Are you thinking of using one of the many payroll services Australia is offering, but not too sure whether it will suit your needs or not? Here’s what you need to know.
Why would I use a payroll service?
The short answer is ‘money’. As a small business, you always need to make sure that every cent of money is used in a practical manner, and many businesses find that payroll services save them cash. There’s a lot of grass root level admin involved in running a business, most of it having very little to do with the core values and income-generating streams of the business. Not everyone has the expertise to negotiate this themselves. Couple that with the time needed, and you probably know you need help.
How much will a payroll outsourcing service cost me?
Of course, we are always free to then hire a staff member to help with this issue. But that entails paying a full time salary in a business that likely will not need full-time work on this aspect. Hiring a payroll service will often significantly cut the overheads needed to still ensure that your finances are correctly handled.
How much does your time cost?
Of course, things aren’t only about cost. In theory, you could keep it even cheaper by only working on your payroll yourself, personally. Maybe you even have the expertise in financial fields that would be required. However, this is an intensely time consuming activity, and one it is vital not to rush. If you are outsourcing to a payroll service, however, you will have access to people with all the time and expertise needed to work on your issues, without the need to take time away from your core business.
How well do you know the rules?
Keeping within the many varied tax rules at both state and national level can be difficult. This tax law changes all the time, and infringements may earn you an incredibly hefty penalty. Payroll services are paid- literally- to keep on top of these tax changes and ensure full and up-to-date compliance at all times.
Can you maintain confidentiality?
As a small business, it can be tempting to keep things a little more lax then larger firms that can spend a ton on features designed to maintain confidentiality. Salary is a very private matter between employer and employee, and you should be taking steps to ensure there is no possibility of a breach. Payroll services, by the nature of their business, have these safeguards in place.
Can you keep your staff forever?
Continuity in recording processes is always a problem in the face of staff turnover. One person does well- the next changes the filing system- the third has no clue how to handle the data, and the end result is chaos and poor record keeping. A payroll service will have systems in place to ensure data is regular and per their processes. More details here: https://smallbiztrends.com/2014/11/outsourcing-payroll-tips.html
For most small businesses in Australia, payroll outsourcing is the way to go to ensure a smooth payroll process.