Four Benefits of PEO Payroll Administration

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Small and medium-sized business owners tend to be fearless and multi-talented. They are usually quick to take on almost any job at their companies in the name of getting things done and making forward progress. Mention the word “payroll,” though, and many of them will visibly wince. You may be in that group. 

Payroll is far from the most fun part of running a business. It’s complicated, time-consuming and relentless. There’s no taking a break from it.  

Table of Contents

1.  Small Business Payroll Duties

2.  Four PEO Payroll Benefits

2.1  Peace of Mind

2.2  More Time

2.3  Lower Tax Risks

2.4  Data Accessibility and Security 

3.  The Axcet Solution for Payroll Administration

Small Business Payroll Duties

When you have employees, you have daily payroll responsibilities to ensure your team is paid accurately, on time, every pay period.

Payroll administration entails an extensive range of ongoing, detailed, administrative and regulatory tasks that include:  

  • Employee wage calculations 

  • Benefit deductions, child support and other wage garnishments 

  • Medicare withholdings, as well as federal, state, Social Security and local tax deductions – including differing taxes if your employees don’t all work in the same place. That can be a complicating factor for companies with employees in more than one state or city

  • Overtime and bonus calculations  

  • Paid time off, sick days and holiday pay 

As an employer, you also must: 

    • Manage pay options 

    • Set up payroll for new hires 

    • Collect and retain data in payroll and employee files 
    • Update payroll records to reflect changes in salaries, retirement contributions and family status 

    • Generate bank transfers or other payment instructions
       
    • Respond to employee questions and requests for compensation information 

RELATED: Key Benefits of Outsourcing Your Payroll >>

Keeping up with the persistent demands of payroll administration and compliance, pay period after pay period, can be overwhelming, especially as companies grow. Each item on a payroll administrator’s to-do list is critical, and there’s no room for error. Mistakes can cost you time and money, create tax liabilities and upset your employees – a recipe for disaster and distraction at any small business. 

For many small and mid-sized Kansas, Missouri and Kansas City employers, a preferred solution is to rely on a professional employer organization’s (PEO) payroll services. Outsourcing this important part of your business to a qualified payroll administrator eliminates all the hassles of getting your employees paid. 

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Four PEO Payroll Benefits

PEO payroll services deliver four valuable benefits for small and medium-sized employers:  

1.  Peace of Mind 

Employers who partner with a PEO like Axcet HR Solutions never have to be concerned about payroll errors, tax liability or missed deadlines. When a PEO payroll company is responsible for making sure your employees get paid, you have no more worries about deductions, withholdings or other calculations being done correctly. You benefit from a team of seasoned HR and payroll specialists who have your back. They leverage industry best practices and leading technology to ensure greater efficiency and accuracy, legal compliance and on-time payments. 

RELATED: How to Process Payroll for Deceased Employees >>

With Axcet, the payroll process is turnkey. When supported by Axcet’s employee time and attendance software, all clients must do is share their employee hours and pay rates or salary amounts and then approve their payroll online. We handle everything else. 

Axcet’s partnership allows employers throughout Kansas, Missouri and Kansas City to divert the attention previously consumed by payroll administration to strategic initiatives that lead to faster growth.  

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2.  More Time 

Instead of the mountains of forms you must complete when you manage mission-critical payroll administration in-house, working with a PEO payroll company dramatically reduces your paperwork load. 

Kansas City PEO payroll providers keep track of garnishments, benefits deductions, new hires, terminations and always-changing regulations. A PEO stays ahead of those tasks while complying with the labyrinth of state and federal laws that regulate payroll taxes, labor, immigration, health insurance and discrimination. 

If your small or medium-sized business in Kansas, Missouri or Kansas City does not have a sizeable in-house HR team – and very few do – those ongoing tasks are daunting. Rather than those responsibilities consuming your already-limited time, a PEO payroll administrator can take them off your plate, along with: 

  • Issuing and filing tax documents, like 940, 941 and W-2 forms 

  • Reporting and depositing local, state and federal taxes
      
  • Ensuring compliance with minimum wage and overtime requirements  

  • Managing data input  

RELATED: Ask the Payroll Expert - How Long to Keep Payroll Records >>

3.  Lower Tax Risks 

Taxes are more than an unpleasant reality. Mismanaged, they can lead to hefty penalties or arduous audits that derail your finances or even threaten your business’s longevity. 

Even one small oversight related to a withholding that goes uncorrected for an extended period can become a major liability. But a PEO’s clients do not have to worry about such issues.  

Each Axcet client has a dedicated payroll administrator who is supported by an expert team that specializes in managing the complexities of taxes, legal compliance and related laws. It is our job to ensure that benefits and other withholdings, as well as overtime or other additions, are calculated accurately so you always pay the precise amounts you owe your employees every pay period. We take that responsibility very seriously. 

Axcet’s PEO payroll services protect small business clients from year-end tax surprises that could undermine their success. And, as a certified PEO, Axcet is solely liable for the federal employment taxes on wages paid to clients’ employees, another benefit that insulates clients from penalties.  

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4.  Data Accessibility and Security 

Technology limitations are one of the top reasons small and mid-sized firms in Kansas, Missouri and Kansas City outsource HR tasks to PEO payroll companies, which usually have advanced and secure systems that simplify life for both employers and employees. Partnering with a PEO payroll administrator gives your company access to the latest HR technology without the costs and headaches associated with purchasing, maintaining and upgrading systems on its own. 

It also means you can get things done more efficiently. Axcet’s client portal is a valuable resource that makes it easy to generate standardized reports like invoices, payroll registers and check journals and to customize reports to fit your specific needs. We empower your workers, too, by giving them 24/7 access to downloadable pay and benefits information through the portal. 

RELATED: Top Eight Payroll Mistakes Small Businesses Make >>

For example, employees can use the portal to easily update their pay-related personal information and find answers to questions like how much paid time off they have available. This transparency builds trust and loyalty. 

A PEO payroll provider protects against data breaches and cyberattacks with strict security protocols, providing the added benefit of ensuring your information is safe. Axcet’s payroll system is monitored around the clock, and we maintain redundancy, back-ups and on-premises storage, as well as an auxiliary location, so we can guarantee secure and uninterrupted payroll services. 

Axcet HR Solutions Takes the Stress Out of Payroll Administration

A PEO partner will take the stress out of payroll administration. Schedule a free consultation with Axcet to learn how you can sleep easier knowing: 

  • Your employees are being paid accurately and on time, every single pay period. 
  • Your company is complying with payroll and tax laws.  
  • You’ve made all the correct withholdings for your business; and 
  • You are spending more time on strategic priorities that will help your company grow.

Payroll Administration: Payroll frustration? We can help.

Written by Jennifer Bevitt

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