Payroll Outsourcing Gaining Momentum – Myths Debunked
Payroll process outsourcing is a growing trend among enterprises in today’s world. However, many business owners hold some myths, which are busted here. Payroll, an important function for any business, is a complex process that many organizations face problems while handling. Payroll outsourcing providers are on a rise since most companies prefer to outsource.
However, there are many businesses that bear myths about this process, because of which they hesitate in outsourcing their payroll processes.
Here are some of the payroll outsourcing myths debunked for you:
Knowledge for in-house payroll is required. All you need to have an understanding about is your business. When outsourcing your payroll you will only be required to have in place a point of contact, reliable enough to provide the required information to your outsourcing provider at the right time.
No control over the payroll process
It is commonly believed that outsourcing the payroll function will cause you to lose control over the entire process, which is not true. The entire process is still under your control, while your Payroll services Australia only manages the process for you. Govt of Australia has introduced a one touch payroll system learn more about it at https://www.ato.gov.au/business/single-touch-payroll/
There is a belief that payroll data stored outside the organization’s premises is unsafe and vulnerable in case of system breakdown. However, note that the payroll providers invest heavily in the technology they use for processing your payroll. This means that they have robust disaster management systems in place, in case there is system breakdown.
Your data is also legally safe since the passing of the Data Protection Act. Your outsourcing partner is required to comply with the legislation that is associated with the act.
It is a common payroll outsourcing myth that the services provided by payroll companies is unreliable, which is not true. On the contrary, a payroll company may prove more reliable for your organization’s payroll since they have the required expertise for carrying out the process accurately and as per the laws and regulations.learn more about payroll rules for employees at Australia by clicking here
No access to data for running reports
It is believed that upon outsourcing the payroll processes, the data will no more be available for running reports. This, however, is not true. The Payroll services Australia today, use software that make data available for their clients easily. Hence, you will have all the data available whenever you have to run reports.
So what is Payroll Outsourcing?
Once upon time, Payroll Outsourcing only extended to bureau services whereby, businesses sent the relevant payroll information, and their provider would carry out the necessary calculations, provide reports and pays lips for the employer to distribute to their employees on payday.
Today there is a wide range of payroll services that can be rolled into a Managed Payroll Outsourcing Service. Businesses and organizations’ can effectively have their provider do the following:
- Manage all HMRC queries
- Answer staff payroll queries
- Calculate staff pay
- Arrange distribution of pays lips
- P60 Printing
- Electronic Filing
- BACs payments to employees Bank Account.
Payroll services Australia will, aside from seeing increased market growth, also likely see major advancements in process as competition also increases. Likewise with more companies choosing to adopt outsourcing over software solutions, more partnerships and acquisitions among software and solutions provides will also likely be evident.
With outsourcing of non-core activities gaining popularity, the expected growth in the payroll outsourcing market may barely scratch the surface on the depth of adoption of outsourcing of these kinds of services and the class of service that outsourcers will be able to provide in the future.