5 Ways the Pandemic Proves You Need a Payroll Provider

Let’s face it; we’ve all heard how outsourcing payroll will save you time and money, offer expertise and heightened data security, and keep you in compliance. While that still holds true, we are now seeing the benefits from a whole new perspective— a pandemic.

One lesson we’ve learned through COVID-19 is how payroll and HR are the epicenter of our working world, and how much business owners lean on their provider to guide them through economically troubling times. 

We quickly became experts in the Paycheck Protection Program, FFCRA leave regulations, available tax credits, and all things COVID-19. Because that’s what our customers needed, and what better man for the job than a fellow small business.

We were already logging hours of research for our own business, so why wouldn’t we share all of that knowledge with our community? We’re all in this together, right?! 

Well, that’s what you get when you work with a good payroll provider— a partner, a guide, and a community, so you don’t have to brave the storm on your own. 

Now, let’s look at 5 ways the pandemic proves you need a payroll provider.

Time and Money

The classic argument for hiring a payroll provider: outsourcing payroll saves time that you could spend reinvesting in your business, and time is money— we get it.  But, during COVID-19 your time is more valuable because you have even less of it. 

This year, companies nationwide invested so much time adapting to the new normal that many goalposts got moved in the process. Trust me, we felt it too. The ambitious goals we set just months before everything hit the fan quickly appeared unattainable.

But, here’s the thing- it’s our job as a payroll provider to immerse ourselves in learning and accommodating new employment legislation, tax implications, and reporting needs. It’s part of our core business because it is what makes us money. So, unless you are a payroll, tax, HR, or legal professional, any amount of time you spend on these tasks is costing you money. 

COVID-19 proves to us that comprehending legislation is only half the battle (okay, maybe even a quarter), the hard part is figuring out how to implement it.

For example, tracking FFCRA leave to ensure you receive the tax credits promised and remain in compliance was smooth-sailing if you had a payroll provider to guide you. We configure the policy, set up the correct earning codes, and provide you with the reports you need for your records.   

Data & Security 

Running payroll in-house exposes you to a greater risk of identity theft and private records being compromised. That risk skyrockets now that our teams are so dispersed. Your home network or the coffee shop wifi you connect to (pre-COVID) is no match against the highly-secure cloud-based servers and encryption technology professional payroll providers use. 

From our experience, it’s a lot easier and cheaper to move your payroll to a cloud-based provider than it is to launch an entire IT infrastructure.

Paycheck Distribution 

Changing payment methods for individual employees at the drop of a dime isn’t easy; but if you have a payroll provider, then it’s honestly effortless. If you are printing, signing, and distributing checks and transferring money to different routing and account numbers in-house, changes can quickly become a nightmare. We witnessed many employers scramble to find ways for employees to get their checks during the lockdown. 

A payroll provider can help this situation in a few ways. 

1. Employees can quickly switch to direct deposit with a few clicks and have their banking information verified without ever exchanging a form or voided check.
   
2. Most payroll providers have various services and delivery methods up their sleeve; if one fails, there is usually backup.
   

Hiring

New hire paperwork is pretty hard to complete when you don’t have physical access to it. If you have attempted to hire during COVID, you’ve probably experienced this firsthand. Stopping by the office for orientation and paperwork before (or on) the first day of work has quickly become a thing of the past. And, with all of the safety and health concerns that come along with pen and paper exchanging hands, it’s best we move this process online once and for all. 

Even though every company has its own “onboarding process”, everyone has to complete the same basic forms in order to get paid— and to avoid fines for the employer. Using a modern payroll provider guarantees that those requirements are met. Hiring at your company might have to look different for a while but you can at least get new employees up and running quickly without worry. 

Government Compliance

Payroll mistakes are costly and can be hard work to avoid. In a normal year, you still have to understand wage and hour laws, employment regulations, and tax laws. And, I’m assuming you didn’t start a business for your love of tax law (unless you’re a lawyer, of course). 

Even the smallest mistakes leave you vulnerable to audits and penalties. Because these regulations change so quickly, it’s nearly impossible for someone wearing many hats to stay on top of. Keep in mind, all the COVID-19 regulations put in place this year have to go away or change at some point. Back to square one! 

As mentioned above, it’s a payroll provider’s core function to understand tax laws and employment regulations. We have an eye for detail, sniff out mistakes quickly, and take on the liability. Whether we are in a pandemic or not, a professional provider makes growing your business your priority again.