Payroll is one of the most crucial parts of any business. Without a good payroll system, you’ll be left with unhappy staff, confusing situations and potentially be counting the financial cost as well.
Often the mistake many business owners or managers make is thinking that payroll is a job that “anyone can do”. There’s often a belief amongst owners and managers, and even staff themselves, that payroll is completed by the simple click of a button.
One click, it’s done, everyone’s been paid.
Unfortunately, it’s not that simple. There is no ‘magic payroll button’ and the work and effort that goes into a successful pay run is more detailed than anyone probably thinks.
Let’s not forget that payroll, particularly at larger companies, has a huge number of variables attached. These variables include applying sick leave, annual leave, adding new employees, removing old employees, dealing with commissions and making sure the right checks and balances are adhered to.
The time between starting the payroll process and the money landing in an employee’s bank is very stressful for anyone payroll manager. There will always be problems – someone was underpaid, someone was overpaid, someone didn’t get paid at all – and it is up to the person in charge of payroll to deal with these issues.
That person is also generally relying on other people to provide accurate information such as time sheets, annual leave approvals and sick leave approvals.
Policies and procedures also come into place – does the workplace allow employees to cash out annual leave? Are there casual employees were hours change constantly?
And of course, it’s also up to payroll managers to work out the taxation side of payroll. How much tax should be withheld, are there any allowances that are exempt from tax and what is the company’s overall taxation liability?
In truth, the magic payroll button is actually a complex list of procedures and requirements that payroll managers and processers have to work through.
Fortunately, there’s a variety of software programs out there that can assist people handling payroll.
This does make life easier, but it doesn’t solve all of the problems. Businesses still need a competent, trained employee to handle payroll and deal with issues that arise.
The next time you think payroll is an easy and simple process, think again – it’s anything but!
By consulting with i3Group we can help you understand the benefits of outsourcing your payroll to experienced professionals. Call us today to speak to one of our team on 1300 725 647.