Popular research states payroll outsourcing as the number one task for small to medium businesses to address. This is especially relevant to Australia, which has the most complicated payroll system in the world. You didn’t go into business to spend all your time ensuring you are executing your payroll efficiently and compliantly with so many options available—leave it to an expert.
Outsourcing allows you to give direct deposits to your employees, determine manufacturing costs (if you need to), and you can even hand over roster management. Also, crucially, outsourcing keeps you consistently compliant with any changes in government legislation, which is chiefly important if your workers are spread out inter-state, allowing you to avoid hefty tax penalties as a result of late or incorrect filing.
You will know, as a business owner, how much time it takes to turn timesheets into pay checks, not forgetting to process deductions and taxes. In this economic climate it simply makes more financial sense; outsourced payroll frees up precious time and money that can then be re-assigned to other areas of your business that are more time-hungry, encouraging your business to grow.
Over the past few years, outsourced payroll has become more widespread, with multiple alternatives to in-house administration that can be tailored to suit your needs. You can also request progress reports to track your outgoing costs, allowing you to keep on top of how your business is running.
Still prefer to keep your payroll in-house? Put very simply, a good payroll service system needs to do three things: Pay your employees on time, pay your taxes on time and file your tax forms on time. There are software programs available to help with this process, but they only provide what can be said to be advanced spread sheets. To ensure the deductions, allowances and extras are being calculated are implemented correctly, as well as being up to date, will remain your own responsibility.
Failure on any three of these points can land you in some area of trouble, the last two in particular, and a closer looks reveals that the process is much more complex, even with just one employee. All allowances, overtime, superannuation, and bonuses need proper management; plus, if your employee(s) work flexible hours this only adds to the workload.
The potential costs to you are not just monetary, keeping your employees happy by paying them correctly and on time is as essential as your time is valuable. Letting an expert handle your payroll can reduce your exposure to the risk of penalties and the consequences of making mistakes, which far outweigh the cost of outsourced payroll. More details in this post: http://www.goldhillgeneralstore.com/the-benefits-of-online-payroll-companies/
Making a mistake when processing payroll is costly to correct, even more so if the error is not spotted until weeks or months later—late filing, in general, can lead to tax penalties calculated at a percentage rate which increases over time. Why not switch to payroll outsourcing to avoid these pitfalls and give yourself peace of mind? Companies such as Employment Innovations provide fully outsourced services with a variety of options available to suit any needs.