The Implications Of Raising Retirement Age Seco

The upcoming generation of seniors can expect to experience a considerably different retirement from that of their parents. With life expectancy rising the average worker should not expect to retire in their 60s but later at age 70 or later. They will have to work longer and save more money before they can retire and enjoy their retirement years.

Old People Crossing - Sign

Government officials say it was inevitable that the retirement age would rise as healthcare improved. We are forced to extend the working age for the average citizen to match the increase in life expectancy. Improvements in modern medicine and lifestyle improvements have one in four British males born today expected to reach the age of 100. This increases in life expectancy lead the government to raise the retirement age for economic purposes. Government officials claim raising the retirement age will save the British tax payer around 13 billion GBP a year.
Some employers are reluctant about the increase in retirement age and fear a decline in the quality of their workforces. Employers have noted that the performance of older workers decline with age. Older workers exhibit a reduced capacity to work and have health or safety concerns younger workers do not. Not only do older workers experience increased sickness but they exhibit a lessened interest in their jobs. These workers begin to coast as they near retirement age and their performance on the job decreases. Having these workers on the job longer could have a negative affect on other workers. These employers fear the quality of their workforce might decline as a result of the increasing the retirement age.
Some also contend that raising the retirement age will make it difficult for young people entering the workforce and eventually raise their unemployment rates. Retirement has been used as a way to phase out older workers and make way for new workers. Raising the retirement age will create a shortage of jobs in an already difficult economy. The shortage of jobs among young workers could cause resentment toward older workers if they are unable to find work.
The increase in the retirement age is also seen as a disadvantage to seniors who are working class or manual laborers. Because of the strenuous nature of their jobs they may have difficulty reaching a higher retirement age. Corporate types, who make more money, can afford to retire early before they receive their pensions and enjoy an early retirement on their savings. But, the working class will have to work longer at strenuous jobs to reach their retirement age and live off their pension.
Advocates of the working class say raising the retirement age is actually an attack on the poor and will send Britain back to the days of Charles Dickens. It was a time when the wealthy could retire from working but the poorer classes were forced to work until the day they died. Wealthy people have access to better health care and can work longer to enjoy a later retirement age. Whereas the poor who are unable to afford the best in healthcare can develop ailments that may prevent them from reaching the proposed retirement age to enjoy their pensions.
The increase in retirement age is seen as a reaction to current social changes. This response by the government could have a negative effect on workforce performance and quality of life for the poor. To counter some of the backlash over the new retirement age the government should create more jobs to ease unemployment among the young and help businesses utilize the experience of seniors with more funding for apprentice programs.

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Frank is a keen cyclist and writes for investment consultancy Aon Hewitt among other businesses on a wide variety of subjects.

The Truth about Counterfeiting


When most people think about the economy and commerce, whether on a local or international scale, the main issues that come to mind are things like personal and national debt, healthcare, employment, and social security; but one huge growing issue other than those common ones that the International Chamber of Commerce faces every single year is the issue of counterfeiting. Simply put, the act of producing fake items and passing them off as genuine items for economic gain. One of the obvious items to conterfeit is money and today, hundreds of millions of dollars in counterfeit money is being seized every year, rising substantially ever since digital printing was introduced as a standard medium of publication. But the problem isn’t just money – items such as drugs, driver’s licenses, electronics, CDs & DVDs and even clothing and shoes, are being counterfeiting at alarming rates, putting countless innocent people out of their hard earned money. Read more about the latest statistics on counterfeiting in this infographic below.

This infographic was made by Camcode, the worldwide leader in the design and manufacture of durable pre-printed bar code labels. Find identification tags from

The Cost Of Living The Celeb Life

Everyone has their own vice, but when you’re a celebrity, they are usually more expensive…and everyone seems to have an opinion about it!
Some people, while judging celebrities’ expensive lifestyles think it’s an absurd and pure ostentation, but until what point is it really?

Put yourself in their places and reflect, ; if you were a celebrity that makes enough money to cover your vices, wouldn’t you do the same?

