you covered. Your payroll administrators can access records and process payroll from anywhere, thanks to the cloud.
The combination of AcroTime Payroll and AcroTime Time & Labor is even more powerful. Employees can clock in using the web interface, terminals (with a badge, fingerprint or PIN), a mobile app (available with the Platinum level service), or an optional telephony module that lets them clock in and out with any telephone, even land-lines.
AcroTime makes it quick and easy for you to process payroll, no matter what kind of workspace you have.
Generating the reports you need to monitor and process payroll can be a hassle. But AcroTime offers a wealth of ready-built reports, so you can likely find just what you need. However, if you want a different format, customization is easy, and our U.S.-based support staff are available to assist you with any questions.
Reports can be automatically generated so they’re ready when you need them. You can also run reports on-demand so you’re always up to date with the information you need.
Is the cloud right for you?
The answer is likely yes. With built-in cost savings, a reduction in hassles and headaches, and robust reporting capabilities, AcroTime cloud-based payroll is a good choice for many organizations.
Contact us if you’d like to find out more about the advantages and benefits that AcroTime Payroll can offer to your organization.
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