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  • Paper has played a huge role for businesses. Legal documents and contracts can be found in offices around the country. Business cards and print ads helped to seal deals for decades. Even money is printed on paper. Thanks to technology, however, the times have been a changin’.

    In this digital age, businesses can cut down on paper usage in favor of online documents and processes. It’s become so popular that, according to a study on document-creation site Nitro, 49 percent of CEOs name sustainability as a top three initiative for their organization. A paperless workplace is a great way to achieve that goal.

    Why Businesses Go Paperless

    At this point, you may be thinking, “Yeah, that sounds great, but how does going paperless actually help me?” Independent Business Consultant Larry Alton lays out six big reasons on Inc.com on why businesses should make the move to cut out paper:

    • Time
    • Access
    • Space
    • Security
    • Money
    • Environment

    Today, there’s no need to physically print out, file, and search for documents. Everything can be securely stored online through the cloud, which means less time spent handling paper documents that could fill several filing cabinets or storage boxes. Also, online documents can be accessed 24/7 from any location with an internet connection.

    After all of that, there’s also the savings. Alton cites that paperless offices save “roughly $80 per employee (annually) in costs related to paper, ink, toner, storage space, and postage.” He also adds that the average firm uses more than 10,000 pieces of paper in a year. That means a paperless initiative can help both your wallet and the environment.

    However, it’s tough to create a completely paperless business. According to Nitro, only 3 percent of businesses have eliminated paper from every process. 

    Between old traditions that die hard or businesses that still need to maintain at least some sort of paper usage, a 100 percent paper-free environment isn’t necessarily attainable. However, businesses can still receive some of the benefits of going paperless by making small changes over time. One great place to start is paperless payroll.

    Start Small with Paperless Payroll

    Changing your payroll process can be an easy first step toward going paperless. Instead of dealing out paper checks for every single employee, businesses can work with an online payroll provider to streamline the process and save through direct deposit (also known as electronic funds transfer) or global cash cards. There’s added costs to paper checks.

    Just how much can businesses save on paperless billing? Due to physical resources and processing fees, it may be more than you may think. A report in Business News Daily states that “businesses save between $2.87 and $3.15 per pay run by paying employees electronically, such as via direct deposit, instead of via paper check.” The report also points out that online pay stubs save an additional $1.20.

    Online payroll is one simple way to cut down on some unnecessary costs and inconveniences. As a Professional Employer Organization, we can provide online payroll services to make the move to a paper-free company. Contact us today to talk to one of our experts about online payroll services and software for your business. 

  • Payroll is an important part of every business. While some small business owners take the time and effort to handle payroll administration in-house, certain factors can signify that outsourcing payroll with a PEO might be in your best interest. Here are some signs that it may be time to consider a switch.

     Image of a business owner considering online payroll services.

    1. When You Just Don’t Have Enough Time

    Business owners have plenty of work to do, and managing payroll is just another task that fills up your schedule. According to business counseling nonprofit SCORE, over half of small business owners spend at least 3-to-5 hours each month to manage payroll in-house. 

    Those are valuable hours that could be spent focusing on ways to grow your business. Depending on how much you work each week – The Alternative Board cites that half of small business owners work more than 50 hours per week – outsourcing these services can save you that precious time that owners constantly need.

    2. When You’re Worried About Payroll Tax Compliance

    Compliance issues can come about in a couple of different ways.  As discussed, processing payroll is a time intensive and tedious process, which can cause certain compliance requirements to slip through the cracks.

    Additionally, you may lack the expertise in knowing exactly what you need to do to keep your payroll compliant with any related regulations. Either way, mistakes can happen when you haven’t been trained to handle payroll.

    Just how big of a concern are payroll tax penalties? In 2013, the IRS doled out 6.8 million penalties, costing business owners a combined $4.5 billion in fees. These penalties range from simply not filing your payroll taxes on time to more complicated issues like not weighing multi-state payroll compliance needs for minimum wage and other regulations. If you’re not careful, you might be subject to some fines, on top of the time and money spent managing your payroll.