Products as Personal Branding

Celebrities also get a lot of products just to be seen wearing it or even get it for modeling the product. Ashley Olsen who got the Louis Vuitton Urban Satchel for modeling for the product, and she’s not the only one, there’s plenty of others. A lot of celebrities buy it not only as an impulse buy or because of a vice but also as an investment, because they understand that they are ‘the product’ and that they HAVE to invest in the product to make more money. And of course, having limited edition products that cost a lot when you purchase it means that in the future it’s going to be worth so much more, so it’s a good investment both ways!

How much for the…

Handbags have always been the mother of every girl addiction, it’s a must have item for girls of every age, an item that every girl everywhere when asked, will always tell you that got her first one in their childhood. They are a great way to carry stuff and accessorize your look, so why not love it? Every woman probably has already experienced stars in their eyes when seeing the most beautiful handbag that they have ever seen. At that stage in time it’s a done deal; if the value is reasonable, the girl will put their time and effort to save money enough to buy it. When the price is completely outrageous, the bag’s worth will grow even more, and before they know it, every conversation will start with “I saw the most beautiful handbag’.

But when you are a celebrity, most of the times the dream become true, even if it is not something you have seen already, it’s just something you have thought or even dreamed about one night, like Lady Gaga ‘s Meat Handbag, Emma Watson’s Chanel Classic Diamond Forever Handbag price tagged $261,000 and Victoria Beckham Hermes Birkin Bag that cost $120,000.

It isn’t only female celebrities who spend a lot on their vices, celebrity men have been speding just as much, if not more than the women.

Men and their Motorcars

How can we expect that the male celebrities should sit at home and watch the football game while their female counterparts are out on the town spending money on fashion and fois grass. These guys have been working just as hard, and their innate need for anything that speeds, cannot be ignored.

Like Jerry Seinfeld’s sport Car Porsche 959 that costs $7000,000, Nicolas Cage’s Ferrari Enzo price tagged at $670,000 and David Beckham’s Custom Rolls-Royce Phantom Drophead price tagged $407,000.

Party Rockers in the House

Then there are habits that didn’t come with them since their childhood, these habits and hobbies were born in their teenage year. One of these status symbols is most defintely being the host of one of the biggest parties in Hollywood. As a celebrity host, nothing can be average when it comes cuisine, champagne and entertainment. Not all these real estate expenses are just for entertainment and display of wealth, but because these stars live their lives in the public eye, they make purchases focus on privacy as well.

Think in the lines of Private islands and mansions, a hidden place where they can go to escape the high life, the paparazzi, drama and bustle of their lives, but also, it’s an easy way for them to estabilish themselves as members of the high society.

Rihanna’s Pacific Palisades Mansion with 11,000 square-foot, 7 bedrooms, 9 bathrooms, 14-foot ceilings, a hot tub, swimming pool, sun deck and a 6,000-sq.ft. Garden is valued at over $12,000,000. Ozzy Osbourne’s Mansion with 10,953 square feet, 6 bedrooms, 10 bathrooms, swimming pool is worth $10,000,000 and Billy Joel’s Miami Beach Mansion with 303,310 square feet worth $35,000,000.

These are just a few things that celebrities like to spend their time and money on. “Lifestyles of the rich and the famous, their always complaing” as Good Charlotte would say, does not seem to be very far from the truth. One thing is for certain, if this had to be one of our lives, you wouldn’t hear us complaining.

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Having attained a formal education in Finance (Msc. in International Economics) Simon was inadvertently drawn towards finance blogs and extended successfully upon it by contributing to savings and family finances blogs as well. He is a long time contributor of the financial Blog of the UK short term loans provider Poundaccess, where you can read many of his writings.

Choosing Your Investment Options for This Year

funds to investDo you have any funds to invest? Have you ever even thought about investing your money? It’s not always something that too many of us think about, but if you’ve built up a significant savings pot already, investing is the perfect way to really build on this. And with many savings accounts offering interest rates that are less than the rate of inflation, if you want to build on your savings you don’t have too much of a choice, but to invest.

So, how and where should you invest? Here’s our guide to two of the best available options.

