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Top 5 Reasons Why Outsourcing Your Payroll is the Smart Choice

Top 5 Reasons Why Outsourcing Your Payroll is the Smart Choice

Megan Veldman

For many businesses, salaries and wages are one of the biggest overheads. Managing this non-core aspect of the business can be time consuming and complicated. If salaries and wages are not processed on time, it can negatively impact staff morale and create the impression that the company is not financially stable. Staying on top of your payroll obligation to employees and SARS can be a headache. This is why more and more businesses are choosing to outsource their payroll processing to professional payroll administrators.
Here are the top five reasons businesses choose to outsource their payroll:
1. Keep payroll data secure and confidential 

It can be embarrassing and detrimental to morale if the wrong eyes fall on the wrong payroll information. By outsourcing your payroll, sensitive and confidential payroll data is calculated off-site, so there is little chance of a breach in confidentiality.
The recent introduction of PoPI (The Protection of Personal Information Act) requires companies to conduct themselves in a responsible manner when collecting, processing, storing and sharing employees’ personal information by holding them accountable, should they abuse or compromise any personal information. Payroll is often the most confidential information of an organisation and it has to be secured in a PoPI compliant manner.
2. Outsourced payroll saves time 

One of the major challenges to in-house payroll processors is simply the amount of time it takes to complete and the inability to find much in the way of efficiency. If you handle your payroll in-house, you know that it requires a lot of time and attention to detail. That demand on your time increases as your staff grows. Each pay period becomes a series of checks and balances to ensure no errors are made while handling a considerable amount of data that varies from employee to employee.
That is time taken away from the core tasks that help you manage and grow your business. When you outsource your payroll, you immediately free up all that time. You can devote that free time to refining sales and marketing strategies and improving workflow efficiencies. The inability to relinquish control, and the failure to delegate tasks to better manage your time is a bad business habit you need to give up.
3. Avoid costly penalties and filing worries 

Payroll experts stay current with the ever-changing tax rules and regulations, so you do not have to. When you choose to outsource, you won’t have to worry about filing payroll tax-related paperwork. Trained professionals can handle all the calculations, direct deposits and SARS tax payments according to the latest rules and regulations, so you do not have to worry about penalties for paying your taxes late.
4. Avoid technology advancement costs 

A constant question for business owners is whether they have the latest version of their payroll software and the most recent tax tables installed on their computer. Using the wrong tax tables can result in stiff penalties. Paying a maintenance fee and having to upgrade software is a fixed cost ongoing. Outsourcing payroll removes those costs / headaches and keeps payroll running smoothly.
5. Eliminate guesswork 

Most payroll providers can give you a wide selection of payroll reports and everything you need to see to run a clean and concise payroll. You will even get a completed payroll journal entry, listing all your debits and credits. There is no guesswork! Get all your payroll information in concise, easy-to-understand formats. For your convenience, you will even have access to your electronic payroll data, fully downloadable into Microsoft Excel & PDF.
A worry-free payroll
A professional payroll provider employs people who know payroll processing--professionals who specialise in the complexities of regulations, government compliance, taxes and human resources. It is what they are trained to do and the core of their service guarantee. You can save yourself a lot of time, money and headaches when you outsource your payroll, so you can get back to growing your business.
To find out more about outsourced payroll services, contact your nearest Moore Firm