There are three key areas to consider when delivering payroll in-house.
In the intricate world of business operations, payroll management stands as one of the cornerstones of employee satisfaction and regulatory compliance. The process of paying employees accurately and on time may seem straightforward on the surface, but as any business owner or manager knows, it's a multifaceted endeavour that requires meticulous attention to detail and a comprehensive understanding of various intricacies. In this article we highlight three key areas that can make or break your payroll operations:
How confident are you that your employees will be paid on time if your main payroll processor or bookkeeper is unable to deliver through illness or holiday? Many businesses become over-reliant on just one person for this critical area, and so any disruption can present a major risk.
2. Technical knowledge
It is imperative that all employment regulation changes, such as increases in Award rates of pay and conditions are managed, not to mention routine changes in the budget. If your in-house team struggles to understand and implement the ever increasing complexity of employment regulations, your business is at risk of non-compliance. Additionally employers must also contend with the implementation of STP Phase 2 reporting requirement of the Australian Taxation Office, the Fair Work Act, 2009, Modern Awards, Enterprise Agreements and the National Employment Standards.
With considerations around having a large enough team to cover absence, training costs to remain up to date, and software costs it is certainly worth considering whether outsourcing your payroll might bring a cost-saving as well as mitigate other risks.
Checkpoints for outsourced payroll provisions
If you outsource your payroll service at present, you may feel that you have covered the key risks, but there are still several areas to consider.
The last few years have been challenging for all businesses with remote working arrangements, and this is no different for your payroll service provider. Has your provider been able to maintain service levels during this time, delivering payroll accurately and on time, and crucially protecting your data whilst working remotely?
You should not have noticed any difference in service level if your provider has the right tools in place.
The last area to consider in terms of outsourced provision is the flexibility of the service. You should expect your provider to agree to a timetable with you that suits your business, and that gives appropriate amounts of time for each stage in the process. You should also expect them to make the process of providing payroll inputs as easy for you, the client, as possible. This could involve taking inputs directly from your HR system, offering tools for you to maintain your own data, or agreeing on a template to be used that is simple and effective for you to complete.
Is the service you are receiving meeting all of your needs?
If you would like to talk to a member of our payroll team about outsourcing solutions, or a member of our industrial relations team who can assist with accurate interpretation and implementation of employment regulation, please contact your usual Mazars advisor or alternately one of our specialists via the form below or on:
All rights reserved. This publication in whole or in part may not be reproduced, distributed or used in any manner whatsoever without the express prior and written consent of Mazars, except for the use of brief quotations in the press, in social media or in another communication tool, as long as Mazars and the source of the publication are duly mentioned. In all cases, Mazars’ intellectual property rights are protected and the Mazars Group shall not be liable for any use of this publication by third parties, either with or without Mazars’ prior authorisation. Also please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice. Content is accurate as at the date published.