October 24, 2014
Outsourcing payroll online: A step that has come of age
03/05/2012

Using online payroll services has greater advantages today then at anytime in the past.

According to Bob Curran, CEO, Employer Services Online, Kennett Square, Pa., the benefits of using online payroll services include:

- Real-time access to payroll information before processing

- Store and retrieve human resource data

- Ability to export information from an online system to a general ledger or billing system, and

- Unlimited opportunity to bring all your data into one place.

Curran said “reporting is huge” through an online payroll service, noting associations can get instant as well as custom reports easily from such a service.

“You can have all your data in seconds, and there is no hardware and no software, so nothing to update,” he added.

An online payroll service might not be for all associations. For those organizations with 15 or fewer staff members who want to keep payroll services in-house, “there are tools that will offer the advantages of online,” Curran said.

But the complexity of today payroll rules and taxes make large staffs a prime candidate for the online payroll services.

“Rules are changing everyday, you need to be partnered with a solid payroll company. The penalties and interest are not worth it,” Curran said. Also some companies, including Employer Services Online, assume liability for compliance, relieving associations of that burden.

The biggest risk of any Internet-based service is hacking. Curran advised that associations should look for companies that use encryption technology, such as firewalls, especially if the service exists on a cloud. Private clouds are another level of security. And to ensure a payroll company is viable, he suggested associations use firms that have passed the SAS 70 TYPE 2 (now SSAE 16) audit, which is performed annually. Details: www.EmployeeMax.com.


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