Companies in Australia are looking forward to getting lean and mean by streamlining their business operations. The common question that most of today’s business leaders face is whether to manage the tasks in-house or to outsource the functions that lag in generating revenue or adding value to their core business. Though HR functions like payroll were traditionally handled in-house, an increased need for efficiency has led to companies relying on managed service providers to enjoy the benefits of outsourcing payroll.
Here, we provide you with the top 5 benefits of managed and outsourced payroll services:
- Keep Control. Quite a lot of business owners have this false assumption that outsourcing implies a loss of control. But in reality, you are still in control as the engagement is clearly defined in the contract with the third party. You have the choice to determine which functions you would want to outsource and if there are any functions you would like to keep performing in-house. It’s a flexible and scalable process. You can explain in detail what you expect from the third party and make sure that the expected tasks get done.
- Minimise compliance risks. There is no denying the fact that payroll and tax regulations in Australia are complex. Partnering with the right managed service providers, you gain access to expertise in government regulations, legislation, privacy and security so as to minimise risks. This information is shared in a safe and secure manner in order to ensure that your data is protected from the risk of payroll fraud or theft while maintaining complete compliance with regulations.
- Improved accuracy. When it comes to payroll, you need to get the numbers right or chances are that you will get in trouble with the internal revenue system and let your employees down. With the varying tax rates along with a lot of different timesheets, pay scales and a variety of benefits and coverage offered, it can be tricky to get everything right. With payroll outsourcing, it is ensured that your employees get paid on time. Chances of forgetting your employees’ overtime pay and getting their hours wrong are reduced as these services guarantee accuracy. By avoiding the risk of penalties, you will also not get in trouble with the government.
- Saves Time. When your HR team is not spending their valuable time on maintaining your payroll system, the time saved can be invested in more important aspects of your business. Instead of spending hours in manual data entry, double-checking the numbers and researching and updating the government laws and regulations, your HR professionals can focus on strategies to improve the efficiency and productivity of your company that will ensure customer satisfaction.
- Control Costs. Saving time implies saving money. By outsourcing payroll, these companies can save money that they will otherwise spend on expanding their in-house HR department. And with the HR department left with more time to concentrate on the activities that increase the company’s efficiency and productivity, your business will achieve its goals at the lowest rates possible.
Payroll processing needs to be properly managed in order to earn the trust of your employees and to ensure the smooth functioning of business operations. If you still have doubts regarding whether to trust a third party with your payroll management, get in touch with a payroll management company like Ramco for expert advice and guidance.