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Outsourcing payroll services: The key for government contractors who choose to avoid risk

Small businesses that process payroll know it is a headache. This is especially true for government contractors, who are under stricter requirements for paying and reporting payroll for their employees. For example, wage and hour requirements force contractors to monitor location, job role, hours worked, and charge codes for every direct labor cost that is associated with a contract. This one step can be a time-consuming task for contractors.

The primary accounting auditing agency for government contracts is the Defense Contract Auditing Agency (DCAA) which implemented new rules to compel contractors to be more responsible in the way they account for all aspects of a contract. They are now required to recommend that payments be suspended on any company’s contract that is deemed to have a non-compliant accounting system.

Government Contractors run their business effectively and avoid compliance issues when outsourcing payroll

In addition to the time-consuming nature of payroll and the risk of losing out on potential federal procurement activity, many government contractors file their taxes late or have incorrect filings. The IRS recently released a report that showed 40% of small businesses pay an average penalty of $845 per year for late or incorrect filings.

Manage your time wisely when outsourcing payroll

Meeting deadlines is difficult enough, without adding the administrative burdens involved with payroll processing, tax filing, and researching payroll related law changes. Government contractors can outsource payroll administration to reduce the time spent on this necessary, but troublesome chore.

Government Contractors run their business effectively and avoid compliance issues when outsourcing payroll

Mitigate your risks
with payroll administration you trust

In order to compete in the competitive market of federal procurement, contractors must be proactive throughout the entire payroll administration process and establish accounting protocols that will ensure compliance with record-keeping, wage and hour laws, tax filing, and time management regulations. Non-compliance is not an option. Payroll administration outsourcing is the perfect tool to mitigate your risks because we know the laws, we adapt to new laws, and we keep our clients informed so we all stay ahead of compliance related issues.

The XcelHR Value

Outsourcing payroll administration is an effective way to accurately pay your employees and make sure payment is received on-time. At XcelHR, we know that you are busy, so let us handle the changing payroll related regulations. Let us handle your payroll and payroll tax filings… so you can get back to growing your business. Take advantage of these XcelHR benefits:

  • Payroll Processing Solutions: Our all-in-one, seamless payroll processing system is a reliable way to pay employees on-time and accurately.
  • Time Management Systems: Our DCAA audited time management systems report and collect all payroll related issues.  All that is needed is employer or manager approval.
  • Employee Self-Service: Employees can view their paystubs through 24/7 access to our web, tablet, or smartphone applications.
  • Record-Keeping: Our system provides all necessary reports for employers to look over, and to provide government auditing agencies.
  • Payroll Tax Relief: Our tax department records, collects, and files all payroll related taxes.
  • Administrative Relief: Get rid of the time consuming burdens associated with payroll processing. We can handle that for you.
  • Compliance: Government contractors that use payroll outsourcing services demonstrate compliance by working with a firm that specializes in that department.