Payroll Outsourcing is a service offered by an external entity that provides legal, tax, and accounting support to companies to ensure that employees receive their payslips in a timely and accurate manner with minimal risk.
Current statistics have shown that over 40% of small to medium-sized companies are outsourcing their Payroll to a Bureau or Payroll processing specialist. The constant change in regulatory requirements and taxation is making the payroll environment extremely difficult to stay on top of things and in turn difficult to manage.
When it comes to payroll, there is a lot of things to think about. Some of the matters that come to mind are, software maintenance, changes in legislation, how often do you pay your employees and preparing for the next payday, incentives allowances, and reimbursements and how are each taxed, the administration of Loans Savings and Garnishee Orders, Tax Directives how and when should you apply for one, the processing of various submissions and returns on statutory bodies such as Efling, E@syfile & UFiling.
By outsourcing your payroll services to the experts, not only will this give you the peace of mind that your compliance is taken care of, but also ensures that you can focus on what is important to your business.
What are the benefits of payroll outsourcing
Free Up Your Time and Resources
Depending on the size of your company and how frequently you pay your employees, there’s a good chance you’re spending hours each week doing payroll on your own. Even a few hours a week can add up big time in the grand scheme of things. Think about what you could be doing with that time if it wasn’t spent on the payroll; you could be working on more important projects or taking steps to grow your business.
Keep Your Employees Happy (And Paid)
Few things are more important than the satisfaction of your hard-working employees. Unfortunately, nothing makes an employee more disgruntled than a late or short payslip. When your payroll is taken care of by a specialist to process and issue all your employees’ payslips, you can enjoy optimal accuracy and reduce the risk of the payslip being issued late or being inaccurate. This, in turn, helps to keep your employees happy while giving you some added peace of mind.
Saving you Money
Outsourcing your payroll may sound like an additional expense, but it will save your business considerable amounts of money. Fully managed payroll services are specifically designed to optimise the payroll management process by freeing human capital services and allowing you to focus and engage more in projects, that add value to the business.
Payroll management services are knowledgeable on the various legalities surrounding payroll management to a degree that most businesses can’t match. This is because outsourced payroll management services are dedicated to this one field – whereas your business’ HR department has countless other priorities. However, failing to abide by the legal requirements of payroll management can result in significant penalties being placed upon your business
Avoid Expensive Mistakes
Payroll mistakes can cost your company big time. By outsourcing your payroll, you will enjoy surety that your books are as accurate as possible, and your risk of expensive mistakes is reduced. An experienced payroll specialist will use all the latest and most trusted tools/software to ensure accurate bookkeeping for your protection and peace of mind.
Team of Experts always available
Payroll outsourcing also ensures that there is always a team of trained professionals available to manage your payroll. You are effectively hiring a team of experts that will work around to clock, to ensure your payroll is processed accurately and on time.
Reporting taken care of.
Outsourcing companies will take care of any reporting issues. Not just reporting to you, but also to any other external body that does require a monthly return. These will include reports such as EMP201, EMP501, W As 8, EEA2, EEA 4 to name a few.
A good payroll outsourcing provider has the best-in-class technology to help companies scale. Technology provides increased functionality and delivers benefits for the employer and the employees. A good technology provider such as GreatSoft Payroll also provides data backup and disaster recovery, which can mitigate potential risks. Additional features that can be provided via a good technology provider as to all payroll service providers can also extend their services to allow your employees access 24/7 to information such as their payslip information, leave and leave balances, any HR-related documents, Employee self-service options, etc.