If you have staff in your business then you would be no stranger to the head ache that managing payroll can present. Time is money and as a business owner your time is precious and finite, and probably best spent on high value tasks that are aimed at growing your business.
So here are our top 5 reasons you should consider outsourcing your payroll:
1. Save overheads
Outsourcing to a specialist company can ensure that you are being efficient. By using a qualified team you only pay for what you use, and this can reduce your own back office costs by paying people in house to do payroll for you. This also allows you to scale up or down based on your requirements, which is much more difficult when you are handling this in house.
2. Stay Compliant
Are you up to date with the ever changing tax laws, codes and requirements? This can be a full time job in itself. If you get it wrong not only will you have disgruntled employees but you may need to find extra money to pay back money or taxes owed. If you do something wrong you can also find yourself in hot water with the ATO and this may even result in a fine. Not only is this stressful and costly to the business but it can result in loss of productivity and business function.
3. Business continuity and disaster recovery
If there is a problem with your systems or building and you need to cease operations or have temporarily lost connection to your data and computer then this can affect payroll. Your employees are relying on their pay and this can leave people in a compromising position. Therefore having an outsourced solution can ensure that payroll can continue to run smoothly even if you have a disruption to services.
4. Extensive reporting
An outsource provider will supply you with regular and detailed reporting. This is something that you may not be comfortable or able to complete or prepare yourself. This type of reporting can be important insight into your business operations and can provide real value to your management decisions. Many will also provide insights and recommendations for action and improvement along with the reporting.
5. Single Touch Payroll
Single Touch Payroll starts from 1 July 2018 – if you have 20 or more employees, we recommend the next steps to get ready. Have a look at our checklist of steps to be Single Touch Payroll ready.
Azure Group is working closely with payroll solution and service providers. We regularly publish information and updates on our website and through our newsletters.
If you are considering outsourcing your payroll to an external provider we recommend talking to one of our tax specialists to determine the best processes and recommendations for service providers.
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