• New Wave Accountants

What to Look For When Outsourcing Your Payroll - Our Guide

Updated: Dec 12, 2019

In the days of old, business owners, especially small business owners, handle their employees’ payroll. Nowadays, more and more Australian businesses of various sizes and industries are turning to payroll services to do the job. But what’s behind the popularity of payroll services in Australia? What should you look for if you decide to partner with one?

Benefits of outsourcing payroll services

Payroll management is a manual task due to the requirements of accurate calculations of deductions, taxes, and salary adjustments for each employee. In large and growing companies, having a dedicated payroll officer may not be enough to handle the salary concerns of all the employees.

Delays and mistakes can be costly for both the business owner and employee alike. Small business owners are not exempt from this problem since they also have to juggle payroll management with accounting, marketing, and other important meetings. By outsourcing your payroll services, your business becomes more competitive by:

- Freeing up time for more important tasks

- Saving money on payroll operations and preventing mistakes

- Improving accuracy

- Complying with tax regulations

- Tracking and compiling wage data

- Streamlining generation of payslips and leave forms

Characteristics of the best payroll service provider in Australia

To reap the benefits of outsourcing your payroll, the service provider you need to choose should have the following characteristics:

(1) The payroll service provider must be more efficient than your current payroll system

It doesn’t make sense to contract your payroll system to a company that also uses manual logging or spreadsheet technology. The payroll service you choose should have the equipment and processes that would ensure faster and real-time updates of your payroll data and calculations.

Ask the prospective provider of the kind of technology that they use and let them demonstrate to you how the system works. Then, make an estimate of the cost of outsourcing to that company in dollars per minute, minutes per employee, or dollars per employee. Choose a provider who can process the most number of employees in the least amount of time at least cost and the least number of mistakes.

(2) The provider must have the expertise on tax and labour laws to ensure your compliance

A common payroll headache that confronts every employer is to determine the amount of taxes, mandatory benefits, tardiness & absence-related deductions of each employee. Doing this task every month will prove to be a pain, even if you have just ten employees. The more employees you have, the heavier are your payroll responsibilities. Only a payroll service provider with technical competence and keenness on detail would be able to carry out this work for you.

(3) They must keep your payroll visible for you and your employees at all times

Payroll visibility is now possible with cloud technology. Your employees should be able to access their individual pay data, as well as their work attendance records instantly. A payroll service provider with cloud infrastructure will also enable you to track work attendance and wage costs in real-time.

(4) The provider must be professional and trustworthy

Payroll data is sensitive company property. The payroll service provider should use secure platforms and technologies that limit data access to the appropriate people. Additionally, they should always be open to communication and feedback to ensure that any glitches in their system will be fixed promptly and adequately.

(5) The payroll provider must be based in Australia

Australian business owners have particular needs and concerns that only fellow Australians can and will understand. Partner with an Australian-based payroll service provider who will make payroll software and systems support specifically tailored for your needs and size.

If you’re looking for an accountant or bookkeeper on the gold coast, get in touch with us today for a free consultation.

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