Saving time and money with payroll are two advantages of outsourcing your payroll function the payroll company can also manage the information for your 401(k) and can even handle simple human resources tasks.
Investment companies now usually require companies to enter their data into the 401(k) system.
“(We) can create an export file that a business can upload into the investment company,” says Robert Gialamas, president of Paytime.
While companies once faxed or called in the information, the latest technology is a Web-based solution that allows clients to enter data anywhere they have Internet access.
“We have clients who use our desktop software that automatically communicates with our servers,” Gialamas says. “These clients like having a copy of their payroll data onsite, use our HR features of the software and can utilize tools such as a ‘what if?’ calculator, built-in report writer and HR module.”
The amount of time and money that outsourcing payroll and other functions can save your company varies, but nearly every company will come out ahead.
“We do return on investment spreadsheets, but they are very custom,” Gialamas says. “We find out where all their aches and pains are. How are you entering your 401(k)? How long does it take? Who’s doing it? What is their rate of pay?”