Payroll can be complicated and time-consuming and when it comes to taxes, it is named as the most burdensome. A business may hire an external company to handle all payroll functions. In turn, this reduces the need for in-house trained staff, saves time, and lets the business gain peace of mind.
What is the Difference Between Payroll Outsourcing and Employer of Record (EOR)?
Knowing how a payroll company is different from an Employer of Record (EOR) service will help your business make the best partnering decision. A payroll company focuses on payroll tasks solely and their role is to give businesses the tools necessary to calculate these tasks accurately. In contrast, an EOR service takes the extra step. On top of handling the organization’s payroll, they also ensure the business is meeting the current tax and employment standards and handles other HR tasks like onboarding, employment verification, background tests, and more.
What are the Benefits?
Save Time
Payroll processing inside your business is a time-consuming process. Keeping track of benefit deductions, new hires and terminations, paid time off as well as federal and state regulatory changes can be frustrating tasks. An all-in-one payroll solution can save your business a lot of time which allows you to redirect that saved time back to your business.
Save Money
The direct costs can be greatly reduced by working with an outsourcing provider. A large, established company can afford to maintain a payroll department. But, for a small or medium-sized business, having an in-house payrolling department can be a time and money burner. By outsourcing this process, your business will save money by staying up-to-date on software and regulations.
Team of Experts
Most business owners and related staff don’t have time to research and study constantly changing regulations, withholding rates, and government forms. By utilizing an outsourcing company, you get all the benefits of a highly trained, expert team. They are up-to-date on the ever-changing rules and regulations and payrolling software so that you don’t have to be.
Gain Peace of Mind
With the help of a professional service provider, the hassles and pain often associated with processing payroll are gone. You provide the basic information, and your outsourcing company takes care of the rest. No headaches, no hassles. You now have the time to focus on running your business.
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