It may be time to outsource your company payroll
With new technologies offering far more sophisticated solutions, outsourcing your payroll could potentially save your business time and money, while more importantly keeping business operations compliant. Management needs to move away from the misconception that managing your business payroll in-house provides more control and wider oversight. That may not be accurate as it does not seem to weigh up when compared to the pros of having this process outsourced. Chosen correctly, outsourced payroll services could offer a simpler, less expensive means of paying employees, filing mandatory submissions and covering a host of other payroll obligations. In addition, it could just help prevent many financially induced migraines!
There are various aspects that should be closely considered when considering to outsource a payroll:
Time spent recording and processing for each payroll run.
Payroll in essence is an incredibly detail orientated task. It tends to follow repetitive patterns but nevertheless cannot be done hastily. It thus consumes valuable time that could rather be used to give attention to strategies that could propel your business forward and free up resources to focus on more critical work aspects. Many businesses do not realise how much time and money they are expending on these manual human resource management tasks until they sit down and take stock of their time. This could be hindering profitability and reducing productivity, yet remain unnoticed.
The risk of non-compliance.
Staying ahead when it comes to tax laws and labour legislation requirements can become overwhelming as the laws, together with rules and regulations, are indeed ever changing.
By handing this task over to an experienced outsourced payroll administrator you reduce the risk of falling short or erroneously disclosing any vital information which could have detrimental consequences. This could place the entire business at risk and possibly under immense scrutiny by government officials if an audit or investigation is to be conducted. Penalties for errors, omissions or late filings can be rather costly to the business, an expense that can certainly be avoided if dealt with efficiently from the onset. These costs are so easily imposed by the authorities, so why should any business be left vulnerable in the first place?
Outsourced companies have trained specialists in the field, with all the relevant skills, expertise and acquired knowledge regarding payroll legislation and taxation laws, as well as experience dealing with the related government bodies and revenue service officials. These professionals will ensure your business is always on the right side of the law.
Maintaining security and confidentiality.
Payroll data is particularly sensitive information. The last thing any business owner would want is to deal with the risk of identity theft, embezzlement of funds or tampering with company files for personal gain. It is thus vital that the stringent controls and effective measures are in place to ensure immense confidentiality and discretion when handling this information.
Cyber-crime incidence has heightened over the years posing further threats to businesses across the board. However if your payroll is handled by a professional outsourced company, you can rest assured that all information is stored safely on secure data servers. These companies have invested in the latest cyber-security technologies, along with qualified personnel, to assist in implementing and maintaining the tight controls around their databases eliminating the possibility of client information being exposed or easily accessed, with added protection against data losses and corruption.
Accuracy – Every cent counts.
Emphasis needs to be placed on keeping up to date and clean payroll records and reconciliations. This plays a vital role when it comes to bi-annual and annual submissions relating to EMP501’s as well as monthly submissions and relevant disclosures. The slightest error can lead to everything spiraling out of control.
It should also be borne in mind that these calculations and disclosures produce the end result of what has to be paid to an employee. There shouldn’t be a cent over or under stated, as insignificant as it may seem.
Should you require any assistance in navigating through the payroll world or would like to find out more about the array of services offered, please contact our dynamic team.
Outsourced Accounting and Payroll Administrator, Johannesburg