Businesses today have more options than ever for handling payroll.
DIY-minded business owners may juggle payroll along with their other responsibilities, or delegate payroll to an employee. Other businesses try to avoid the hassle by hiring an outside firm.
We are going to take a look at the benefits of outsourcing your payroll to help you make a clear and concise decision.
Outsourcing payroll can result in many benefits including;
1. Free up time to focus on other things
Outsourcing your business’ payroll will allow you to free up time and focus on other important aspects of the business. Payroll can be a time consuming and monotonous task, that eats into your productivity.
2. Reduce Costs
An average business with 10 employees, can spend thousands of dollars each year on direct labour costs to perform payroll tasks. A professional provider will actually work out cheaper than if you were to hire a part time bookkeeper.
3. Utilise Expertise From Outside
With regular changes to legal forms, legislation and withholding rates, it can be hard for a business to keep on top of their up-to-date requirements. An outsourced payroll company know the industry inside out and are able to keep on top of all the changes. Use of fast and accurate software, and expertise can reduce time spent on your payroll.
4. Avoid ATO Penalties
If you choose to do payroll in-house, any errors you may make can result in penalties from the Australian Tax Office (ATO). Outsourcing to a professional firm will ensure accurate reporting and no costly fines from the ATO.
5. Eliminate Technology Problems
An outsourced company will ensure the payroll software used is the latest version, and will have the most recent tax tables installed on their computers. Doing it yourself without the latest technologies can mean errors arise, and expose your business to penalties from the ATO.
6. Avoid Payroll Knowledge Leaving You
Having one person in your company doing your payroll can be a big risk. If they get a new job, all their payroll knowledge walks out the door with them. Using an outside company means you eliminate the worry of losing your valuable asset.
Payroll outsourcing isn’t right for every small business, but it’s a boon to many.
Make the decision that’s right for you by taking advantage of the knowledge and expertise that we at i3 Group are able to offer by giving us a call today on 1300 725 647.