Payroll-Outsourcing

Payroll is both your biggest expense and your most important liability. This is why most firms consider payroll outsourcing as their first line of defence. There are several ways this simply makes sense- and one of the biggest is ensuring that simple yet disastrous payroll mistakes don’t get made. Here are some of the most common payroll issues, mistakes and mess ups out there.

Why is payroll so important?

Do you like to be paid for your work? So do your staff! Most people will not continue to work for a firm that pays tardily or that makes constant mistakes in running payments. Remember that payroll is a lot more complex then it may appear on the surface, too. Remember there are garnishing orders, leave payments, alimony and child support and a host of other deductions and additions to salaries that need to be processed.

You may have people working on commissions, or people who are due extra subsidies for cars, phones and more. There’s also the complex fields of ensuring you pay over tax on time and correctly for each employee. All in all, it’s a complex arena and one it’s vital to get right if you want to keep your staff happy and revenue services off your back.

How would payroll outsourcing help?

Most large companies can sustain a dedicated accounting department, but smaller firms may struggle to justify the additional salary costs [plus benefits] of a new employee. However, as we’ve pointed out above, payroll is an immensely complex field and one it’s critical to get right, and it’s not the sort of job that should, or even can, be done as a secondary task to someone else’s job. Plus, it’s vital that you keep a check on potential payroll fraud and that your reporting is handled in line with legislation. For smaller firms, it’s far simpler to opt for the monthly fixed cost of using a payroll outsourcing company then struggling through the process themselves.

What are common payroll mistakes?

Another great reason to use a payroll service in Australia is the avoidance of common mistakes. As trained professionals who are specialists in this particular area, your pay

Roll outsourcing firm will not be prone to making such silly, yet all too common, mistakes.

Firstly, most firms forget to account for the effects of weekends and holidays on the payroll. The payroll will need to run a day early if there’s a public holiday on the cards. You also need to verify that your payroll dates- pay period and check or direct debit date- are correct each and every month.

Mistakes in this arena will create inconsistencies on audit and affect your standing with the tax department. This is extra important for shift staff. You should always double check the contents of your payroll for verification purposes for ensure errors are not being approved.

Likewise, checking for accurate tax compliance is essential, and one of the number one mistakes made by people who do not use payroll services. Checks that are written but not recorded on the system are one of the easiest ways to commit payroll fraud, let alone mistakes.

Overall, a good payroll outsourcing service in Australia cuts down on payroll mistakes and fraud.

Related Post