The payroll function in any organisation is both critical and confidential. As a result, many businesses in Australia and New Zealand believe that it is too difficult or sensitive to outsource. Here are ten reasons why, for some organisations, that this is not the case and why outsourcing your payroll may be a wise decision;
Cost. Having a staff member, whether part time or otherwise is expensive. Not just for the salary but for the seat itself. Can your office real estate be better utilised?
Cost. Having your accountant charge you to process your payroll as part of a broader service, can be significantly more expensive then a specialist payroll outsourced provider, such as the people2people managed services team.
Compliance. Keeping up to date with legislative changes can be onerous. This is more than keeping up to date with the tax rates changing at 1 July every year, it’s also the minutiae, such as the format of payslips and the reporting required for superannuation.
Convenience. Knowing that your payroll is as simple as approving a payment, weekly, fortnightly or monthly is much more convenient, than the usual back and forth with a payroll officer and the reconciliations.
Terminations and Starters. If you are in a business, which has high levels of staff turnover, then the hidden costs of payroll ‘on-boarding’ and terminations can be more onerous than you realise.
Superannuation. Now that all staff have a choice of their superannuation fund, it falls on your payroll department to ensure that the correct amounts are remitted to the right funds, at the right time.
Staff queries. If process the payroll yourself, or send it to your Accountant, the reality is that when staff need some variation to their deductions and allowances, the onus falls on you to administer these. An outsourced provider will have dedicated staff to handle these issues.
Reporting. Utilising an outsourced provider means that you can access the reporting that large corporates otherwise take for granted. If your stakeholders need specific reporting or a statutory body needs a breakdown of staffing and related costs, or you have an audit from the ATO, IRD or Office of State revenue, you know that you will be prepared.
Security. There is no need to panic when your payroll officer needs a holiday or you are needing that well deserved break. Your outsourced payroll company is paid to ensure everything runs smoothly and resources are available.
Access. Unlike the past, most outsourced payroll providers such as people2people, have cloud based systems that can be accessed by you and your staff easily. This makes approving leave, payments and having access to payslips easy and convenient. You don’t have to invest in your own system to reap the benefits.
If you are wanting to know more about outsourcing your payroll, then simply visit this page and fill out the form. One of our account managers will be in touch to explain further of the benefits of outsourcing your payroll and exactly how much it costs and how it works.