    3. When You’re Tired of Dealing with Paper

    After years of managing payroll, a business can go through a lot of paper. While some owners are attached to handing out physical checks, paper documents build up over time and take up plenty of storage space. That also means that you have to dig through all those files when you or your employees need to reference old documentation. With online payroll, those hassles are eliminated, as everything is securely stored online and can be accessed 24/7 with an internet connection. 

    There’s also the monetary benefit of cutting out paper payroll. Offices tend to save “roughly $80 per employee (annually) in costs related to paper, ink, toner, storage space, and postage” by switching to paperless payroll. Also, many PEOs won’t charge you extra for direct deposit services, so you’ll save a decent chunk of money for switching to a service that makes the payroll process simpler for both you and your employees.

    4. When Your Business Starts to Grow

    Business growth is great, but it comes with some extra responsibilities. As your business grows, so does your payroll. That means that payroll management will take longer, involve more chances for error, and make for even more paper printouts. Of course, it also means that other parts of your business may require more attention as well. It’s a good problem to have, but one that requires your full attention for your business to continue to grow.

    Whether your business is growing or you’re noticing another sign that it’s time to outsource your payroll, Group Management Services can help. As a Professional Employer Organization, we specialize in providing comprehensive HR solutions for businesses, including online payroll services. Contact GMS today to talk to one of our experts about how we can help your business through payroll management.

  • Let’s be honest; what business owner looks forward to managing payroll? While payday may be exciting for your employees, it’s likely that you’re not thrilled about having to put together payroll reports, track deductions, and oversee every other critical aspect of payroll administration, especially if you do everything by paper. 

    For some small business owners, payroll administration is just a necessary part of business life and the business isn’t big enough to justify its own HR department. While payroll administration is necessary, it doesn’t have to be a big burden. Online payroll software can give you the tools to take some of the pain out of payday preparation. Here are a few questions you should consider when evaluating your payroll management process.

    Small business owner using online payroll software. 

    Do You Spend Too Much Time on Payroll Administration?

    Payroll management takes time. A survey conducted by the National Small Business Association found that more than half of owners who handled payroll internally spent at least three to five hours per month on the administration of payroll taxes alone. That time doesn’t even include other key payroll functions like processing paychecks, keeping records, and answering questions from employees. 

    Five hours per month may not sound like a lot, but it adds up to 60 hours of payroll administration per year. That’s more than a full work week of time solely dedicated on payroll, and that’s if you only spend five hours per month. Depending on your situation, you could easily spend more time to try and keep your business compliant with payroll tax requirements. If you cut down the time you had to spend on payroll administration, it would free you up to focus on other key projects that can help you grow your business (or even take a well-deserved break every now and then).

    Are You Afraid of Payroll Taxes?

    It’s important to spend time to make sure your payroll is managed correctly, as noncompliance can be costly. According to the Federal Register, the Department of Labor increased the penalties for payroll tax violations effective Jan. 13, 2017, making penalties even more expensive now than they were in the past. 

    When you aren’t a trained payroll professional, mistakes can happen even if you spend more time on payroll tax management. A miscalculation or missing piece of information is all it takes to incur a penalty. Payroll software allows you to easily keep track of deductions online without having to shuffle through old sheets of paper to determine if you did everything right.

    Is Your Business Growing?

    Even if you have a handle on your business’ payroll now, that may not be the case in the future. The more employees you add, the more work will be necessary to complete payroll. If you handle payroll offline, that means more storage space for documents, more potential for mistakes, and more strain on your schedule. 

    Just because your business grows doesn’t mean that your already-hefty workload needs to get bigger. Online payroll allows you to manage everything from any location as long as you have an internet connection. Thanks to the ability to complete payroll in a fraction of the time, you can add more employees without worrying nearly as much about how much longer it’ll take you to handle payroll administration each month.

    Online Payroll for Small Businesses

    Small business owners wear many hats, but you don’t have to be on your own when it comes to payroll management. Outsourcing payroll administration to a Professional Employer Organization allows you to lessen your workload while gaining the benefits of online payroll services. Not only does this mean you can make the move to online payroll, but you also have access to a dedicated payroll specialist who can provide you with help when you need it.

    Considering investing in online payroll software? Contact GMS today to talk to one of our experts about how payroll software can help you and your business.

