What Does a Payroll Management Company Do?

Learn about payroll management services

Written by Steve Thompson

Payroll management is something that every small business owner must consider. Since the process of paying employees can become both complicated and tedious, it pays to have an experienced, knowledgeable professional managing this department. However, there are different types of payroll managers to consider.

What is Payroll Management?

Payroll managers are in charge of making sure that employees' time is calculated accurately, taxes are taken out of pay in correct amounts and employees receive their checks on time. In short, they oversee the process from start to finish. A business might have one person responsible for managing payroll or several.

Who Is in Charge of Company Payroll?

Ultimately, a business owner is responsible for making sure that employees are paid accurately and on time. However, he or she might choose to delegate this responsibility to an individual, department or third-party service in the interest of time and productivity. If a business owner takes care of payroll management himself, other duties get pushed aside.

Should You Handle Payroll In-House or Outsource It?

As mentioned above, it is not mandatory that payroll management be conducted in-house. Many business owners, particularly those of smaller operations, often choose to outsource the task of managing payroll. They might do this through a web-based service, a software program or an HR company.

Whether you choose to handle it in-house or through outsourcing is a personal decision. If you choose to do it in-house, much of the work will have to be manual, which can eat up employee hours and ultimately cost more money.

What Is a Payroll Manager Responsible For?

Many times, payroll managers are part-time employees who only work during the end of the pay period. However, whether a full-time or part-time employee, or a third-party service, a payroll manager is responsible for a number of things:

• Learning and applying federal and state tax requirements;
• Calculating time and attendance for all employees;
• Removing and setting aside taxes for each employee;
• Printing checks or scheduling direct deposits;
• Shifting funds so that money is available for payroll;
• Taking note of any other aspects of payroll, such as insurance, retirement funds, expenditures and more.

Is Your Payroll Manager Successful?

When making decisions about payroll management, it is important to consider your current system. Are checks delivered on time? Are employee checks correct in amount? Are your financial records complete and free of errors?

If not, it might be time to consider a payroll management alternative, such as a software program or payroll service. In the interest of time and accuracy, it is important to consider all options and make the best decisions for your business and your employees.

Are you ready to get payroll management for your business? Submit a free request for price quotes and get matched to multiple dealers who will try to get you the best deal.

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