26 Oct 2020

Payroll outsourcing: what you need to know

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, and more money in their pockets, as outsourced payroll providers are often able to do your payroll at a lower cost as they use software to automate many of the tasks involved.

Payroll providers may offer different levels of service which you can choose depending on what you need such as:

  • working out pay (including benefits and reimbursements)
  • deducting taxes
  • making any other deductions, such as retirement contributions
  • filing (and even paying) taxes with the tax office
  • making payments to employees
  • keeping payroll records

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:

Get the right level of service

Make sure your provider delivers the right level of service – you don’t want to be paying for what you don’t need. Understand what you’re paying for, what you’ll need to handle in-house, and what you’ll pay for extra services.

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 an accountant who’s familiar with the software you have.

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.

At BM Connect, we offer:

  • The expertise of an in-house team, but without the extensive in-house financial cost
  • Affordable and effective accounting services using the latest cloud-based technology
  • A comprehensive payroll solution to suit your needs
  • Industry-leading technology, so routine accounting and bookkeeping tasks are automated, making the process more efficient

To find out more about how we can assist you and your business, contact  Mariske Byrnes or your usual BM Connect adviser.

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