So, you’ve realized that in-house payroll processing requires you to hire an onsite payroll staff, buy and maintain payroll software, oversee the payroll department and ensure your business stays up to date with the ever-changing details surrounding payroll compliance. Ouch! How much is it to “hand that headache off to someone else?”
If you’re wondering what the average cost of a payroll company is, unfortunately there is no easy answer. It’s going to depend on a lot of details specific to your company. To give you an idea, here is how that number is often determined by a service provider:
Basic Costs
Basic services of payroll usually include calculating payroll and tax obligations for each employee, printing checks, depositing into employees’ accounts, project management and reporting.
The frequency of payroll each month and the number of employees is the largest factor in determining the basic cost of services. Paychecks can be issued on a weekly, bi-weekly, or monthly basis and weekly payroll distribution will often cost more than monthly (because the payroll tasks outlined above need to be performed 4-5 times per month versus 1). You can pay as little as $25/month for basic costs if you have a small number of employees and as much as $150.00/month if you have a larger company, depending on your basic needs and frequency.
Tax filing assistance is usually offered at little to no charge at the year’s end, too.
Delivery Method & Additional Costs
The delivery method each pay cycle also plays a significant role in cost, especially if you have a lot of employees. Will paychecks be mailed to you at the end of each pay cycle, to distribute on site? Or will you need each check mailed to each individual employee? If your service provider has a special program that permits you to print and distribute checks internally, you can eliminate postage and handling costs all together.
Also, adding new employees may come with administrative fees per employee, or put your business into a new bracket for basic services. Basic services usually cover a certain number of employees, as there is a big difference between processing payroll for 5 employees each month and processing 25 employees each month.
Keep in mind that a payroll service provider will be an expert in payroll and will likely get the job done a lot more effectively and efficiently than you can each pay period. If you only have one employee, outsourcing could still be the better option. Getting fined for a missed payment or reporting error could end up costing more than the fees incurred by hiring someone else to handle it – and in most instances the payroll company will take full responsibility for errors!
Employer Solutions Plus represents a number of payroll companies in order to find the perfect fit for each of our clients. Call us at 727-698-6207 to learn more.
The Added Benefits of Working With a PEO: Performance Appraisals
/in Employees, Performance /by adminBut were you aware of performance appraisals? A performance appraisal (also called a performance review or evaluation) is a method used by employers to measure an employee’s job performance. Appraisals are often used as part of the career development process to determine if a certain candidate is ready for a promotion, salary increase, or other type of workplace advancement. It’s also the official way of recording the areas in which a certain employee may not be performing well, so that if they are fired in the future all compliance bases are covered and the termination is not a complete surprise.
Many businesses understand the importance of conducting performance appraisals, but don’t know where to begin and don’t have a defined process or schedule for employee reviews. A defined process and schedule is important because it limits the variations among the workforce and ensures everyone is given equal opportunity.
Many PEOs offer access to great technology that permits employers to customize their company’s review process and improve employee performance by setting and tracking measurable goals. They may also have templates or recommendations for conducting a performance appraisal so that you can be clear and consistent with your employees each and every time … and that’s an added benefit of the PEO relationship that many business owners simply do not know!
Turnover is expensive and a PEO can help you do a better job at hiring, and most importantly retaining great employees. When you’re analyzing PEO proposals it’s important to look for the “added benefits” offered by each. Many have a variety of products and services for both you and your employees that will instantly improve the workplace.
To learn more about PEOs and other forms of outsourced HR solutions, contact us directly at Employer Solutions Plus!
The Benefits of Hiring Veterans
/in Hiring & Firing, Veterans /by adminHave you hired a veteran? What were the benefits your workplace experienced? To learn more about hiring, visit our “Hiring & Firing” section of the Employer Solutions Plus blog or call our team at 727-698-6207.
What is the Average Cost of a Payroll Company?
/in Cost Reduction, Payroll Administration /by adminIf you’re wondering what the average cost of a payroll company is, unfortunately there is no easy answer. It’s going to depend on a lot of details specific to your company. To give you an idea, here is how that number is often determined by a service provider:
Basic Costs
Basic services of payroll usually include calculating payroll and tax obligations for each employee, printing checks, depositing into employees’ accounts, project management and reporting.
The frequency of payroll each month and the number of employees is the largest factor in determining the basic cost of services. Paychecks can be issued on a weekly, bi-weekly, or monthly basis and weekly payroll distribution will often cost more than monthly (because the payroll tasks outlined above need to be performed 4-5 times per month versus 1). You can pay as little as $25/month for basic costs if you have a small number of employees and as much as $150.00/month if you have a larger company, depending on your basic needs and frequency.
Tax filing assistance is usually offered at little to no charge at the year’s end, too.
Delivery Method & Additional Costs
The delivery method each pay cycle also plays a significant role in cost, especially if you have a lot of employees. Will paychecks be mailed to you at the end of each pay cycle, to distribute on site? Or will you need each check mailed to each individual employee? If your service provider has a special program that permits you to print and distribute checks internally, you can eliminate postage and handling costs all together.
