Category: Payroll

21 Feb 2019

Payroll Outsourcing: What is it and why do it

Payroll Outsourcing Defined

Payroll outsourcing simply refers to the hiring of an external firm that will be responsible for some or all of the payroll functions for the company. These companies generally take the responsibility of paying the employees, distributing pay slips, obtaining the appropriate and up-to-date payroll software and making the necessary statutory deductions. Many companies whether large or small find it necessary to outsource their payroll function as a makes their job while ensuring that they are fully tax compliant. Payroll outsourcing is the fastest-growing aspect of the global human resource outsourcing (HRO) industry and research conducted estimates that that it is expected to grow at a CAPR of 4.4% during the period 2016 – 2020.

Why Outsource Payroll?

The benefits of outsourcing your payroll should definitely be considered before making a decision to hire a payroll outsourcing company.

  • Payroll is a time-consuming process. Outsourcing your payroll process to a third party and allows you the time and convenience to focus on your core business with the knowledge that your employee’s work hours, pay rates and wage deductions are being handled.
  • Outsourcing your payroll reduces the possibilities of tax compliance errors and possible fines that might be associated, as well as likelihood of missing key tax deadlines. That is because the payroll is being handled by trained experts that have the responsibility of being aware of all changes that are being made by the tax authority and making the necessary changes to ensure compliance with government regulations. So as an employer you can focus on other aspects of the business without the need to worry about missing tax deadlines.
  • Payroll is not just about getting your employees paid on time however, that is an important aspect of the payroll process. Ensuring that employees are paid on time and that their statutory and employee deductions are accurate of the payroll process. Missed pay deadlines can lead to unhappy employees and continuous missed pay deadlines will result in. If considerate time and focus is not dedicated to the process of payroll, it can negatively affect your company, your production and your overall bottom-line. If you are constantly paying your employees late and missing pay deadlines then you should outsource your payroll process.
  • Outsourcing your payroll is also cost-effective. Cost-savings can be calculated based on the time savings that is not spent on conducting your own payroll. Time saved is money saved. Outsourcing your payroll allows you to save time in the following ways allowing you to focus on the overall company business.
    • Calculating payroll each pay period per employee
    • Creating and Distributing pay slips
    • Preparing and sending payroll taxes and tax returns to the government.
    • Outsourcing your payroll also tends to less expensive than keeping payroll internal.

Things to consider when choosing a payroll outsourcing provider

To ensure that you have a seamless payroll process it is important that as a company you do some research into the payroll industry prior to choosing your payroll provider. Here are some things to consider when choosing a payroll outsourcing provider.

  • Price – what is the price and additional fees that  the company is charging and is it worth the service that they are providing?
  • Service – what are the services being offered?
  • Reputation – What is the company reputation? Reputation is a critical factor as the reputation will help to dictate when can be expected from your payroll provider. As this process is outsourced, business owners will not be able to oversee the process as they would with their other operations. There is therefore a risk of using an unreliable firm to conduct your payroll which can lead to more problems than solutions. It is important to review the company’s reputation whether by get references from other companies or other means available to ensure that you will receive quality service.

Want to outsource your payroll services. Contact us at 1-876-971-7632 or email sales@caribbeanhrsoluions.com for more information.

 

Payroll Outsourcing Market 2017 Global Share, Trend, Segmentation and Forecast to 2021
http://www.digitaljournal.com/pr/3558598#ixzz5en0D0IoM

The Pros & Cons of Outsourced Payroll

https://yourbusiness.azcentral.com/pros-cons-outsourced-payroll-3039.html

 

Why Payroll Is One Function You Should Outsource

https://smallbiztrends.com/2014/11/outsourcing-payroll-tips.html

 

 

 

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11 Jan 2019

CHRS celebrates employees at inaugural Grand Gala

Since August 2010, Caribbean HR Solutions has been providing seamless Human Resource Outsourcing (HRO), Recruiting, Payroll and Business Process Support solutions to new investors entering the business landscape of Jamaica. The company has been making its mark by servicing major players within the Manufacturing and Tourism and Airline industries as well as being a key contributor to the rapid growth in the Oil and Gas and Business Process Outsourcing (BPO) industries.

We have supported our client base by providing them with our high-quality HR Program Outsourcing, Payroll & Benefits, HR Consultancy, Executive Recruiting, High-Volume Recruiting and Employer of Record (EOR/PEO) services. Our business success is marked by our depth in local and global HR Expertise, the skillful deployment of HR Technology, and a genuine approach to Relationship Management.