Stocks and shares ISA

Even if you don’t know too much about investing, you might know a bit about the tax benefits of ISAs, but your knowledge may just relate to the tax free benefits of saving through a cash ISA. A stocks and shares ISA offers the means to invest your money in a variety of different options, with significant tax benefits. For the current tax year, you can invest £11,280 with this increasing to £11,570 on 6th April 2013.

Investment options

Depending on the provider you choose, you’re able to invest your ISA allowance in the following:

  • Stocks and shares
  • Government bonds
  • Corporate bonds
  • Permanent interest bearing shares
  • Investment trusts
  • Exchange traded funds / commodities

Tax benefits

This is the important bit. Whilst with a cash ISA, any interest you earn is tax free, it’s a little more complicated when it comes to a stocks and shares ISA. The best way to think of an ISA is as a tax wrapper, whereby you can hold a variety of investments that are sheltered from tax. Any investments you hold will work in exactly the same way as if they had been bought outside an ISA, whereas it’s when you sell them you see the difference. When you do this there is no requirement to pay any Income or Capital Gains Tax. Therefore if you choose to use your ISA to provide you with an income, there is no further income tax to pay on that.

Self-invested personal pension (SIPP)

The problem with many pensions at the moment is that they are underperforming. Leaving your retirement pot in an underperforming pension will not stand you in good stead for when the time comes to actually retire. A SIPP enables you to take control of your pension fund and make all the decisions in relation to how your pot is invested – it’s basically a “do it yourself pension scheme”.

Many SIPP providers offer a wide range of investments in line with those offered through a stocks and shares ISA, offering a much more diverse potential portfolio than a standard personal pension.

With a low cost charging structure and online accessibility offered by many SIPP providers, it’s certainly an option worth considering.

Strategies for Long-term Investing

long-term investingIn the economic environment investors have had to endure the last 4 years, it is a wonder any can look beyond their nose to see what the long-term investment future may look like. Many investors feel as if they are simultaneously juggling a bowling ball, a cat, and a lit firework and if they drop one their portfolio will suddenly disappear. Money managers and certified financial counselors are right there with them speaking as calmly and hopefully as they possibly can about staying focused in the markets without using manipulation or any other means that may land them in trouble.

The reality is that for now, long-term investing is the most sensible way to approach the markets right now. It is certainly a wise strategy for all ties, but especially now. As Warren Buffet said, and I paraphrase, “I never get into a market I cannot endure if it should close for five years.”

Perhaps the days of gravy will return when the economy stabilizes, but if the truth be known, it is not a bad time to invest. In fact in August of 2012 over $34 billion in dividends were paid out by S&P 500 companies. It is predicted that an increase of 16% will be paid out over the previous year. Yes, corporate profits have been strong, but there is so much more to your investment strategy than an immediate payoff.

What is Long-term Investing?

According to Investopedia, long-term investing is “An account on the asset side of an investor’s balance sheet that represents the investments that they intend to hold for more than a year. They may include stocks, bonds, real estate and cash.” Taking this a little further, long-term investing usually looks at least five years down the road.

Goals of Long-term Investing

Typically, most long-term investment goals are aimed at helping the investor achieve finances needed for retirement, college tuition, owning a business, and making a large purchase.

  • Retirement: Of course, investors have their own personal reasons and goals for what they want to accomplish. In fact, under retirement, almost every investor will have their own unique thoughts on what retirement looks like and what they will want to do during retirement. Retirement may include having the home paid off, being debt-free, traveling, working on one’s golf game, starting a second career without financial concerns, volunteering overseas in an orphanage, or simply relaxing on a front porch with a glass of fresh-squeezed lemonade.

An investor who is 30 now and hopes to retire by the time they are 65 have 35 years to save. Most investment counselors will say someone needs a minimum now of at least $3500 a month in income to live modestly in a non-urban area today. In 35 years, they will need a monthly income of at least $12,500.

