There are often times when running a business that you wish you could just outsource some of the departments and be done with it.
But often what you find is that as much as you would like to handball less desirable activities of your business to other people, this does cost money. One such part of the business that most owners consider outsourcing is their payroll and HR functions. The legal requirements and tax legislations is enough to put some to sleep and others reaching out for the proverbial gun.
Business owners surveyed have explained that these functions are not high yielding in terms of bringing in sales revenue and profits and they would much prefer to spend their time concentrating on business activities that will make money. Unfortunately, payroll functions are still a primary part of any business and although annoying, still needs to be done.
Just as we outsource the completion of our personal or business tax return to a qualified (and sometimes creative) accountant, the payroll process should be viewed in the same light. So if you are finding that you are inundated with having to keep up with timesheets, record keeping, tax deductions and a host of superannuation requirements, you’re probably at the right time to start looking at outsourcing this component of your business.
There are a set of 5 things to consider before outsourcing your payroll. These are:
1. How complex is your payroll?
Consider the length of time it takes to complete payroll and whether it is something you can easily outsource. If you have one employee in your business and you are happy to complete this task, perhaps you wouldn’t outsource. But if you have multiple employees than perhaps it is a good idea. Other things to consider are: what type of employment contracts are your employees on? For example, contract workers, part time workers, casual workers and salaried staff. Are there any special tax requirements to consider? What about industry award wages?
2. What are your expectations from a third party vendor?
If there is a concern or payroll issue that arises, the process in which it is handled may also be of importance to you. So some considerations may be: what kind of customer service do you expect to get from an outsourced payroll provider? What is the response time when a problem arises and is logged with the vendor? Do you want a company who just works behind the scenes to get the task done? Do you prefer to have access to an account manager whenever you want? Or are you happy with a ticketing system and get in line?
3. How do they price for their services?
It is important to determine how you will be charged for the work that an outsourced payroll provider performs for your business. Do they charge a fee for each pay processed? Do they tailor their services and prices dependent on the work performed? Or do they just offer packaged deals?
4. How reputable is your vendor?
If you are going to outsource your HR and payroll functionality, it is important to engage the services of a vendor who has a solid reputation for service excellence and performance. Because payroll is a highly sensitive matter, in terms of privacy and confidentiality, you will need to turn to a provider who treats security with the utmost importance and who acts honestly and ethically. Ask yourself: what experience does this vendor come with? How long have they been providing an outsourced payroll service? What is their performance and how do they measure their business success?
5. Do you need an integrated service?
Many payroll processing companies now offer integrated web solutions so that employees can access their pay slips virtually, submit online payroll timesheets, update personal information, request leave and other such things. Consider whether you enjoy the convenience of a paperless environment or whether you prefer to do things the old fashioned way – by paper timesheets and pay packets!
If you’re looking for an outsourced payroll company in Melbourne that offers fast, accurate and professional service, contact i3Group now on 1300 725 647.