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Five Top Reasons To Outsource Your Payroll

Salaries and wages are one of the biggest overheads for many businesses. Managing this very important but non-core aspect of the business can be complicated and time consuming. If salaries and wages are not processed timeously, it can negatively affect staff morale and create the impression that the business is not financially stable. There are also obligations to SARS that must be complied with.

More and more businesses are choosing to outsource their payroll processing to professional payroll administrators. Bel-Essex has dedicated payroll administrators to assist you.

The five top reasons to outsource your payroll are:

1. Keep payroll data secure and confidential

By outsourcing your payroll, sensitive and confidential payroll data is calculated off-site, so there is little chance of a breach in confidentiality. It can be highly embarrassing and harmful to morale if the wrong eyes fall on the wrong payroll information
 
In addition, the recent introduction of POPI (Protection of Personal Information Act) requires companies to conduct themselves in a responsible manner when collecting, processing, storing and sharing employees’ 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. In-house payroll requires a lot of time and attention to detail. This demand on time only increases as your number of employees grow. Each payroll period is made up of numerous checks and balances to ensure that all information has been processed correctly.

The time spent on payroll is time taken away from core tasks that help you manage and grow your business, such as, refining sales, marketing strategies and improving workflow efficiencies. By outsourcing payroll, you are left with time to devote to other aspects of your business. Failure to delegate tasks to better manage time and inability to relinquish control are bad business habits that should be given up as soon as possible.

3. Avoid costly penalties and filing worries

Payroll experts stay current with the ever-changing tax rules and regulations so that you do not have to. You will not need to worry about filing payroll tax-related paperwork when you outsource your payroll. Payroll professionals can handle all the calculations, direct deposits and SARS tax payments in accordance with the latest rules and regulations. Non-compliance results in penalties.

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 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.
 
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 how we can assist you with your payroll, please contact us by completing the contact form.