  • College Tuition: The cost of college tuition has risen 1,120% over the last 30 years, according to a Bloomberg report. That would mean if things progress at the same rate, parents of a new child must save nearly $500,000 over the next 18 years just to pay for four years of college that now costs $10,000 a year. It is hard to imagine tuition reaching that unfathomable level, but the point is, long-term investing must also be smart as to be able to pay the academic costs that seemingly are out of control.
  • Owning a Business: The downturn in the economy these past four years has prompted inspired people to take more control of their future as we have seen a wave of entrepreneurs enter the market place However, most of these are really small companies doing less than $12,000 a year. They are more like second jobs and are subsidizing school sports, a second car, braces for teeth, or a family vacation.

However, there are others who want something larger and are willing to pay for it. Whether it is owning a Subway franchise or two or more, a small boat tour company in Alaska, a chemical research and development start up, something in technology, or a retail store, it takes capital, and lots of it. Long-term investors understand how much it will take them to start up or purchase the company they want to own and establish benchmarks along the way. Financing issues, finding the right tea to help you, hiring the right employees, location, marketplace, and more will all make up how one goes about investing.

  • A Large Purchase: There are as many large purchases in the mind of an investor as there are people. Houses and vacation homes, cars bought debt-free, weddings, boats, endowments and other financial gifts (see orphanage above), jewelry, travel, funds for grandkids, emergency medical savings, and more can all make up the designation for a large purchase.
  • By earning an MBA in finance you will learn to build a solid understanding of long-term and managerial finance through a systematic approach to financial analysis; applying techniques for planning, forecasting and managing finances; and evaluating and recommending ways to improve your organization’s financial performance. For more information about staying ahead of your finances click here.

Three Strategies for Long-term Investing

Following are three strategies for you to consider when defining, planning and executing your long-term investment goals:

1)      Safe Strategy: This is the strategy chosen by those who do not want to take risk. This will also at best grow an investor’s money the slowest. Just because it is considered “safe” does not mean it is impervious to failure. Usually it means growth will be slowest and there will be many investors in it. It is tragic to look at your statement each month expecting some radical jump in value. Safe can also mean being in an investment like natural gas that will continue to be in demand and for which the resources are great. Index mutual funds and bonds are found here also.

2)      The Faucet Strategy: This is a strategy designed to provide a decent enough return that you will be able to draw out cash occasionally, like turning on and off a faucet, without hampering the overall growth of your investment dollars and longer-term plans. These require more aggressiveness than that of the safe strategy. Investments like these include balanced funds, gold and silver, certain kinds of stocks and real estate.

3)      High Growth Strategy: This is for those who are ambitious and want their money to grow as fast as possible and are typically seeking 12% or more in portfolio growth each year. This is achievable in some economies, but not necessarily now unless you have the brilliance of Warren Buffet. Who would not want these returns But they require much more risk and loss is not uncommon until one hits. “Gambling is not for most investors who are considering retirement, college tuition, mortgages and more. A mix of sound investment combined with some exploratory capital may be wise as one’s portfolio matures,” says Chip Hutchison of the Hutchison Group Rock Hill, South Carolina.

From the writers at RevenFlo

All About Forensic Accounting

Forensic Accountants EarnAccounting is the process of keeping up with financial accounts, i.e. keeping money in order. “Forensic” refers to something that can be used in a court of law. Therefore forensic accounting is used in investigation and court to procure evidence in relation to finances for a case.

What Types Of Cases Is Forensic Accounting Used For?

The types of cases forensic accountants work on are typically in relation to fraud, money laundering, and others types of crime involving money. This leads to forensic accountants also being called by other names, such as fraud auditors, investigative accountants, fraud investigators, and forensic auditors. If you’ve ever met someone with such a title, they investigate crimes dealing with misplaced money or suspicious financial accounts.

The Forensic Accounting Process

Because of the sensitivity of the cases they’re involved in, forensic accountants must act with utmost discretion. Typically, the crimes they work for are white-collar crimes, involving not only the money but the reputations of the account holders and other parties involved. For that reason, they have to act alone and silently when investigating an account.

While they’re investigating, they are specifically looking for fraud, or pieces of the puzzle that just don’t fit. They must first meet with a lawyer or attorney to receive details about the case and learn what evidence they’re supposed to be looking for. Afterward they figure out a plan for their investigation and retrieve the records they’ll need to search to find the evidence they’re looking for.

