Seven reasons to outsource payroll services

Is it really possible that some companies are hesitant to employ the staff needed to grow their business because they think they will need to manage complicated payroll systems?
It is certainly true that regardless of the size of a business, the increasing complexity of payroll systems – managing wages, taxation, annual leave, PAYG, different state jurisdictions and superannuation – means that specialist knowledge is required for these functions to be carried out properly.

Medium to large businesses have for many years understood the benefits of using specialist payroll companies to manage their payroll requirements. What is becoming evident, however, is the growing need for small business payroll services as well.

Those businesses, whether large companies or SMEs, that have taken the step to outsource payroll services, have based their decision on these realisations, and have not looked back:

1. Australian payroll differs from many other countries in that regulations and requirements can change between states. If you have a national workforce, in-house payroll management can be extremely time-consuming.

2. While there are some impressive payroll software solutions available, by outsourcing payroll functions, the need to rely on a dedicated staff member to perform payroll services is eliminated. There is no interruption to the payroll function when staff members are on leave.

3. They see outsourcing payroll functions as part of their risk management plan, because the provider ensures that the client meets all requirements for governance and compliance.

4. Professional payroll companies are able to clearly define the separation of duties, providing transparency and an audit trail if needed.

5. There is no need for them to update systems and software and retrain staff if and when laws and regulations change.

6. Payroll companies are able to quickly adjust to meet the evolving demands of a business. Whether these changes are integration, downsizing, physical and geographical expansion a quality payroll services will have the flexibility to match these needs.

7. Quality payroll services provide their clients’ with online access to leave application and expenses processing, further eliminating the need for ancillary staff to manage these functions.

Successful businesses recognise that ability to do away with internal payroll systems has a measurable cost/benefit ratio. However, the peace of mind that results from knowing that this important function is being managed professionally is immeasurable!

Source: http://www.payrollnews.com.au/AnnouncementRetrieve.aspx?ID=38171