Why do companies outsource payroll?
As a business owner, you have a lot on your plate. From managing your finances to keeping up with regulations, there are many tasks that need to be done in order to keep your business running smoothly. One of these tasks is payroll, and many companies choose to outsource this function to a third-party provider. But why do companies outsource payroll and what are the benefits?
Employee Onboarding
This includes completing new hire paperwork, setting up employee accounts in the payroll system, collecting necessary information such as tax file numbers and bank details and submitting employee tax declarations to ATO.
Payroll Processing
This includes calculating and processing employee pay, including regular and overtime pay, allowances, and deductions.
Tax compliance
This includes withholding and remitting the appropriate amounts of income tax, superannuation, and other deductions to the ATO, as well as ensuring compliance with other tax laws and regulations including Single Touch Payroll (STP) obligations
Superannuation Compliance
This includes calculating and paying the correct amount of superannuation contributions for each employee and remitting these payments to the appropriate super fund on time. Every employer is required to use the SuperStream process for their employees’ Super contribution.
Payroll Reporting
This includes providing payslips and preparing reports for the business owner and for compliance with the ATO, such as payment summaries and other year-end reporting requirements
Leave Management
This includes tracking employee leave balances, processing leave requests, and ensuring compliance with leave laws and regulations
Termination Process
This includes processing final pay, calculating severance payments if applicable, ensuring compliance with termination laws and regulations, and providing termination paperwork.
Keeping up with laws and regulation
We keep you up to date with any payroll and tax laws changes and any industry-specific laws that may affect your business
Faq
What are the benefits of payroll outsourcing?
Some benefits of payroll outsourcing include:
- Cost savings: Outsourcing payroll can reduce the costs associated with maintaining an in-house payroll department.
- Improved efficiency: Payroll service providers have the specialized knowledge and expertise to handle payroll processes quickly and efficiently.
- Reduced compliance risk: Payroll service providers are responsible for staying up-to-date with the latest payroll laws and regulations, helping to reduce compliance risks for the organization.
- Scalability: Payroll outsourcing services can be scaled up or down depending on the needs of the organization, providing flexibility to the organization.
- Access to specialized tools and software: Payroll service providers often have access to specialized tools and software that can streamline and automate the payroll process.
What services do payroll outsourcing providers typically offer?
Payroll outsourcing providers typically offer a wide range of services, including:
- Payroll processing and calculation
- Tax filing and compliance
- Employee self-service portals
- Direct deposit and check printing
- Time and attendance tracking
- Reporting and analytics
Human resources and benefits administration
How do I choose the right payroll outsourcing provider for my organization?
To choose the right payroll outsourcing provider for your organization, you should consider the following factors:
- The provider’s experience and expertise in your industry
- The provider’s compliance and security measures
- The provider’s technology and software capabilities
- The provider’s customer service and support
The provider’s pricing and contract terms
What are the risks of payroll outsourcing?
Some risks of payroll outsourcing include:
- Loss of control over payroll processes
- Privacy and security risks
- Dependence on the payroll service provider
- Difficulty in switching providers
Q: Can I get help with payroll outsourcing?
A: Yes, you can get help with payroll outsourcing from payroll service providers, consultants, and other experts like Amaze Accounting. We can assist you in defining standard processes in your Payroll and a smooth transition to our outsourced payroll system “Payroll As A Service”
