Every business is unique, depending on its size, goals, and requirements. Payroll is something every business needs to manage, and outsourcing payroll can be a great option.

It’s a common sight: internal payroll teams trying to comply with the financial year’s end, especially when the risk of non-compliance is high.

This is true for businesses of any size and in all industries. There is an immense amount of internal resources that are dedicated to payroll attention almost round-the-clock, all while juggling other business priorities.

Businesses don’t tend to attempt to solve their IT problems themselves anymore. IT helpdesks are now the norm. You have a business to run, so why waste your time trying to fix a complex server error message on the monitor? And risk losing all your data.

Businesses often outsource IT solutions. Why not transfer internal payroll to a payroll outsourcing company so that the business can concentrate on its core competencies?

Payroll Functions That Can Be Outsourced

Imagine how much time you could save and how much risk you would be able to take care of these functions by outsourcing payroll.

– Superannuation processing

– Payslips and reporting

– Time attendance and rostering

– Monthly regulatory lodgements

– End of financial Year Processing

– Interpretation of the Award

– Staying up to date on the most recent payroll changes and regulations, such as payroll tax

If a business has been managing their payroll internally since the beginning, it is easy to question the benefits of outsourcing payroll.

There are many benefits to outsourcing payroll for businesses that you should consider.

Direct and indirect financial losses are yours

1. The Cost of In-House Payroll Financing

You will pay more if you have your own payroll team than if you do your payroll in-house. This is a costly practice as you have to pay all wages and benefits associated with the team. Even if your company is small, it’s possible that the cost to hire this team will be much higher than using an outsourcing payroll service.

2. You must purchase and update expensive software / technology

Payroll Service software is expensive, that is something we can all agree on. If you decide to do your payroll in-house, make sure to update and purchase the most current software to meet all your payroll requirements. These programs may include software for “benefits management”, “time and attendance management” as well as automated sending of pay slips. Payroll outsourcing allows for a simple, periodic payment. It means that all of their payroll functions are covered in one payment.

3. The cost of training is not included

Your payroll team can be costly if you don’t provide effective training. You must ensure your payroll staff are up-to-date on all changes and regulations to ensure compliance. This training can be costly and time-consuming. Outsourced payroll allows you to have access to payroll professionals without the financial burden or worry of providing the most current training.

4. You could face serious penalties and charges

You run the risk of making a mistake and having to pay a penalty. You run the risk of omitting data, incorrectly classifying workers’ employee types, or making a late tax payment. These are just a few of the many mistakes that can result in severe penalties. You will not be exposed to this risk if you outsource your payroll.

5. It’s possible to overpay employees

You could be overpaying employees if there are significant differences in the time of your employees and their time records. This is the average amount that businesses overpay their employees. It is possible to outsource your payroll and keep better attendance records.

Are you unsure how much your company would spend on its payroll? To get a better idea, use an online calculator.

To ensure compliance, you don’t need industry experts

Payroll errors are common and easy to make. You may think that overtime is 1.5 times an employee’s hourly wage. However, this is not always true. Unintentional errors can put your business in serious trouble. Payroll professionals, on the other hand, offer peace of mind knowing that they are up-to-date with all the latest information, such as changes in payroll tax. Outsourcing payroll guarantees compliance.

Your security is at risk

The decision to run your own payroll in-office is a serious security risk for the entire company. Identity theft, misused profits, and interference with business records are just some of the potential risks. Your data must be kept secure in your office. This is a risk that you should take. Outsourcing also offers the benefit that your data protection will be taken care of by the payroll provider. This eliminates the need to protect your data in-office.

You are wasting valuable time

It is time-consuming to complete your own payroll. This takes time that could be used to invest in your business ventures. It is worth looking into any alternative that allows you to reclaim this valuable time. This is why outsourcing payroll can be so beneficial. It allows you to reclaim your time and not spend it on administrative tasks.

Your Payroll Knowledge May Leave

It is inevitable that your team members will leave your company one day. They will take their valuable payroll knowledge with them. It doesn’t matter how comprehensive a handover is, this process will continue as staff move on. An external team could handle your payroll, so you don’t have to worry about a knowledge gap.

It is difficult to ignore the benefits of outsourcing payroll functions to businesses. It’s an excellent idea for any business, regardless of size, whether it’s small, medium, or large who are looking for payroll services in Wilmington NC

How have you managed payroll internally, or sourced it?