Payroll can be time consuming, messy and stressful, especially when you have several employees. Even with new accounting programs and technology it can still be a timely task. Outsourcing your payroll to a specialist can take the pressure off and allow you more time to spend on building your business.
What is payroll outsourcing? Like most jobs you don’t want to do, or can’t do, there are specialists who will take payroll off your hands. Payroll providers can do everything from calculating pay and deductions to transferring money into your employee’s account and filing associated taxes. Or they might just do part of the job, depending on what you need and what you can afford.
Why outsource payroll? Running payroll can be complicated and time-consuming. Plus there are a lot of legal requirements, which means there are serious risks to getting things wrong. For these reasons, many business owners prefer to leave it to the experts. It gives them more time, and extra peace of mind.
What do payroll providers do? Payroll providers may offer different levels of service which you can choose depending on what you need. But they’re generally all capable of:
working out pay (including benefits and reimbursements)
deducting employee income taxes and, if applicable, payroll taxes
making any other deductions, such as additional superannuation contributions
filing taxes with the ATO
making payments to employees
keeping payroll records
There are two broad levels of payroll service.
1. Full-service A payroll provider that offers full-service manages your payroll from start to finish – all you have to do is supply them with your business and employee data. They look after everything else. Full-service payroll is generally easier but, as you’d expect, it costs more. You also need good systems in place for sharing information. They need timely access to timesheets (for hourly workers), and notice of changes to a worker’s employment terms or tax status.
2. Part-service A payroll provider that offers part-service will manage the toughest parts of payroll, while leaving basic admin to you. For example, you might record time and attendance, and keep employee records. But they’ll calculate all the pay, taxes and other deductions. And they’ll set you up with software that makes your tasks straightforward.
How to choose a good payroll service provider Payroll is a critical part of your business. You’ll want to get it right and opt for a provider that meets your needs. Here’s what to consider when choosing a payroll provider:
Automate the easy stuff Be sure your provider is using software to automate the easy stuff so you’re not paying professional fees for basic admin jobs.
Check employee details regularly Ask what processes they have for checking and updating employee information. A change in an employee’s details may affect deductions and legal requirements, so providers must be vigilant about updating them.
Secure your data How does your provider handle the privacy and security of your business and employee data? Ask them what safeguards are in place to ensure your data is secure.
Work with what you have Check out what your accounting software can do. You may already have the means to automate payroll – maybe you just need help from a BAS Agent who’s familiar with the software you have.
Work with who you know Anytime Assist Bookkeeping is a payroll provider. We offer full or part-service payroll processing at a competitive price.
Outsource payroll the right way With payroll outsourcing, it often comes down to what’s most efficient and cost-effective for your business. If you get the right provider, you’ll spend less time thinking about payroll and more time doing what you do best – running and growing your business.
For more information call Jess at Anytime Assist Bookkeeping on 0431604609.