If you’re considering payroll outsourcing, you may have noticed exactly how many payroll services there are in Australia at present. It’s difficult to know which you need, or if it’s even the right solution for your needs to start with. As with everything in life, there are advantages and disadvantages to payroll services, so we’re going to look at them in a little more detail below.
What are the advantages of payroll outsourcing?
There are many advantages to using a payroll service in Australia, especially as a small business. The most immediately noticeable is the saving in time. You or your staff are no longer stuck trying to cram payroll hand processing into an already busy schedule. It can also work out a considerable saving in cost. Microsoft may be able to justify the costs of a dedicated payroll department, but even one dedicated financial practitioner on the payroll can be too much for small business. And they probably aren’t needed the proverbial 24/7, 365…the work peaks and wanes through the month. An outsourced department is among the best ways to cut down on costs without sacrificing quality.
Payroll outsourcing also typically saves small business from the host of missed advantages and tax penalties that accrue to the small business owner otherwise. Payroll services keep their practitioners up to date and at the top of the legislation game- something small business owners don’t have the time to invest in. Likewise, they have intimate knowledge of all the relevant deadlines and dates- things easily missed by the less knowledgeable.
So what are the disadvantages of a payroll service?
Of course, nothing is perfect, and the payroll outsourcing process is no exception. There are also disadvantages to an outsourced payroll. The most significant of these is, of course, loss of data security. Medical and payroll records should be strictly confidential. Of course, most reputable service providers take the utmost in steps to protect confidential information, but there is always the fain risk of rouge staff or choosing the wrong service provider.
You also lose control of your payroll process a little. This is why it is critical to look for a payroll service which keeps you regularly updated. Data may be less easy to access [not stored on your own PCs] and more difficult to update. There’s also a risk of inconsistency within the work if your account regularly gets handed to different individuals who process things differently- again, your choice of payroll service will influence this considerable
Lastly, be aware the industry is not immune to upsell, just like any other service. It is very possible to get stuck paying for payroll outsourcing packages that have way more ‘services’ included then you will ever take advantage of. Some carefulness in the selection process will be of assistance in avoiding this.
Most payroll outsourcing services are reputable and hardworking, and a little care and attention when you choose your practitioner will make most of the payroll service risks very minimal.
Check out this link for more informations: https://smallbiztrends.com/2014/11/outsourcing-payroll-tips.htmlRead More