Advantages of outsourcing payroll services
- Nov 08, 2022
- 20 min read
We may be a little biased regarding outsourcing payroll services.
But we think it is so important and one service your business really should consider seriously if you hire staff.
Payroll is so much more than an administrative task.
This is the system by which you reward your staff for all the hard work they do, and for making your business the strong, successful business it is today.
Not to mention, your company’s potential as a profitable business in the future.
So, the number one reason to get payroll right in the first – is for your employees. To make them feel they are worth it and are treated well by having a seamless payroll process.
So, what does a seamless payroll look like?
It’s one where your company pays your employees the correct amount each pay run, (and this includes super to their super account!), and your company meets its payroll compliance, such as awards, leave entitlements and taxes.
Why should you outsource your payroll services?
Outsourcing your payroll can have huge benefits for your business.
Let’s take a deeper dive and consider them:
1. Allows you to use your time intelligently
Face it, payroll is a multifaceted, administrative task.
It is a long process fraught with complexities that for the uninitiated can be difficult to navigate. Therefore, taking the untrained and distracted more hours than necessary to complete.
And… just when you think you are on top of it, the next pay run is due and you have to do it all over again.
Whether you have a staff member perform your payroll or you as the business owner does it yourself, free up this time by outsourcing your payroll.
Now you can concentrate your time on the strategy and plans that will grow and strengthen your business.
2. Rely on a team of payroll experts
This leads us to payroll expertise.
By using payroll services such as Sleek’s, you now have a team of experts who you can rely on to ensure you are paying your employees correctly. A team who can shift quickly when legislation and withholding rates change, and one whom you can ask any questions relating to payroll.
Here’s an all-too-common scenario:
You happen to hear from another business founder that the award rate for your employees had gone up last month but you’re not sure by how much. You spend some time doing internet research to find out the new rate. You think you have found the correct award rate for your employees. You will need to change this rate in your payroll system moving forward but now you need to back pay these employees for the previous pays as well, from the date the award changed.
Such a time-consuming and frustrating situation, isn’t it?
3. Save big bucks by outsourcing payroll
The real costs involved in performing payroll services in-house include the staff wages to process payroll, answer employee questions, keep up-to-date with the payment conditions, as well as, the cost and maintenance of payroll software.
Sleek Scoop – here’s how to quickly estimate the cost of payroll in-house. Add up the number of hours your staff member/s spend on payroll activities. Multiply this by the salary cost, then divide it by the number of payslips processed in each payroll run.
The cost of outsourcing payroll with Sleek, we bet, would be less than the cost to complete it in-house.
Check here to compare prices or get in touch and let’s have a chat about how we can help you.
4. Always maintain payroll compliance
Your business has Fair Work compliance to follow, superannuation guarantee contributions to pay and PAYG withholding obligations with the ATO. Using the services of a payroll provider will help you meet your requirements with these entities.
To draw attention to how serious payroll compliance is – directors, HR professionals and payroll officers may be liable to prosecution in the event of any contravention.
5. Keep your data secure
One of the payroll requirements is the handling of employees’ financial and personal information, and this data needs to be protected and kept secure.
A payroll provider limits access to this sensitive and confidential information and will have processes and the digital system set up to keep your data secure.
6. Continuity of payroll services
What happens when your employee/s responsible for payroll resign, get sick or leave unexpectedly?
You will need to hire a new staff member and train them in your payroll process. This takes effort and time on your side.
When you outsource payroll, this becomes a non-issue.
Payroll ticks over month after month, and you have the satisfaction of knowing your employees have been paid and payroll is completed and recorded correctly!
7. Use the best of technology
Outsourcing payroll services can bring you the latest and best in technology – whether this is the payroll software to process and record your payroll, right down to specialised apps that link to your payroll system to customise for your business and industry.
This technology can make timesheet processing so easy, link your roster scheduling directly to payroll and make new employee onboarding a dream.
Sleek payroll services utilise the latest technology to fill the gaps and inefficiencies in your payroll.
8. Lower risk
As one of the most critical business processes, your payroll largely depends on one key person in the organisation – whether this is a senior accountant or you, the business owner.
And what about payroll fraud through misallocating funds, inflating timesheets and payroll ghosting by appropriate separation of duties?
This risk and reliance on one person can simply be eliminated through outsourcing payroll services.
Is it time you found out the benefits of outsourcing payroll for your business?
Get in touch with the Sleek payroll experts today.
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