Handing Over Your Payroll – How to Prepare for Outsourcing
Payroll is a crucial task for your business. Paying employees the correct amount on time embeds their trust in your company, allowing them to focus on growing the business and not worrying if they’ll receive their pay before bills are due. As important as this task is, it is unnecessarily inefficient – which is why more Australian businesses are outsourcing their payroll requirements to external payroll specialists.
This can be a daunting task for business owners and managers. Can they integrate our current system? Which companies offer this service? Where do I start? These are all questions that cause managers to delay moving to a payroll system – they know it will improve their business but aren’t sure where to begin. To make it clear for you, here is a step-by-step guide to move from your current payroll system to an external payroll specialist.
Steps you need to take to hand over your payroll to an outsourced payroll service:
Step 1: Review your current payroll process
Assess your current payroll processes and the resource drain it currently has on your company. As you review your system, identify your strengths and weaknesses which will help determine what you need from an outsourced payroll service.
Step 2: Define your needs
Having reviewed your current payroll process you can then note the improvements that it needs. Does it need to be faster? More efficient? Accessible to employees? These needs create your criteria for a payroll service.
Step 3: Search your local market
Create a list of the outsourced payroll providers available to your business. It’s important they’re based within Australia and New Zealand as they need a deep understanding of the tax laws and how they will apply to your business. You can then match which providers match your criteria identified in step two.
Step 4: Meet with your preferred payroll providers
Once you’ve determined the payroll specialists that meet your requirements you should set up a face-to-face meeting. Your purpose in this meeting is to determine the following information:
- Their track record
- Geographic suitability to your company
- Financial stability of the company
- Compatibility with your business systems
- Quality of service they can provide
- Time taken to implement the payroll system
Step 5: Select your preferred provider
After you meet with your preferred providers identify the one that best fits your unique business, meets your criteria and scale up as your business grows.
Step 6: Service level agreement
Before implementing your new payroll system, ensure that the company you have chosen will provide the service that you require. Your contract should cover:
- Respective responsibilities of your company and your payroll service
- Accountability in the case of errors
- A clear process to resolve disputes
- Access to support
Step 7: Implement your new outsourced payroll system
When you are satisfied with your agreement with your payroll service provider, you can let them implement the new system. If there are any changes to your employees, you should update them with the changes and how it will affect them.
Are you looking for an outsourced payroll provider?
i3Group offers a fully managed end-to-end payroll service and is designed to meet your specific business and its needs. We have extensive experience with the local tax system and requirements, have never lost a client to a competitor, and provide a fully customised solution.