As an employer people are your most precious wealth. It is necessary to make your payroll process one of the most important in your organization. Getting your payroll solution wrong can have a serious impact on ensuring that you have an engaged workforce. Everyday payroll is becoming more of a science due to ever-changing legislation such as auto enrolment, shared parental leave and the payrolling of benefits. On top of these organizations, they are faced with an ever decreasing talent pool of payroll professionals resulting in tough competition to find the right talent.
Outsourcing can take your tension out of payroll. They let qualified industry experts manage the service on your behalf. Outsourcing has many benefits which helps companies to focus on their key business strategies.
Time saving and convenient
Payroll can be time consuming and complicated. It needs a lot of attention to detail and can take more time as staff numbers grow. Outsourcing payroll processing your key personnel such as the admin HR and accountants can have more time to focus on the value adding activities of your business.
It is cost efficient
Instead of making major investments in personal recruitment training and software you can outsource the payroll services as needed. It can be a lot cheaper and can also help you control your costs. The efficiency of the business will be increased because you are getting expert help without the need to hire expert’s full time.
Compliance with local regulation
One of the most difficult tasks for small to medium businesses is consenting with laws, regulations and mandatory rules, especially when foreign governments are involved.
In payroll preparation the existing labor laws of the country of business should be complied. This includes taxes, social insurance and country-specific statutorily contributions, filing and payment of these will be handled by the payroll provider. so you can be sure that you are up to date with the changing regulations and that the filings are accurate and on time.
By outsourcing payroll to a trustworthy service provider, you can delegate this task to a company that is aware about local, regional and national laws and regulations. You can prevent penalties or inessential audits that are triggered by your non-compliance.
A top payroll provider will make sure that your payroll process complies with the up to date rules. They also ensure that you have a better understanding of payroll laws.
Expertise of the payroll provider
You can avail of the expertise of experienced payroll teams. These experts are required to be updated with the changing regulations and requirements so you can avoid mistakes and costly penalties. You can also have access to advanced technology that these experts used to manage important data and ensure better data integrity.
Prioritizing core business
Payroll is improbable to be a core operation of your business. Because it is a non-core function, any time and resources that you apply to it, means less time you have to aim on revenue-generating activities. By setting an expert in control of your payroll processing, you can finely utilize your time in regions more closely similar to your core business or revenue centers, like sales, customer service and marketing.
Efficiently leverage new technology
Pure Cloud-based software has aided to start up a global revolution in business operations and employment. Remote working and flexible working schedules are increasing exponentially on the back of the capacity to access operating systems from everywhere where there is an internet connection. Software platforms such as KeyPay, Xero and Employment Hero are preceding the way in Accounting, Payroll and HR respectively.
Small and medium businesses are a vital supporter of this transformation. A move towards software vendors now charging on a ‘per-user’ model makes it economical for them to subscribe to previously cost prohibitive industry-leading technology solutions. This has flattened the playing field between small, medium and large businesses by extremely diminishing the fixed cost of infrastructure.
Outsourcing the payroll method compounds this benefit further. As payroll software is usually coupled with HR software, employee onboarding and contracts can now be handled completely digital. Payroll and automatic Modern Award interpretation can be handled by an expert remotely all within the same ecosystem. A flawless experience with a professional overseeing the process for a fraction of the traditional in-house cost.
Business continuity and risk
In addition to overseeing compliance, other risks that are required to be handled relate to key person point dependency, security and fraud.
HR and payroll mostly sit in the top ten most vital of business processes, with small and medium businesses almost always depending on a single resource for their delivery. This person is usually a senior person ‘wearing many hats’ or owns the business themselves. Even though key person risk can be substantial for businesses of any size SMB’s are most at risk. Partnering with an outsourced payroll provider removes this risk. It enables time-poor senior staff to aim on activities producing more value to their business.
Payroll fraud costs a business a lot of money. It can increase in a number of different creative ways such as exaggerating, ghosting timesheets and misallocating funds. They often take place when businesses lack controls without a specific division of duties. Small businesses commonly do not have the resources or budget to appropriately de-risk in this area. By outsourcing to a company that focuses on payroll services, a business can function with the self-assurance that the risk of payroll fraud has been greatly decreased.