Outsourcing your payroll involves working with a third-party provider to streamline your payroll tasks and process. Outsourced payroll providers leverage expertise and technology to help you complete these tasks quickly and accurately.
You don’t have to manually work out the calculations or handle the administrative activities yourself. Outsourcing simplifies the process to reduce the stress associated with payroll tasks.
To decide whether payroll outsourcing is right for you, let’s dive deeper into the benefits of using outsourced payroll providers in your business.
Top 6 Advantages of Using Outsourced Payroll Providers
Using outsourced payroll providers in your business has dozens of benefits. But here are the top six.
1. It Can Save Time and Boost Productivity in Your Business
Regardless of the number of employees in a business, payroll tasks can consume a great deal of time. For example, you must accurately track employees’ benefits, deduct applicable taxes, and send payslips to employees. Considering that you have other business activities, these tasks can be tiresome and time-consuming.
However, outsourcing payroll processes to a reliable third-party provider leaves you with less work. As a result, you get extra time to focus on strategic tasks that take your business to the next level. For instance, the time and effort you’re using right now in payroll procedures can be re-channelled to streamline customer service and improve your business’ online presence.
2. It Can Reduce Labor Costs
Giant enterprises have the financial power to maintain reliable payroll departments. However, in-house payroll procedures are a money burner for small/medium-sized businesses. If you outsource, you can save a lot of money. Here’s a quick comparison you should do right now.
Identify how much you spend on employees who handle payroll-related activities. Then, compare the amount with the pricing plans of an outsourced payroll provider to see how much you’ll save.
3. You’ll Reduce Compliance Risks in Your Business and Potentially Avoid Paying Penalties
According to the Australian Taxation Office, as an employer you are responsible for taking care of your annual tax liabilities. Otherwise, your business may face penalties for neglecting legal obligations. The penalties often come from calculation errors, failing to file payroll tax statements on time, and deducting less than the law requires.
Small business owners are susceptible to these mistakes because they aren’t experts in the world of complex and ever-changing tax regulations. The good news is that outsourced payroll providers can help you stay on top of tax requirements.
After all, they have the skills, resources, and experience to calculate values accurately and file taxes on time. Eventually, you comply with government regulations and potentially avoid penalties that hurt productivity in businesses.
4. You’ll Gain Access to Advanced Technology
With outsourced payroll service providers, you can access powerful technology that takes your business to the next level. For example, reliable third-party providers use robust payroll software programs, bookkeeping applications, and Human Resource Information Systems to offer multiple solutions.
As a result, you eliminate technology advancement costs in your business. You’ll forget the hassle of frequently updating payroll software applications to the latest versions. Even better, you’ll avoid regularly adjusting in-house technology to fit the most recent payroll tax tables.
In short, third-party providers have the modern tools you need to keep your payroll running smoothly.
5. It Improves Data Security in Your Business
Statistics say that 43% of cybercrimes target small businesses. That said, how safe is the payroll data in your in-house computer network? Do you have sufficient resources to future-proof your technology against malicious cyber-attacks?
Outsourced payroll providers place measures that secure your payroll data against cybercriminals. For example, they use backup technologies and multiple server locations to streamline business operations in case of a cyber breach. Third-party providers also leverage powerful anti-malware technology to detect unethical activities before they bring disaster to your business.
6. You’ll Access Accurate Reports for In-House and Accountant Use
Small businesses usually have less time to focus on payroll tasks, increasing the chances of mistakes. Outsourced payroll providers give you access to a reliable team that solely focuses on streamlining payroll tasks to enhance accurate reporting. With accurate reports, you can make data-driven business decisions.
How to Choose an Outsourced Payroll Provider
You need to consider the following factors to help you choose the right payroll service provider.
How Accurate Is the Outsourced Payroll Provider?
Accuracy is a crucial factor when choosing a payroll provider. After all, what’s the point of paying for services causing wrong payroll tax calculations and inaccurate employee wages?
Make sure you only partner with a skilled and experienced third party. Check the provider’s existence period in the industry, the methods they use to handle your payroll, and customer reviews (or case studies) on their websites.
Does the Payroll Provider Offer Customised Packages?
Basic payroll packages may work for now, but what happens when your business grows? The truth is that your compliance and payroll needs increase as your organisation grows. Therefore, you need a personalised payroll services package that grows with your business.
Does the Payroll Provider Guarantee Data Security?
Payroll data is super sensitive since it entails personal information. For this reason, ensure the third-party payroll provider has stringent cyber security policies put in place.
For example, you need a payroll provider with data-backup solutions to avoid downtime in the case of a cyber breach.
What’s the Cost of Hiring the Payroll Provider?
Payroll outsourcing costs less than hiring an entire in-house team. However, ensure the provider doesn’t have any hidden charges.
Why Outsource Your Payroll Processes to Visory?
At Visory, we combine data, business processes, and people to bring you the best payroll services. The following factors make us stand out in the industry.
- We offer secure payroll services in Australia and abroad. Our cloud-based platforms operate under stringent cybersecurity measures to ensure your payroll data is safe. Our skilled professional team also manages your payroll to avoid data breaches.
- We reliably handle all your payroll tasks. That way, you get extra time to focus on core business activities that increase profit in your business.
- Accurate reporting. Calculation errors are the primary cause of payroll-related penalties. Our payroll experts are here to help eliminate errors and increase accuracy in your payroll tasks.
- Our prices are affordable. Each package we offer is only a fraction of the cost of hiring an entire in-house team. Plus, we have a custom pricing plan that ensures you only pay affordable prices for the services you’ll get.