These days, many companies are wondering how to manage their payroll more efficiently. Most business owners know that this subject matter is no game. Subsequently, it requires research and knowledge of your company to decide if payroll is a low-key back office job or if they can outsource it to a subject matter expert.
First, it is important to define payroll. Payroll is the process of sufficing the payments of a company’s staff members. Therefore, providing payroll is all about calculating your workers’ earnings and factoring in our state and federal payroll taxes. In summary, payroll processing means fairly compensating staff members for their work.
There has always been a competition between back officers and subject matter experts, or in-house teams and outsourcers. However, the decision of choosing between one and the other falls completely in the hands of business owners; as they are the ones that know what is best for their business according to its necessities.
Payroll as a back-office job
A back-office refers to the side of a business that does not face the clients. It is an important department that takes care of and provides support to the main office positions with their numerous duties. Staff members in the back office can be responsible for different administrative tasks such as data management, maintaining records, providing payroll, and more.
At the same time, depending on the type of business or field, workers in the back office can also offer their experience in finance, accounting, information technology, and more. Usually, maintaining a back-office team can be costly, especially for startups and mid-level companies.
Sufficing payroll in-house, or doing it as a back-office job, usually is a great expense for businesses. Additionally, the payroll process can be very complicated. To process their payroll, companies need to follow these steps:
• Collecting data: first and foremost, the team in charge of handling the payroll as a back-office job in a company needs to collect the employees’ payroll information.
• Calculate net pay: then, they need to calculate their staff members’ gross without tax withholding and benefit payments.
• Provide payments: subsequently, your in-house team must provide payments to employees via paper check or issuing a direct deposit in their accounts.
• Report taxes: they must submit a tax filing for state and federal taxes, if necessary. In addition, they must report state unemployment payments, healthcare taxes, social security taxes, retirement contributions, etc.
• Withhold and pay taxes: lastly, your back office payroll team must submit all tax and benefit payments to the pertinent authorities, retirement plan firms, and other benefits suppliers.
Why is it important?
Back office or in-house roles are essential to companies. The operations they run are usually known as the backbone of an organization. Subsequently, when these processes are streamlined, it puts the company on the road to guaranteed success. Plus, it helps boost productivity. Nevertheless, maintaining an in-house team can be very expensive.
• Furthermore, back-office roles are vital to businesses, as they make sure that the internal data is protected at all times. They can also help business owners by providing insight into how the company is performing. Finally, back-office jobs can allow managers to see where the organization can improve. Including being careful of the allocation of the resources of the business.
Some back-office jobs are:
• Finance assistant: these individuals are in charge of supporting the finance department of a company. They can work with data entry, balance sheet building, and ensuring financial records are updated. Plus, they can maintain payroll, take care of account balances, and more.
• Human resources assistant: they are responsible for maintaining records, welcoming new company employees, and scheduling appointments. In addition, they can be in charge of managing payroll, attendance records, and other duties.
• Staff accountant: these accountants are usually responsible for keeping financial records in order, analyzing accounts, and preparing general ledger entries.
• Security operations manager: these individuals make sure to implement various security protocols, procedures, and policies to guarantee the company’s protection.
• Information technology specialist: an IT specialist typically is in charge of different network, software, and database management tasks.
• Data analysts: they generally are in charge of interpreting, analyzing, and implementing data collection systems.
• Financial analyst: a financial analyst is responsible for different financial tasks, such as determining operational costs, maintaining a database, comparing data, and increasing the business’ productivity.
• Compliance officer: they make sure that the whole company is abiding by the local laws and regulations, as well as the organization’s guidelines.
• Risk analyst: these professionals oversee investments and determine the possible risks involved in a business investment portfolio.
• Operational manager: lastly, an operational manager works alongside a company management team to develop and instate different operational procedures and policies.
Payroll with a subject matter expert
On the other hand, subject matter experts or SMEs are individuals that have advanced knowledge and are experts in a particular field. Subsequently, they usually work for companies as third-party outsourcers. These individuals are qualified to offer their guidance and strategy on certain topics.
In these recent years, these experts are in high demand due to companies needing a technical approach to their processes and culture. Therefore, more and more companies are deciding to outsource their operations to quickly enhance them. Subject matter experts are generally sought out to solve certain problems, meet challenges, and provide their unique insight on a particular process within a company.
Some duties of an SME are:
• Analyzing business activities to make sure that their resources are used correctly.
• Offering communication and documentation about specialized company operations.
• Taking a complicated concept and making it easier to comprehend.
• Creating procedures to help businesses enhance operations.
• Giving their support leadership in aligning business and personal values with a tactical vision.
• Recommending the necessary equipment, technology, and software to a company to streamline its processes.
• Assisting in account management and sales growth.
• Suffice payroll and other HR responsibilities for a company.
Benefits of providing payroll through a subject matter expert
• Save valuable time by delegating responsibilities.
• Reduce costs when hiring an outsourcer instead of building an in-house HR team.
• Diminish your regulatory and compliance risks with the support of experts.
• Obtain access to specialized and local knowledge on certain aspects of your business.
• Create payroll continuity and guarantee employees a professional payroll experience.
• Augment the security and protection of your company’s data.
• Reduce the stress of having to worry about many responsibilities at once.
• Improve your flexibility by hiring experts that know how to perform certain activities.
• Have access to a wide pool of payroll knowledge specialists.
• Integrate that knowledge with value adds services and solutions.
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