Also, adding new employees may come with administrative fees per employee, or put your business into a new bracket for basic services. Basic services usually cover a certain number of employees, as there is a big difference between processing payroll for 5 employees each month and processing 25 employees each month.
Keep in mind that a payroll service provider will be an expert in payroll and will likely get the job done a lot more effectively and efficiently than you can each pay period. If you only have one employee, outsourcing could still be the better option. Getting fined for a missed payment or reporting error could end up costing more than the fees incurred by hiring someone else to handle it – and in most instances the payroll company will take full responsibility for errors!
Employer Solutions Plus represents a number of payroll companies in order to find the perfect fit for each of our clients. Call us at 727-698-6207 to learn more.
Payroll Software or Payroll Company – Which One Does My Business Need?
/in Cost Reduction, Payroll Administration /by adminIt’s at this time you begin to consider your options for operating more effectively and efficiently. Do I need payroll software or a payroll company?
Here are some things to consider with each:
Payroll Software
Payroll Company
Do you know which one is right for your company yet? As we said earlier, there truly is no “one size fits all” approach, which is why Employer Solutions Plus represents vendors in multiple categories.
When comparing the cost of each, you need to look beyond the initial price tag and ask yourself how much time you will spend managing the payroll process each month. As you know, time is money and if payroll is pulling you away from your revenue generating activities week after week it may cost you a lot more than you think to manage in-house!
Contact our team to discover which option is best for your particular business.
Meet Our Founder: Torri Sloan
/in Meet Our Team /by adminAll new clients get the benefit of working with our company founder, Torri Sloan. As a broker, companies look to Torri for creative ideas to help alleviate their administrative headaches. We interviewed our founder this week so that you can learn a little bit more about her!
What was your first job?
My first job was actually in accounting (accounts payable) for a cruise only travel company. I worked in this capacity for 5 years and realized that I truly liked talking with and helping people. I always enjoyed assisting my 150 outside sales agents in making sure that their customers’ money went toward the perfect vacation.
How did you end up in the HR/PEO world?
I ended up in HR outsourcing, or PEO as it was called in the 90’s, by sheer luck. When I realized that I wanted to actually be in “sales” the only opportunity that was available or that someone would take the risk on was sales for a PEO company. I didn’t have sales experience at the time but was given valuable sales training through Sandler Sales and was eventually sent on my way to open a brand new market in Upstate NY, where I found great success and realized I loved the industry!
What’s the most rewarding part of your job?
The most rewarding part of my job is providing the business owner with an entirely customized solution that better equips them for taking their business to the next level, and helps them become an employer of choice.
Do you belong to any professional organizations?
I belong to a number of professional organizations but the most important decision I made when I first started Employer Solutions Plus was joining the Centre Club. It’s a professional business club that focuses on helping existing members grow in each of their businesses. I sit on the Club’s Ambassador Council, and it’s a great place; it really is my home office away from home!
I also belong to CFA (Commercial Finance Association) and sit on their board as one of the speaker chairs. Outside of professional organizations, I volunteer with Metropolitan Ministries on their Ambassador Board.
What do you like to do outside of work?
In my spare time I love spending time outside with my husband and our 2 dogs. I also enjoy relaxing and recharging my batteries with a great massage or facial!
Is there something you want to know about Torri that we didn’t touch upon this week? Let us know! To learn more about Employer Solutions Plus, follow our blog or stop by our Employer Services page.
What Are Pre-verified Resumes?
/in Background Checks, Hiring & Firing /by adminThis is exactly why many companies are gravitating toward pre-verified resume services. Pre-verified service providers are third parties that certify a person’s credentials before he or she advances in the application or interviewing process.
An employer signs up for this service, and then the service provider confirms important details on the resume surrounding work history, educational background, and certifications. The candidates that “pass the test” are passed along to the employer. This not only saves employers time in the hiring process, but also prevents companies from getting too far along only to realize that certain information was fabricated or false on a candidate’s resume.
But are these services all they’re hyped up to be? It certainly depends on what type of business you are and what types of positions are available at your company. A pre-verified process by a third party is not as customized or specific as the process you may currently have in place. It’s much more black and white, whereas you may “bend the rules” every now and then if a candidate lacks a degree but makes up for it by being a great cultural fit with lots of determination and a track record of success on the job. If someone else was screening these resumes, would you ever get the chance to meet this person? Or would they disappear in the pre-verification process?
However, if you’re a staffing company that needs 60 bartenders within the next 5 days, all having a minimum of 5 years of experience, a pre-verification service may be the perfect tool for moving things along quickly!
Did you know that Employer Solutions Plus represents various types of outsourced HR solutions? Through partnerships with PEOs, HROs, and various project-based service providers, we’re able to find the perfect fit for businesses of all shapes and sizes!
Call us at 727-698-6207 if you want to learn more about solutions in hiring.
