Improving Manufacturing Efficiency: The Benefits of Outsourcing Payrolling

Are you considering outsourcing your payrolling to a strategic staffing partner to help manage your contingent workforce? Outsourcing payrolling presents a variety of benefits to manufacturing facilities by providing them with the option to select and screen contingent workers while also receiving the administrative and compliance employment benefits of a staffing partnership.

Doherty Staffing Solutions has employment expertise with a variety of contingent workforce management solutions, including payrolling. In this article, we will share how outsourcing payrolling works, how it can lead to increased efficiency and productivity in your manufacturing operation, and what program services are provided when you partner with a payrolling solution provider.

What is payrolling? How does it work?

Payrolling, not to be confused with payroll, is a contingent workforce strategy in which a manufacturing facility’s hiring personnel select the workers that they want to hire, and those workers are placed onto the payroll of a trusted partner to handle their compensation, benefits, onboarding, and more. This allows you to add workers to your organization without adding to your headcount.

Additionally, this creates less of an administrative burden on internal hiring teams. By outsourcing your payrolling to a staffing agency, you can delegate these responsibilities to experts who specialize in payrolling management, allowing your manufacturing facility to focus on its core operations.

What does Employer of Record (EOR) mean in payrolling?

When outsourcing payrolling, the strategic workforce management partner you choose becomes the Employer of Record (EOR). Employer of Record is a service provided by staffing agencies where they become the legal employer of your manufacturing facility’s workforce. This means that the staffing agency takes on the responsibility of payroll processing, tax compliance, and other employment-related tasks.

By partnering with an EOR, your manufacturing facility can simplify its payroll processes and ensure compliance with employment laws and regulations. By streamlining these processes, manufacturing facilities can focus more on production goals and facility initiatives. Next, we will delve into more detail about the specific benefits of outsourcing payroll, as well as the program services provided in a payrolling solution.

Benefits of Outsourcing Payroll

Outsourcing your payroll services to a staffing agency can offer several benefits to your manufacturing facility:

1. Reduced Administrative Burden:
  • You don’t have to calculate and pay employment-related taxes, reducing the risk of errors and penalties.
  • The staffing agency handles worker’s compensation and unemployment claims, freeing you from complex paperwork and potential liabilities.
2. Mitigating Risks:
  • If you’re hiring independent contractors, this can be risky, as you might be responsible for payroll taxes if misclassified. Your strategic payrolling solution provider handles this classification, reducing your exposure to risk.
  • Part-time workers and interns come with specific regulations. Staffing agencies’ payrolling solutions ensure compliance, minimizing risks associated with these positions.
3. Making Smarter Hiring Decisions:
  • With an external partner handling payroll, you can focus on evaluating your temporary workers’ performance without the pressure to immediately convert them to full-time, direct workers.
  • This allows you to make well-informed decisions about long-term hires.
4. Faster Staffing:
  • Staffing agencies have a pre-vetted talent pool and a streamlined onboarding process, which can significantly reduce the time it takes to fill open positions.
  • This minimizes disruptions and keeps your production moving forward.
5. Increased Efficiency and Focus:
  • By outsourcing payroll and related employer functions, you free up your team to focus on core facility initiatives and projects.
  • Customized payrolling programs ensure you get the right talent you need, maximizing your team’s productivity.

In summary, outsourcing payrolling services allows you to focus on your core facility operations while your strategic workforce management partner handles the complexities of staffing and payroll. This translates to reduced administrative burden, minimized risks, smarter hiring decisions, faster staffing, and ultimately, a more productive and efficient manufacturing facility.

Now that we have covered the benefits of outsourcing payrolling, we will dive into the specific program services most commonly offered.

Payrolling Program Services

When you partner with a staffing agency like Doherty Staffing Solutions, you gain access to the following payrolling program services:

  • Calculation, filing, and payment of all payroll taxes
  • Complete payroll preparation and delivery
  • Direct deposit or pay cards available to workers
  • Deductions for wage garnishments and child support
  • Management of state unemployment claims
  • New hire reporting requirements
  • Medical and dental insurance plans for eligible workers, plus benefits coordination services
  • Elimination of workers’ compensation risk, as well as claims administration and associated expenses
  • Onboarding and offboarding administration
  • Reduced employment-related costs for contingent labor

These services are the building blocks of the benefits that we covered in this article, providing a more streamlined and efficient payrolling process for your facility.

If you are seeking a payrolling solution provider with over four decades of employment expertise, get connected with our team at Doherty Staffing Solutions! We have extensive experience working in the light industrial industry to provide dynamic and affordable contingent workforce management solutions that help boost the productivity and profitability of manufacturing facilities throughout the Upper Midwest. Contact us to get started!