As a company we have had a great 2018 and we are thankful to all our employees, clients, shareholders, and partners for their hard work and support. We capped the year off with our 1st CHRS Grand Gala that was held at the Day-O Plantation. As we celebrated this milestone, the Jamaica Gleaner was on hand to celebrate with us. See the link below to their article

http://jamaica-gleaner.com/article/social/20181221/caribbean-hr-solutions-celebrates-employees-inaugural-grand-gala

 

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15 Nov 2018

The Cost of Payroll Errors

Processing payroll is a critical aspect to your company. Employees want to assured that payroll is being properly calculated and that they are paid on time or production can be affected. There are many ways both indirectly and directly that payroll errors can prove to be costly for your company. Here are a few

Time (Labour) spent on correcting errors

Every payroll error that is made MUST be corrected. The payroll has to be accurate for taxation and recording purposes. The employee must be paid what they are due. That means that the time that that employee could have been doing something else is now spent correcting errors which in some cases can take more time to do that than the payroll had initially taken.

Interest and Penalties From Payroll Errors

It is important to ensure that your payroll calculations are in compliance with the law. Failure to do so can result in interest and additional penalties being enforced by the government.

Loss of Employee Trust due to late or short payments

Employees expect to be paid accurately and on time. When paychecks are late or short they will affect the lives of the employees. Employees will become dissatisfied with the company which can result in lower productivity and absence.

Cost of rehiring due to payroll error turnover

When payroll errors occur, particularly when they occur more than once, some employees will decide to leave the company. Companies must at that point seek to replace these employees which will incur additional costs in recruiting, interviewing and training.

 

Caribbean HR Solutions, as a payroll outsourcer, can aid in preventing payroll errors. Their experienced payroll staff will manage your payroll processes; making payroll seem easy. You can save time and money in your payroll process. Contact us at 1-876-971-7632 or email at sales@caribbeanhrsolutions.com.

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19 Jul 2018

The Real Cost of Not Outsourcing Your Payroll

Each and every business is different from the next: different in its size, different in its goals and different in its needs – but at the end of the day, payroll is something that every organization must manage.

When approaching payroll, there are two options: complete it in-house or outsource it to professionals. In running your business, you will undoubtedly be doing everything in your power to minimize financial risks, maximize your core business activity and out-do your competitors. However, turning down the opportunity to outsource payroll is often unhelpful to these aspirations.

Here are just a few reasons to consider outsourcing your payroll:

  1. You Are Incurring Direct & Indirect Financial Losses
  • You Have the Cost of Financing In-House Payroll
    Clearly, choosing to complete your payroll in-house comes at the cost of having your own payroll team. This practice is considerably expensive, as you must pay all the associated wages and benefits of employing the team, not to mention the other hidden employment costs, such as staff-retention and recruitment costs. If your business is reasonably small in size, there’s a considerable chance that the cost of employing this team would be significantly greater than the cost of using an outsourced payroll service as required.
  • You Must Purchase and Update Expensive Software / Technology
    One thing we can all agree upon is that payroll software is not cheap. When choosing to complete your payroll in-house, you will need to purchase and update the latest software for all your payroll needs. Such programs can include “benefits management” software, “time and attendance” management, as well as other services such as the automated sending of pay slips. By contrast, those who choose to implement payroll outsourcing have the privilege of a simple periodic payment. This means that their whole payroll function is taken care of in this one payment.
  • You Have the Cost of Providing Training
    Having your own payroll team comes at the cost of providing effective training. To ensure compliance, you must ensure that your payroll employees are always up-to-date with the latest government regulations and any changes in policies. Providing this training is time-consuming and costly. Those who choose to use outsourced payroll gain access to payroll experts, without having the worry or financial burden of providing the latest training.
  1. You Do Not Have Industry Experts to Ensure Compliance

As mentioned previously, payroll mistakes are all too common and all too easy to make. For example, you may assume that the overtime rate is 1.5 times the employee’s hourly rate, but this is not always the case. These unintentional mistakes can place your business in hot water. By contrast, those who choose to use payroll professionals have the peace of mind, knowing that the experts are always up-to-date with every last detail. Choosing to outsource payroll ensures constant compliance.

  1. You’re Wasting Valuable Time

I’m sure you’d agree that time is one of the most valuable resources. Completing your own payroll is hugely time-consuming, as it requires attention to detail and tedious re-checking of data every pay period. This process consumes efforts which could potentially be invested towards your business ventures. Any alternative which allows you to reclaim this time should be considered as highly worthwhile. Payroll outsourcing is so valuable as it allows you to reclaim this time, rather than spending it on administrative duties.

  1. The Knowledge Behind Your Payroll May Leave

Processing payroll is hardly an easy feat. Not only does it require a complex understanding of surrounding regulations, but also how to complete it for your particular business. In recruiting your own payroll officer or payroll team, you encounter the risk of the employee/s leaving, and this knowledge leaving along with them. Training and onboarding a new payroll officer for your specific business can be a mammoth task, often leaving your payroll processing in jeopardy while this retraining takes place. If you choose to outsource your payroll, you do not have to solely rely on your internal payroll team.

Depending on the size, structure, and industry of your business, you may find that some of these disadvantages do not apply to you, however, it’s likely that a majority of these setbacks will apply to your organization. Payroll outsourcing often offers a cost-effective solution to completing payroll alongside the added benefits of increased security, time-effectiveness and compliance, giving you complete peace of mind.

 

Read the full article here:

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