Resignations Are On The Rise
/in Employees, Risk Management /by adminThe U.S. Bureau of Labor Statistics reported that the MONTHLY average number of workers to leave their jobs in 2013 was more than 2.2 million – more than 25 million for the entire year! In 2009, the monthly average was 1.9 million. Resignations on the rise indicate a few things that employers need to be aware of:
In order to retain your top-performing employees, you have to be an employer of choice. Employers of choice follow an all-encompassing recipe of future opportunity, commitment to a strong corporate culture, competitive salaries, employee recognition, cohesive teams, community involvement, work/home balance, job security, and great benefits.
Additionally, you have to promote a working environment where honest communication is encouraged. Having performance reviews and employee/manager meetings scheduled throughout the entire year can provide your top-performing employees with a platform for conveying their concerns. If you know of problems before they arise, you can work toward fixing them. If the employees’ frustrations remain a secret, there is no possible resolution and your employees will eventually leave.
If you currently work with a PEO, ask them about what practices they have in place to help you better retain employees, and don’t be afraid to share your workplace concerns. Historically, small businesses have always had a hard time competing with the rich benefit programs and growth opportunities found at Fortune 500 companies – but with the help of a PEO you can easily (and creatively) become an employer of choice.
Want to learn more about PEOs and retaining top performing employees? Contact our team at Employer Solutions Plus.
Social Media Screening – Is it Legal?
/in Background Checks, Hiring & Firing /by adminYou can, yes, but it’s certainly not recommended. Here’s why:
Social profiles contain information that you as the potential employer would never see on a resume or cover letter. Social media opens the door to learning much more about a candidate such as their religion, sexual orientation, and race – things that are irrelevant to filling the position and adequately performing the job’s functions.
In “researching” this particular information, you can put your company at risk for various discrimination claims. Online employment discrimination is sometimes conscious and sometimes unconscious, meaning that a hiring manager or HR professional might innocently check a Facebook profile or Twitter account without realizing the page’s information affects their hiring decision.
Current policy does create legal risks for those scanning through social media pages during the hiring process IF managers are caught using that information in a discriminatory fashion. Here’s an example: let’s say you’re an employer in the state of Minnesota that prefers to employ healthy and responsible individuals. You decide not to hire a specific woman because her Facebook profile has countless pictures of her drinking alcohol and smoking cigarettes.
In Minnesota, it is unlawful for an employer to prohibit a prospective employee from using lawful consumable products, such as alcohol and tobacco. If your candidate catches wind of why they were not hired, or someone on your team accidentally lets them know – you’re in big trouble! And, Minnesota is not the only state. More than half of the U.S. states prohibit employers from taking an adverse employment action based on an employee or potential employee’s lawful conduct on their own time.
Because fairly (and legally) monitoring a candidate’s social media profile is difficult to monitor and manage as an employer, it is recommended that companies explicitly instruct and train hiring teams to not look at a candidates’ online presence. More often than not, it’s better to be safe than sorry.
If you need to access online information for any reason, employers should consider hiring a third-party to review the candidate’s social media profile and filter out any information about membership in a protected class, so that the profile and information you are looking at as a hiring manager is only information that can be lawfully considered in the hiring process.
Social media compliance is sticky, as is employment law. If you have a question or need help with a particular situation, contact Employer Solutions Plus at 727-698-6207.
HR Salaries Are On The Rise
/in Employees, Hiring & Firing, Payroll Administration /by adminHere’s some great news for HR professionals: HR Salaries are on the rise!
Numbers vary though. Earlier in the year (June of 2013) we shared a blog titled “How Much Does a New HR Manager Cost?” Salary.com stated that the median expected salary for a typical Human Resources Manager in the United States was $88,408. That number is now $88,960 – a smaller increase than what’s predicted in the Compensation Planning Survey, but an increase nonetheless.
If you’re an employer you may be trying to justify the expense of a fulltime HR professional, or an internal HR department. Not every small to medium sized business has the resources to support their own group of HR professionals at $80,000+/year, especially since these positions fall outside of the company’s core competences.
Even large companies may not be able to justify hiring an internal HR team; the amount of employee management necessary within the workplace may be tremendous, requiring a number of professionals to manage payroll, HR, administration, benefits and more.
If you’re currently indecisive about whether to outsource HR help or recruit an internal team, we encourage you to contact Employer Solutions Plus. Our team is skilled at designing cost-effective packages for accomplishing everything you need surrounding employee management. You don’t necessarily need to choose an internal or external department – you could utilize a little bit of both and only hire vendors within a specific area such as benefits or payroll. Each company’s situation is unique and requires a unique solution.
Click here to contact our team.
Restaurant Industry: 2014 Minimum Wage Increases
/in Franchising, HR Solutions for the Restaurant Industry, Payroll Administration /by adminIf you’re within the restaurant or food services industry, you may utilize a handful of minimum wage workers. Were you aware of the various state changes, effective January 1, 2014? The following states are experiencing an increase; don’t forget to update your payroll!
Also, effective July 1, 2014: California will experience a state increase to $9.00/Hour. The current minimum wage is $8.00/Hour.
For additional restaurant resources, visit our “HR Solutions for the Restaurant Industry” section. Contact our team at Employer Solutions Plus if you have any questions: 727-698-6207.