The time-consuming and complicated task of paying employees may be why you’ve decided to outsource your accounting and payroll function. No matter how tedious Payroll can be, it is a legal necessity if you are running a business. Done well, payroll prevents tying up crucial business resources and promotes staff morale because mistakes are fewer. Done badly and you could be audited with resultant fines.
Certainly, the government stimulus packages during the Covid outbreak has kept many businesses afloat but they put pressure onto individuals in accounting departments around the country who had to get their heads around Jobkeeper and its reporting requirements besides the usual day-to-day task of keeping accurate records and pay.
The payroll tasks have probably become more complicated since you started in your business. It may be time to assess whether this is something that could better be left to the experts.
Related: Why its time to Outsource your Payroll
Payroll made easy
Now, as businesses are assessing their profit-and-loss, cashflow and business structures, many are considering whether to outsource their payroll tasks to a professional accounting firm. There are many benefits in doing so.
Your prospective accountant will:
- know what kind of employment you offer (permanent, casual, part-time), whether your workers are employees or contractors and how to award the appropriate wages and entitlements to each of them
- know what type of wages payroll tax applies to (for example, super contributions, salary sacrificing and annual, long service and sick leave)
- what records need to be kept and in what format, and when to send them to the ATO
- what taxes you need to pay, and when
- how to calculate your superannuation obligations
- be alert to your OH&S and insurance requirements.
And remember, since July 2019, employers must report to the ATO using Single Touch Payroll (STP) software. This automatically tells the ATO about your employees payroll information – such as salaries and wages, pay as you go (PAYG) withholding and superannuation – each time you pay them. Your pay cycle doesn't need to change, meaning you can still continue to pay your employees weekly, fortnightly or monthly.
However, every time you make a pay run, you need to prepare your payroll payment register summary YTD report, along with your payroll entitlement balance summary and detail report. You will also need to send payslips to your employees with all their wage, tax and super information on it, either by email or post.
Why not let a professional accounting firm do this for you? It will leave you and your staff free to what you’re all best at in your business. With cloud accounting software, contact with your accountant could be easier than you imagine. A few clicks of a mouse and you can share your financial data, perhaps without even leaving your workspace.
Shine a light on your business
Payroll may be tiresome to do but it can prove to be a treasure field of useful information on the the health of your business. It can connect other areas of your business and give you insights into how you're performing.
Here are four ways that payroll helps your business.
- Uncover employee insights – this is where HR, finance and operations help you learn about your staff, how they work best and what benefits they need to thrive.
- Drive business performance – how do you create revenue, what drives sales, costs and cashflow?
- Fuel strategic thinking – changing staff work hours or roles could free up talent that leads to business growth.
- Keep you organised – well managed files and data will positively impact across other areas of the business.
If you are considering outsourcing your payroll, feel free to contact us. We are here to offer you a professional service that will free up your time and money. Our team of fully qualified accounting professionals use best practice accounting standards to integrate every aspect of the payroll process into your business, simplifying your payroll model, providing you with immediate reporting and ensuring compliance with regulatory bodies.
Have you noticed our #FridayExpertTips... here's one that relates to #Accounting
“There are a lot of rules and government requirements around Payroll. The more employees you have, the more complex your payroll usually becomes. Outsourcing your payroll to a professional service firm may give you peace of mind."