3 Trends Reshaping Payroll Management

Over the past few years, employee management has changed dramatically. The future of workplace is transforming to be completely different from the one today.

While on one side, the recent shifts in HR have made employee management simpler, it has made payroll functions more complex, time consuming, and stressful. Although innovative technology has given businesses flexibility and greater control over their resources, most now prefer outsourcing their payroll management and tax filing departments.

According to a survey, nearly half of U.S. and Canadian companies have outsourced their payroll and tax filing departments. Given the shift, payroll management is likely to undergo even greater changes calling for small businesses to create more effective payroll management strategies.

Here are the leading trends that are likely to reshape the industry.

1.    Increase in Payroll Outsourcing

Experts have long been debating the need for outsourcing non-core functions. Payroll is one such function that does not contribute to the revenues or growth of the business, but can have a huge impact when performed poorly. Given that, more and more small businesses are outsourcing their payroll department to perform their routine tasks such as payroll processing, distribution of pay slips, etc. Not only does it allow them to focus on core business by entrusting the job to a competent specialist, but also allows them to stay abreast with regulatory requirements.

2.    More Compliance Burdens

In the wake of growing tax evasion scandals, regulatory and tax environment is expected to become more complex in the coming days. This might require companies to be more standardized and precise in their reporting to the federal government to achieve greater transparency in the tax system. The trend of payroll outsourcing is directly attributable to increasing complexity of compliance and regulatory system.

3.    Growing Use of Technology

Employers have to deal with hundreds and thousands of regulatory requirements which point to the complexity of the payroll system. With that in mind, tech developers have come up with highly sophisticated payroll management tools allowing businesses to manage their payroll tasks while abiding by the reporting and compliance requirements. The explosion of mobile device is ushering in a new level of technology expectation. The use of mobile technology in payroll is not common, but it is growing at a rapid pace to give both employers and employees better control over payroll data.

Outsource your payroll department to maintain your employee compensation tasks with greater accuracy and ease. The payroll experts at Basinger, CPA have experience of handling payroll tasks across a range of industries to deliver accurate and reliable services. Contact us online or call us at 435.200.5828 to hire payroll services for your small business.

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