While the forensic auditor deals a lot with numbers, they also conduct interviews to get stories and personal accounts involving the financial dealings they’re investigating. These interviews will later serve to help the accountant to piece together the puzzle, figuring out what fits and what doesn’t. They’ll look for clues, such as personal spending that the suspect(s) may have taken part in recklessly after embezzling money from their company. It’s the accountant’s job to figure out where the money went, beyond reasonable doubt.

Once they’ve completed their investigation, they submit their findings to the court or attorney, and will likely be called to give expert testimony about their part in the investigation to present what they found to be true.

How To Become A Forensic Accountant

Once people who are good with numbers and show interest in television shows like CSI and Criminal Minds find out what forensic accounting is all about, they typically look into what it takes to gain entry into the field.

First, any aspiring forensic accountant should have at least a four-year degree in accounting, and a few years of experience in the field as well as being a CPA (certified public accountant) by passing your Uniform Certified Public Accountant Exam.

If you want to be good, you need to start out looking for errors so you can get better at catching them. Look for errors in your own work and in others. It’s good security and it gives you a head start, allowing you to stand out from any other rookie forensic accountants you may be up against when switching over.

After you get your CPA, you’ll need to go to graduate school simply to maintain the status and sharpen your craft. In graduate school, you’ll be able to find a master’s program in forensic accounting, teaching you exactly what you want to know about your field.

You’ll also need knowledge of crime and the law, which means you should take some courses in Business Law, Criminal Law, Sociology and Psychology as well as business and finance classes, which are more typical. These classes will shape you to be more well-rounded, not just knowing about finances and numbers, but also knowing better exactly what to look for, and exactly where to look.

How Much Do Forensic Accountants Earn?

According to the Federal Bureau of Labor Statistics, the median annual income of accountants and auditors is $61,690 with the lowest 10% making $38,940 and the highest 10% making $106,880. Though this statistics is not exclusive to forensic accountants, it is inclusive, so the salary you receive in forensic accounting will not fall outside of this income. With the FBI, forensic accountants start somewhere around $50k with a Bachelor’s Degree and $67k with a Master’s.

Forensic accounting is one of the more intriguing career fields to get into with options of working at companies such as Frenkels Forensics, especially for those people who are good with numbers and like the idea of investigating and figuring out what the missing pieces of a story are. It works with both finance and law, and can be a six-figure job for those who really throw themselves into it and get the highest degree of education in the field, while also gaining valuable experience and becoming the best at what they do. Now you have all the information you need to get started.

How An Individual Retail Marketing Strategy Works

Retail Marketing Strategy

Ever heard of predictive technology? You might be surprised to learn that it’s a sophisticated tracking and monitoring system that creates a customer profile of YOU, based on your purchase history at major retailers, your life stage and other data. Much of this information is obtained using barcodes—those inconspicuous black-and-white areas on packaging that the cashier scans when you’re checking out. The profiles created about you and other customers are used to market relevant products and services to you. It’s also used to target specific campaigns based on your needs and interests. Coupons, for example, are often sent to consumers because of specific purchases they’ve made. About 79 percent of consumers say they use coupons regularly, resulting in a huge cost savings. In 2011, consumers saved a sizeable $4.6 billion from coupons. There’s a lot more going on behind the scenes than you realize. Retailers, such as supermarkets, can actually sell your purchasing info to other companies. And you could even pay a different price for the same item, at the same time of day, in the same store, than another customer. Creeped out? Check out the infographic below for more details on how retailers are capturing information about you and using it to drive your shopping experience.

This infographic was made by Camcode, the worldwide leader in the design and manufacture of durable pre-printed bar code labels and Camcode asset tags for equipment.

A Solution to Consider If You Really Need to Split up

Split UpNobody enters into situations in life expecting the worst. You don’t buy a car, expecting that it will break down and leave you stranded in the middle of nowhere. You don’t apply and accept a job expecting that are going to fail, and possibly even get fired. You don’t decide to meet your friends at the pub, expecting that you will get into a big argument with them. The same holds true for interpersonal relationships. Nobody decides to live with another person, or even possibly get married, with the expectation that it will all go horribly wrong. And yet, it can happen.

