As the term itself suggests, Payroll Outsourcing means letting someone else handle the payroll of your organization on a contractual basis. This can be an individual, an accountancy firm or a dedicated HR firm for this purpose.
With the increase in market competitiveness, rising costs and extraordinary developments in technology, it has become possible to outsource almost any part of your business and you can easily find a number of companies doing just that specific task and Payroll is one such task that has been witnessing increased outsourcing with every passing year round the globe from developing to developed countries. Not just you save on time and costs, you ensure that your employees get paid in time with least possible errors when you outsource this task to a reliable third party.
As per the “Australian Payroll Association 2015 Payroll Benchmarking Study.” by the Australian Payroll Association, around 28% Australian Employers were outsourcing their payroll function in 2015 up from around 25% an year earlier i.e. an increase of around 3% yoy.
Employers might still not be sure what advantages they may get by outsourcing their payroll function. Well, here are a few points in the favor:
- Reduced Costs: This is one of the major reasons why employers adopt to outsource their payroll function. Outsourcing the organization’s payroll to a third party will ensure that you save on the costs in comparison to doing it inhouse. According to the “Australian Payroll Association 2015 Payroll Benchmarking Study.” , an employer with employee size between 50 and 200 spends approximately $942 per employee on payroll function annually with an average of approximately $18 per payslip. This can be substantially reduced by outsourcing the payroll function to a third party.
- Focus On Core Business Functions: Outsourcing such functions gives you and your employees more time to focus on your core business activities. Also, you will not find yourself battling with figures before every payroll date.
- Reduced Chances of Error: A specialised payroll agency will ensure that your payroll is correct 99.99% of all times. It will ensure that all the necessary deductions have been made and you are good with the compliance part.
- Peace of Mind: Outsourcing your payroll to a third party will ensure that your employees are paid on time every time thus promising peace of mind both for you and your employees.
If you are looking to outsource your payroll function to a dedicated, third party specializing in the industry, you can visit Whiz Consulting and submit your contact information to get a customized quote or email us at firstname.lastname@example.org and we will get back to you as soon as we can.