Managing your payroll is an essential, yet non-core function of your business – in other words, it doesn’t earn you money!
While many companies resist paying a contractor to perform non-revenue generating roles, perhaps it’s time to re-think the logistics… perhaps it’s time to outsource.
After all, outsourcing lets you:
- Focus on your core, revenue generating business,
- Access the latest software, (especially important following the ATO’s introduction of Single Touch Payroll (STP) etc), and
- Reduce your risks of legislative non-compliance.
Let’s Look at the Issues
Taxes, wages, fringe benefits, superannuation, holiday pay, bonuses, hourly rates – they’re highly technical, they differ across states and territories, and they’re constantly being reviewed and amended, making it a full-time job to keep on touch of the latest legislation.
As well as managing your regular paid workforce, there’s the need to manage pay for contractors, complete paperwork for an
There are two options:
- Invest in a good payroll system – and there are plenty out there – or
- Outsource to a payroll manager
A good payroll system will accurately record logged hours, holidays, sick leave and more. It will instantly calculate wages, superannuation and taxes payable accordingly, generate reports and complete transactions – all at the push of a button.
The detailed analysis that’s instantly available can be used to monitor business, identify opportunities for change and growth, and minimise administrative requirements at tax time.
Importantly, a good payroll system is absolutely secure to protect your company’s financial information and the identities and financial specifics of your staff and management.
Of course, you’ll still need to make the initial investment, train up a staff member to manage it and constantly upgrade the system.
Outsourcing a professional service provider will ensure all the above payroll management and compliance is taken care of quickly, efficiently and with the greatest expertise.
What to look for
When considering the services of a payroll manager it’s important to check that they’re reliable and flexible to meet your needs as your business grows:
- Does the company understand your industry?
- Does it have additional services you can draw on, such as accounting, leasing / financing, and migration/onboarding services that may be useful?
- Has the company invested in state of the art software and will it be compatible with the software your accountant uses?
- Does it have the resources and commitment to keep up to speed with changing legislation?
- Does it have sufficient security in place to manage your data – what back up does it use and what protocols are in place in the event of a data breach?
- Does the company have a long history and a good reputation in the industry?
- Can you absolutely trust the company to fulfil your compliance obligations – in the end, the responsibility will fall back on your shoulders.
No doubt outsourcing a service provider requires trust – yet do your homework well and you’re guaranteed to be better off than you would have
For peace of mind and opportunity to grow your business, contact an Ayers expert today.