There are times when personal relationships just don’t seem to be working out. If there’s a legal marriage in place, but it has been for less than a year, or if the couple want to see if they can ultimately make things work, and don’t want to get a divorce, a separation is the best choice. Although some parts of it can be as complicated as an actual divorce, it is certainly not necessarily as lasting, allowing couples to reconcile if they want to.

Other Factors Come into Play

If a couple has children, their welfare should be of primary concern. There are likely to be more affected than the adults by the break up. Children are basically defenceless against the decisions of their parents, especially if they are young. Any agreement or understanding that the parents come to must take the overall safety and happiness of their children into serious consideration. Apart from that, there are obviously economic issues that need to be resolved, as well as logistical ones. Who is going to stay in the house, and who is going to move out? Typically, the men are the ones that wind up leaving, taking up residence hopefully nearby, so as to be able to interact with the children is much as possible.

The trend of having children living with one parent has been increasing over time. In 2006, over 23% of the children in Great Britain were living in a single-parent household. This really is a shocking statistic, when one considers that just twenty five years earlier, only 7% were in the same situation. There is also a severe economic impact which affects children living in a single parent household. Over 37% of children live in poverty, compared to only 18% for children that live in families where both parents are present.

Making the Difficult Decisions

If a couple come to the conclusion that the only course left for them at the present time is to get aseparation, they should adequately prepare themselves for it. This means not only thinking through what is best for their children, but also trying to reach an agreement as to how to divide the economic resources that are available. This can mean not only a home, but also bank accounts, savings accounts as well as any investments or other assets that may be held jointly. It is also extremely important to get some reliable legal counsel. This can easily be obtained from several organizations or groups that are specifically set up to offer such advice.

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Where To Buy A Live Christmas Tree In Queens

Chrsitmas treeThere’s nothing that will quite capture the spirit of the holidays more than having a live Christmas tree. Just because you live in Queens doesn’t mean you can’t enjoy this seasonal tradition, as there are a number of locations where you can buy a live tree that are right in your neighborhood.

Green Point Trees

If you’d rather not worry about hauling your tree home or disposing of it after Christmas, perhaps Green Point Trees can help. This company will deliver, set up, and dispose of your live Christmas tree so you won’t have to worry about it. They’ll even decorate it for you for an additional charge. Several packages are available, all of which include a 6 to 7 foot Douglas fir tree. You can even upgrade to a larger tree if you’d like, and this company also sells accessories such as tree stands. For more information or to schedule delivery, call the company at 800-399-7796.

Queens County Farm Museum

Perhaps you’d rather go all out and experience a bit of the country while you’re picking out your Christmas tree. If that’s the case, you’ll want to visit Queens County Farm Museum. This working farm is just a short drive via Grand Central Parkway. While you’re here, you can explore many of the historic farm buildings, view livestock, watch farm equipment in action and of course, pick out a Christmas tree. You’ll not only find a huge selection of trees, but plenty of wreaths and poinsettias to help brighten up your home for the holidays as well.

Rite Aid

If you happen to be out picking up a prescription, visit a Rite Aid pharmacy so you can also select a live Christmas tree. Two locations here in Queens are currently offering live trees for sale. The first one is the store located at the corner of Northern Boulevard and 86th Street, where you’ll find trees located in front of the store’s entrance. There are also live Christmas trees being sold at the store located at the corner of Queens Boulevard and 58th Street. This store is directly across from Kentucky Fried Chicken, and you’ll find trees located in the parking lot that’s adjacent to this facility.

Tree Kiosks

Several tree kiosks are located in the Queens area. While you’re out and about, you just might run into a few of the ones located at:

• 46th Street at Northern Boulevard
• 30th Avenue at 33rd Street
• Woodhaven near Metropolitan Avenue
• 37th and 81st Street
• Northern Boulevard at 87th Street
• Roosevelt and 91st Street

As it gets closer to Christmas, more tree kiosks are bound to be popping up in the area. Keep an eye open for them as you’re traveling along Roosevelt Street or Northern Boulevard this holiday season.

