Why Your Business Should Outsource Payroll As Soon As You Hire New Workers
When you start hiring employees, you must either sort out their wages yourself or hire a payroll service. While outsourcing this seemingly simple task may seem like another unnecessary expense – especially when your overheads are increasing – it could be well worth the investment. Here are five reasons why.
Accountants Know the Law Inside Out
If you aren't particularly well-versed in payroll tax laws, you are placing yourself and your business at risk. Failure to comply could result in criminal charges and substantial penalties. Most payroll accountants will take on the responsibility of errors on your behalf, leaving them liable for damages if your reporting is incorrect. If you're lucky, your payroll accountant may even find ways to target tax exceptions or reduce costs that you're unaware of.
State and territory laws can differ; therefore, using a local payroll accountant is highly recommended. For more information, contact the Australian Taxation Office.
You Can Focus on Your Core Business
Payroll processing is an incredibly time-consuming process, especially when you're still trying to understand how it all works. Outsourcing payroll is an expense; however, the time you'll save could be used for more revenue-generating activities, which could yield far greater results.
Your Employees Will Have More Faith in You
Your employees keep your business moving in the right direction. Without them, everything could fall apart in a heartbeat. Keeping your employees happy is paramount. Remember, they work for their keep and expect to be paid accurately and on time. Hiring a payroll service will ensure you don't suffer the consequences of poor morale and performance due to incorrect wage payments.
You Will Avoid Complications with Leave
When a staff member is sick or goes on holiday, processing payroll can quickly become a logistical nightmare that could render your entire system off balance. When your payroll coordinator is on leave, this problem is increased tenfold! When you outsource payroll, as long as you provide your accountant with the correct information, this isn't a problem.
Most Accountants Provide Flexible Packages
Most payroll accountants will adapt to suit the size of your business. This ensures you don't pay for services and features that you don't need. Many will also provide reporting software free-of-charge.
Fundamentally, outsourcing payroll will give you peace of mind. By knowing your payroll obligations are correct, efficient and lawful, you can simply forget about the entire process and focus on what really matters: running your business.