Implementing a payroll system will add value to your business by automating payments, managing compliance, and creating insightful reporting.
Using a payroll system is one of the easiest and best ways to streamline and automate your payroll, keep track of spending, and pay employees accurately and in a timely manner. These systems also take care of the tricky compliance mix-ups and miscalculations that often create risk for growing businesses at both the federal and state levels. Your days of time-consuming spreadsheets or figuring out payroll by hand are over.
The two main choices are Administrative Service Organizations (ASOs) and Professional Employer Organizations (PEOs.) But, how will you know which is right for you?
In general, the best payroll system for your company will depend on the size and scope of the company, and whether you have your own HR department.
ASOs tend to work better either for smaller companies who can more easily manage their own HR, or for very large companies with internal HR teams.
An ASO works great for companies that want to maintain more agency regarding their employees, benefits, and Human Resources. Working with an ASO means lower entry and per employee costs, more say and control over benefits, and quicker setup for employees and contractors.
PEOs are usually better for medium-sized companies that would benefit from outsourcing their HR needs. These systems do basically everything. They function as your company’s HR department and sign on as “employers of record” by entering into a “co-employment agreement” with your company. Your employees will benefit from larger pools of partners under the umbrella of the PEO’s FEIN number. PEOs can offer competitive health insurance, comprehensive HR services and support, assistance with Employee Handbooks, alignment of company policies, and shared knowledge of employment risks.
Here's what you can expect from some of the leading ASOs and PEOs:
Implementing a payroll system is essential for any growing business that wants to automate and streamline its payroll process, while avoiding compliance issues. Deciding between an ASO or PEO will depend on the size and scope of your company, and whether you have your own HR department. Once you’ve chosen one, you’ll need to consider the features and benefits different providers offer so you can decide which one best fits your specific needs and budget. With the right payroll system in place, you can ensure timely and accurate payment to your employees while freeing up time and resources to focus on other aspects of your business.
If you have questions about implementing a new payroll system, get in touch.