Home Depot

The Home Depot carries a huge selection of live Christmas trees each season, and the average price for these trees are around $40 each. There are several locations here in the Queens area including:

5010 Northern Boulevard
Long Island City, NY 11101
7509 Woodhaven Boulevard
Queens, NY 11416
73-01 24th Avenue
East Elmhurst, NY 11369
11220 Rockaway Boulevard
South Ozone Park, NY 11420

7509 Woodhaven Boulevard
Glendale, NY 11385
13220 Merrick Boulevard
Jamaica, NY 11434

A live Christmas tree adds a bit of nostalgia to the season and provides a sense of calmness and tranquility among the bustle that’s associated with this time of year. If you live in Queens, you’ll be glad to know that finding a live Christmas tree can be easy and affordable to do, not to mention the fact that there’s a wide selection to choose from.

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Jeff is a blogger who lives in Queens area. Currently, he works on online visibility improvements for ArverneByTheSea project placed also in Queens area.

How Payroll Outsourcing Helps Small and Large Business Houses

How Payroll Outsourcing Helps Small and Large Business Houses

Payroll is perhaps the most important department of any organization. Even the most productive and the happiest employee would be more than shocked when he/she gets a paycheck with an incorrect amount.

There was a time when most of business houses including big and small prepare payroll and performed payroll functions in-house or within the company. In many cases, the employees faced disputes with their paychecks. And thus nowadays, many companies outsource payroll related tasks to a professional payroll services to avoid any sort of discrepancies in the paychecks and ensure that the employees get paid properly. Outsourcing payroll has come a long way in the recent past. In fact, outsourcing payroll services is now in vogue in the corporate world.

Simply put, an in-house operation opens you up for a plethora of errors. Sometimes just one seemingly simple error can cost you one or more employees. Unfortunately, this is the least of your worries. Failing to properly classify your employees can land you in deep trouble with the IRS. All it takes is a couple mistakes on your payroll, such as a setup error, or failing to make tax deposits on time, or doing payroll late, to land you in serious trouble. Thankfully these problems can be completely overlooked by outsourcing payroll to an external organization.

There are many reasons for which businesses outsource payroll services and some of them are discussed here.

  1. Saves time – Although big business houses may have the financial capacity to hire people to take care of the payroll-related jobs, but most small businesses don’t have that capacity. As a result, the task of payroll maintenance often falls on the accountant, bookkeeper or manager or even the owner himself. In most cases, these personnel have others works to manage apart from handling payroll and taking care of whether or not the employees get paid on time. Outsourcing payroll to a professional service significantly removes this burden from the employees and the management, and let them be more focused on other important works. Not only small businesses, large business houses also get the same benefits by outsourcing this tedious and onerous task to a company specialized in handing payroll
  2. Saves money – This is another important aspect of payroll outsourcing. The employees managing the payroll jobs need to spend several hours and sometimes do overtime to prepare paychecks and handle tax document for the staffs. Since time is money, to get the payroll job done within the house, the businesses often need to render extra dollars along with actual salary to the employees handing payroll.  And that often needs the businesses surpass budget. Outsourcing payroll to a professional service can remarkably reduce this expense and thus the businesses can save significant amount that they can use for some other important purposes.
  3. Ensures accuracy – Businesses, both small and large, need to be updated on all tax laws and regulations related to the business operations including payroll functions. Big business houses with separate department somehow manage to keep themselves updated and knowledgeable about the ins and outs of such rules and regulations. But staying up top of such information is really difficult for small businesses with no dedicated payroll department and thus managing the payroll functions within the scope of latest laws is next to impossible. However, with a professional payroll services, a business can expect that the payroll of the company will be surely handled within the scopes of the recent rules and regulations. Most of the professional payroll service providers keep updating software allowing for amendments and adjustments to ensure precision.

These 3 are the most significant benefits that both small and large corporate houses may get from outsourced payroll service. Besides these, the businesses can also expect to get tax advantages through payroll outsourcing.

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