Guide to Outsourcing your Payroll

Nowadays, offices ranging from startups to big corporations have many employees working for varying hours and have a significant turnover rate. Gone are the days of small, family sized offices that are organized and well-staffed to perfection. The new era of corporate structure calls for a large number of staff with different positions, flexible work hours and extensive division of labor. This makes internal payroll processing increasingly difficult for corporate firms, as their payroll undergoes changes on a weekly basis. Fear not, because great payroll services like offer value for money services, such as preparation of timesheets, pay slips, payment of salaries and superannuation.

Outsourcing your Payroll

The Benefits

According to Entrepreneur offices often choose to prepare payrolls internally due to the following reasons-

  1. In house processing is considered more cost effective than outsourcing
  2. Maintaining secrecy of wage information
  3. Maintaining control over payrolls in case of last minute modifications

Yet, outsourcing your payroll versus having in house paychecks made has various benefits. For one, it relieves you of one of your major headaches, that is, the preparation of a payroll, which is a complex and time consuming job. Payroll outsourcing also contributes to an increase of overall office productivity, as it buys your office more time to do more important, income generating things. It reduces the chance of tampering your payroll by an inside staff. Having trust in your office is essential, but that does not mean that one should take the risk of tampering such sensitive information.

When a firm is lacking in knowledge about the proper payroll procedures and does not have access to a systematic payroll program, there is every possibility of a mistake in calculations, procedure and format. This can ultimately create huge discrepancies in your office funds, which will leave you scratching your heads at the end of the month. For all this, good firms can be your place to go!

Another major benefit of outsourcing your payroll is that it eases up your taxes. Every year, due to payroll mistakes, total tax penalties have reached millions of dollars, according to the Internal Service Revenue. With the ever changing and unpredictable nature of tax regulations, it is easy to make mistakes that can grossly affect your overall profits. It is better to be safe than sorry, hence, outsource your payroll without a doubt in mind!

The Cost

The payroll market is very competitive due to high demand in big corporations. The basic services, which include the preparation of payroll, pay slips, and timesheets, cost between $0.80 and $2.00 per paycheck plus a basic account fee. There are firms that charge just 2.99 Australian dollars.

The amount of the base fee is dependent on the time period; less frequent payroll periods cost more. However, these less frequent payroll periods become lower costs to maintain over the year. Additional services, like tax filing and direct deposits, cost between $4 and $9 per payroll period. There is often a nominal transaction change per check with direct deposit.