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PAYROLL ADMINISTRATION: THE WHY, THE WHAT, AND THE HOW

Business owners know nothing is more important to a workforce than getting paid
on time. However, letting a third party handle regular payroll administration
can feel a bit daunting. By helping business owners overcome this anxiety, you
can help them boost their efficiency by removing a time-consuming task.

Play
Listen to the article: Payroll Administration: the Why, the What, and the How
7:51



As a trusted advisor, it's helpful to understand and convey the value of payroll
administration to your clients. This can enhance your service offerings and
contribute to your success. In this post, we’ll explain how to do just that.

We’ll cover:

 * The finer points of payroll administration.
 * The benefits to both trusted advisors and their clients and members.
 * How to sell these benefits to skeptical clients, including 3 common questions
   you’ll get and how to answer them.

By the end, you’ll be prepared to answer any questions from your clients, which
means you’ll be better positioned to help them grow their business through
efficient payroll.


WHAT IS PAYROLL ADMINISTRATION?

In short, payroll administration is the process of managing a company’s employee
payment systems.

Payroll administration involves:

 * Calculating wages.
 * Withholding taxes.
 * Maintaining payroll records.
 * Ensuring compliance with labor laws and regulations.
 * Tracking employee hours.
 * Managing benefits and deductions.
 * Issuing paychecks or direct deposits.


A TIME-CONSUMING TASK THAT HAS TO BE ACCURATE

Every business has to deal with payroll. It’s a time-consuming process that only
gets more challenging the larger a company grows. Businesses that operate in
multiple markets, or who have non-standard employees (e.g., remote workers or
workers on flexible schedules), may have even more complex payroll needs.

Most importantly, it’s a process that’s extremely sensitive to errors.

Missed or delayed paychecks can cause major problems for a business’s employees,
damaging morale and trust in the organization. Non-compliance with shifting tax
laws can result in significant financial penalties. Repeated issues here can
affect the long-term health of the company.

Given its importance and the damage that errors can cause, businesses must
devote the right amount of time and resources to getting it right the first
time. This can be especially taxing to small and medium-sized businesses (SMBs),
which already work with less manpower than their larger competitors.

Third-party payroll administration offers a solution.


WHY ADDING PAYROLL ADMINISTRATION SERVICES IS THE RIGHT MOVE FOR INSURANCE
BROKERS

Managing payroll is often a time-consuming and ongoing task that many businesses
struggle with alone. Without substantial time and resources, companies typically
need to hire skilled employees to handle payroll consistently each week. Small
and medium-sized business (SMB) owners are especially affected by the time and
complexity involved.

As a trusted advisor, you can alleviate this burden for your clients by offering
payroll administration services. This addition not only enhances your service
offerings but also provides valuable support to businesses in need.


THE BENEFITS OF PAYROLL ADMINISTRATION SERVICES

Outsourcing payroll administration offers numerous advantages over handling it
internally within a business.

Payroll administration can:

 * Reduce the risk of errors that can lead to costly penalties and dissatisfied
   employees.
 * Reduce the risk of liability with ever-changing tax and labor laws.
 * Allow business owners and in-house teams to focus on strategic initiatives
   instead of repetitive administrative tasks, which can save time and
   resources.
 * Provide access to advanced software and expertise that might be too costly to
   maintain internally.
 * Provide access to a network of payroll specialists for unique or complex
   payroll situations.

As a trusted advisor, helping your clients understand the value of payroll
administration services can be the difference between you and your own
competitors. However, anytime you’re dealing with a sensitive subject like
payroll, you’re bound to encounter some tough questions and legitimate
skepticism.


HOW TO EXPLAIN PAYROLL ADMINISTRATION BENEFITS TO CLIENTS

Businesses will rightly have plenty of questions when you raise the subject of
payroll administration services. You’re trying to convince them to give up a
significant amount of responsibility over the process, which can cause anxiety
over who is ultimately responsible for their employee’s paychecks.

When discussing the benefits of payroll administration with clients or members,
highlight these key points:

 * Emphasize the reduction of liability and risk associated with payroll errors
   and non-compliance with tax and labor laws.
 * Point out the time and resource savings, allowing business owners to
   concentrate on growth and strategic priorities.
 * Explain how outsourcing payroll provides access to cutting-edge technology
   and expert support, which can be particularly beneficial for small to
   medium-sized businesses.
 * Additionally, stress the value of having a dedicated payroll specialist who
   can offer personalized support and guidance.
 * Lastly, showcase success stories or case studies that demonstrate how
   outsourcing payroll has positively impacted other businesses in similar
   industries.


THREE COMMON PAYROLL ADMINISTRATION QUESTIONS AND HOW TO ANSWER THEM

By understanding and effectively communicating these aspects, trusted advisors
can help their clients and members make informed decisions about the benefits of
payroll administration.

 * Why should we consider outsourcing payroll when we have an in-house payroll
   professional?

Outsourcing payroll allows your business to leverage the expertise of a team of
payroll professionals rather than relying on one individual. You’ll also gain
access to advanced payroll technology that streamlines the entire process. This
frees up your in-house employees to focus on strategic tasks like growing the
business.

 * How does outsourcing payroll help with compliance issues?

Professional payroll services stay updated with wage laws and tax requirements,
helping businesses stay compliant, and avoid penalties. A dedicated specialist
offers expert support and utilizes a national network for regulatory changes.

 * How secure is our payroll data with an outsourced provider?

Reputable providers use advanced security measures like encrypted transmission
and secure storage, complying with strict industry standards. This ensures
high-level data protection that might be costly to implement internally.


PARTNER WITH BBSI FOR A RELIABLE PAYROLL ADMINISTRATION SOLUTION

Managing employee payments accurately, efficiently, and staying up to date on
payroll laws is a tiring task for business owners. Outsourcing payroll offers
significant benefits, such as fewer errors, assistance with complex regulations,
and access to advanced technology and expertise.

Insurance brokers can leverage these advantages to differentiate themselves and
offer invaluable support to their clients, and BBSI is the perfect partner to
provide this service.

BBSI offers its referral partners access to a reliable payroll administration
solution tailored to meet your client's needs. Our teams of dedicated payroll
specialists help with accurate payroll processing, freeing up your clients to
focus on strategic business growth.

By integrating BBSI’s services, you can enhance value and help your clients
confidently navigate the complexities of payroll.

Contact BBSI today to explore how a partnership can drive growth and efficiency
for your clients.

Disclaimer: The contents of this white-paper/blog have been prepared for
educational and information purposes only. Reference to any specific product,
service, or company does not constitute or imply its endorsement,
recommendation, or favoring by BBSI. This white-paper/blog may include links to
external websites which are owned and operated by third parties with no
affiliation to BBSI. BBSI does not endorse the content or operators of any
linked websites, and does not guarantee the accuracy of information on external
websites, nor is it responsible for reliance on such information. The content of
this white-paper/blog does not provide legal advice or legal opinions on any
specific matters. Transmission of this information is not intended to create,
and receipt does not constitute, a lawyer-client relationship between BBSI, the
author(s), or the publishers and you. You should not act or refrain from acting
on any legal matter based on the content without seeking professional counsel.


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