  • Whether you’re trying to find a way to save time and energy by outsourcing payroll administration or your old payroll partner just isn’t cutting it, you’re going to have to deal with the process of switching to a new payroll system, also known as payroll conversion. A rough transition to a new payroll system can lead to serious issues, including IRS penalties for non-compliance. Fortunately, there are some ways to help alleviate some potential issues that can arise when you convert your payroll process to a new system.

    A small business owner going going through the payroll conversion process with a PEO. 

    Conversion Timing

    Once you’ve decided that it’s time to switch to a new payroll provider, it’s important to consider when you want to start the process. Planning a conversion at a certain point in the year can help simplify the conversion process. 

    Typically, the end of the calendar year is one of the best times to undergo payroll conversion as it allows you to start the new system off fresh regarding balances. You can also convert payroll at the end of a quarter, but you’ll have to enter historical data like employee earnings, taxes, and deductions based on the time of the year. If you decide to convert in the middle of a quarter, you’ll have to make sure everything matches up on the exact dates, which can leave you open to a greater potential for errors and a longer conversion process. 

    Data Transfer and Verification

    No matter when you decide to undergo payroll conversion, you’re going to need to transfer a lot of data to your new payroll company. A good payroll partner will have a set list of information you need to provide and how it should be delivered. Some companies may ask you to manually enter data yourself, but others will simply ask you to provide your information physically or electronically and they will transfer it to the new system for you. 

    Depending on the company, they may even tailor your setup checklist to your company or the payroll company you worked with previously to simplify the process. In general, the more your new payroll company takes off your hands, the easier the conversion process will be on your end.

    Once the information is in the system, it’s important to ensure that everything is set up properly and that all the data provided is correct. A new payroll company can test the accuracy of both the system and the data by running your old system at the same time as your new system to cross-reference key details so that everything runs as it should once you’re completely switched over to your new payroll process.

    Payroll Tax Management

    There are many different functions of payroll management, and handling payroll taxes is an extremely important one. One third of small businesses spend at least 40 hours per year managing payroll taxes, so you want to make sure that your new payroll partner has a payroll process that doesn’t complicate payroll tax management and reporting. 

    When you’re ready to switch to a new payroll partner, ask about how potential vendors update tax table information and convenient options for sharing information so that you aren’t left in the dark when it’s time to manage payroll through your new payroll system. In fact, you may find that some payroll partners can take on some of the responsibilities and liabilities involved with payroll taxes. This not only can help simplify the payroll conversion process by lowering the number of tasks you need to manage, it can save you time and energy for years to come.

    Customer Support

    Your new payroll partner is there to make your life easier, so don’t be afraid to ask questions and find out just what level of support they offer. These questions include:

    • Do you have any relevant clients that I can call for a reference?
    • Will I have a consistent contact during the payroll conversion process?
    • What hours is customer support available and how are they available?
    • Do you provide a checklist or timeline for what happens during the transition and who is responsible for these tasks?
    • How much do you help with payroll compliance issues?
    • Will you keep me up to date with any new payroll laws or changes to current regulations?
    • How will my employees access their payroll information and documents?

    If a potential payroll partner appears to dodge your questions, that could be a sign that they aren’t the right fit for your business. Instead, they should provide clarity as to how they’ll simplify the conversion process, which should include assigning you a dedicated point person and a detailed setup checklist. This list should clearly lay out the payroll conversion process, including meetings, system training, and other demos to make sure that you know how to work with the new system and avoid any early hiccups during the transition.

    The Advantages of Payroll Management Through GMS

    At GMS, we know that the process of switching to a new payroll partner and online payroll software can be stressful. That’s why any new GMS client is assigned a dedicated coordinator who will help guide you through the payroll conversion process, which includes gathering necessary documentation, entering data into the system, and communicating key details to ensure a smooth transition to GMS.  

    While some companies solely handle payroll, payroll administration is just one of many vital HR services that GMS offers. We provide comprehensive HR solutions for small business owners, including benefits administration, risk management, and other functions. As your business grows, your time becomes an increasingly valuable commodity. We help you reclaim that time to focus on building your business while strengthening your company through expert HR management.

    Ready to make the switch to a new HR partner? Contact GMS today to talk to one of our experts about payroll administration and other key HR functions.