Is Outsourcing Payroll A Good Idea? As more businesses follow the growing trend of outsourcing their non-core functions, it’s hardly surprising that many of them have decided to outsource payroll to service and software providers.
Research conducted by an independent payroll outsourcing company showed that over 30% of businesses are considering or already outsource payroll, and this is set to increase by up to 20% in the coming decade.
So the question remains is outsourcing payroll a good idea. Whether you are a small or large business managing your payroll solutions, take significant time and effort. There are benefits to outsourcing payroll these include :
The need to perform payroll in house becomes an increasingly difficult administrative task. As it’s not a primary function of your business, they can outsource payroll.
When you outsource payroll, you can dramatically reduce your need to prepare reports, field employee queries, work within pay conditions, timesheets, and monthly awards, all of which will take time away from your essential business operations.
As your business operation groups processing in-house payroll needs can become a significant direct cost to your business.
I need to hire training and finance apparel team and maintain outsourcing can dramatically reduce a payroll software to effectively manage pay conditions and employee queries to a payroll specialist.
By reducing the need to keep a payroll specialist and their software, they can offset these costs from the cost of your decision to outsource payroll.
One of the most significant tasks for any company with administering payroll is to navigate the increasingly complex legislative environment surrounding fair work compliance.
Any company that employs staff including payroll officers, HR professionals, and directors, and everyone else leaves themselves open to potential prosecution should they contravene any of their employees’ work contracts.
The easiest way to avoid this is to work with specialists whose job it is to ensure their partners remain compliant with all pay conditions and legislation for every employee within their partner’s business.
Matters become increasingly complicated as modern-day workforces comprise freelancers, independent contractors, part-time, and full-time employees. Each of these will require a different level of compliance with maintaining taxes compensation superannuation paid public and private holidays pay conditions and minimum pay rates.
The cost of non-compliance is significant and is one of the major reasons that outsourcing payroll is becoming increasingly popular.
For example, operating in a purely cloud-based system allies before the outsourcing of payroll within business operations to be far more flexible. That’s more and more people are working remotely the need for flexible working arrangements has grown exponentially and as a consequence has caused significant payroll difficulties for businesses around the globe.
By outsourcing payroll needs you’re giving access to software platforms such as employment hero, Keypay, Xero all of which are leading the way in HR payroll and accountancy software needs.
Medium-sized and smaller businesses mean the major benefactor of these changes as the vast majority of outsourcing payroll services shift towards software vending on a pay per use model.
This makes service far more affordable and has level to playing Field significantly between small and large businesses with decreasing the overall costs of payroll administration.
Remaining compliant is just one risk attached to managing your payroll. Other risks include fraud, security, and key person dependency.
Outsource payroll will allow streamline one of the most critical of your business’s processes ensuring that small to medium-size businesses register dependency on single resources to deliver results.
Most times they ask one senior employee to wear many hats, placing this amount of responsibility in the hands of a single person substantially increases the risk for your business.
But outsourcing this risk not only reduces the stress on any single employee but exponentially add value to your business.
Outsourcing payroll needs just makes sense. The Dean of businesses processing their payroll needs in-house is quickly ended. As there are many significant benefits to outsourcing your payroll needs. Pick up the phone today: contact and outsourcing payroll specialist and is a decision you will never regret.