What exactly is payrolling? Why do I need it?
There’s payrolling, and then there’s payrolling. What most people think of when the term “payrolling” is used is the outsourcing of your company’s paycheck processing. What we are here to talk about is the other payrolling. This payrolling occurs when you have temporary worker that your company has engaged with and identified as an asset, but the key is that they are put on someone else’s payroll—hence the term payrolling.
Companies often wish to engage skilled workers on an as-needed basis. These workers can be hard to find, and oftentimes a company has already worked with someone who has the competencies and skills to step in and hit the ground running on a project.
Below are a few reasons you would pursue payrolling services:
Everything in business has a cost—a cost that is constantly being measured. So, any CFO knows that the costs of bringing on a full-time employee can add up fast. Benefits alone tack on an additional 18% – 20% to a base salary. We’re talking social security, Medicare, state unemployment, healthcare, insurance, and 401(k) plans. Any CFO looking to offset costs while bringing in specialized labor should pursue payrolling as an option.
Payrolling = Speed
Projects are often time sensitive, and spending time going through the administrative lag of onboarding an employee can cost you time—and ultimately money. Engaging a payrolling provider can cut that process out, and reduce the amount of lost time for you. A payroll provider handles the burden of the processes, while the worker is assigned and hits the ground running.
HR managers normally take on many tasks on a day-to-day basis, especially as companies seek leaner and more efficient teams. Adding to this already intense workload is overburdening for any staff, and ultimately leads to many things being neglected and incomplete. Using their valuable time to onboard and offboard employees who are used on a short-term basis is probably not the best use of these critical resources. Partnering with a strategic payrolling partner can eliminate the hassle of specialized short-term workers.