Processing the payroll is one of the most important tasks to be done in any business. Business owners not only want to ensure they are meeting ATO compliance standards, they also want to do the right thing by their employees.
As such, accurate payroll processing requires knowledge, expertise, experience and dedication. And with payroll being the specialist area that it is, many organisations today are recognising that placing it in the hands of external experts can provide multiple benefits.
Here are some examples.
1. Reduce recruitment stress
Recruiting payroll staff involves ensuring they have right experience, expertise and knowledge required to get your payroll done accurately. And if you’ve ever been involved in recruiting employees, you know how involved that can be. You need to define and advertise the position, go through applications, conduct interviews and run reference checks – and that’s just for starters!
With in-house payroll there’s also the problem of who does the payroll when the payroll person goes on leave. This requires ensuring that someone else is trained up, ready to jump in and do the job and deal with any associated queries.
However, when you have an external partner to handle payroll, you get immediate access to dedicated and fully-trained specialists. These experts already understand current compliance requirements, national employment standards, leave provisions, mandatory standards and more.
This means you get to benefit from their professional expertise and avoid a lot of the time and stress involved in recruiting and employment.
2. Save time and money
For many businesses, in-house payroll is a task involving a lot of expense and time. This may include:
Payroll staff employment costs – such as wages, superannuation, leave, and workers’ compensation cover.
Time factors – e.g. for entering data from timesheets, doing calculations, producing and handing out payslips, keeping up-to-date leave and employment records, submitting records to the ATO and more.
Other expenses – such as costs for IT, filing systems, staff supervision, staff training and development, checking payroll runs for errors and so on.
On top of that, payroll is a function that doesn’t generate any revenue for the organisation! This means that any way you can reduce the costs involved in payroll can potentially benefit your business’s profit margin.
Partnering with an external payroll specialist or a professional bookkeeping company is one way to go about this. This is because it helps to reduce a lot of the direct and hidden costs involved in in-house payroll processing. You simply pay the agreed amount and let your payroll specialist take care of the details.
3. Focus on your business goals
Payroll is an essential but time-consuming and costly task.
Handing this function to an external partner can allow business owners to focus on their business goals and providing top-notch services for their clients.
Like to know more?
Having an external payroll specialist on board can certainly help many businesses to reduce a lot of the time, costs and stress involved in this critical task.
If you would like to discuss how this could be of benefit to your organisation, feel free to get in touch with our team of dedicated, thorough and detailed payroll specialists. Our payroll team is based in Australia, and partners with a HR company to ensure they are across the latest information and legislative changes.