Outsource Payroll Management
Next time you get your paycheck you should seriously consider taking your Payroll Administrator out to lunch. Payroll Administration is an extraordinarily complicate job. Here is a sampling of the responsibilities a Human Resources Administrator must perform to do her job. In any given pay period, your Payroll Manager must course of action and issue employee paychecks plus calculate statements of earnings and deductions. She has to keep accurate track of employee time, production, and benefits data from time sheets and other records. She also has to provide information to employees and managers on payroll matters, tax issues, assistance plans, and collective agreement provisions.
If that weren’t enough your Payroll Manager must keep up with new legislations. This is especially true in light of the current economic situation. for example, the new American Recovery and Reinvestment Act of 2009, effects how much employees need to contribute to their the COBRA medical premiums should they be laid off involuntarily and how much credit the employer can claim to offset the balance. If all this sounds like a lot of gobbledygook to you think of how your poor Payroll Manager must feel! (if you are interested in this particular issue you can check it out on IRS.gov)
A workable different to this administrative soup is to hire a specialized organization that can take up the administrative duties of a Payroll Administrator in addition as other Human Resources roles such as Benefits Administration. A Profession Employer Organization (PEO) is an administering company that becomes the employer of record for the client company. The employees in this example are leased back to the client firm. This approach not only offers administrative relief for a company executive, it can also minimize liability stemming from Human Resources issues such as Payroll Administration.
Another option is the Administrative sets Organization (ASO) solution. An ASO is capable of doing all the Human Resources activities that a PEO can do but it does not require the administrative company to be the employer of record for the employees. The additional bonus is that the client company can pick and choose ala carte Human Resources jobs to outsource such as Payroll or Benefits Management. Now that you’re educated on the intricacies of a Payroll Administrator’s job don’t you think she deserves to be taken out for lunch!