Do some companies avoid expanding their workforce due to concerns about managing complex payroll systems? This seems to be the case. Payroll systems have become increasingly complex, requiring specialized knowledge to manage wages, taxes, annual leave, different state jurisdictions, and superannuation. Medium to large businesses have long understood the benefits of outsourcing their payroll needs to specialist companies. Now, more small and medium-sized enterprises are realizing the advantages of doing so as well.

Here are some benefits that businesses gain when they outsource payroll services:

1. In Australia, payroll regulations and requirements vary between states, making in-house payroll management for a national workforce time-consuming.
2. While some payroll software solutions are impressive, outsourcing eliminates the need for a dedicated staff member to manage payroll services. This ensures there is no interruption to payroll processing when staff members are on leave.
3. Outsourcing payroll functions is part of a risk management plan since the provider ensures the client meets all requirements for governance and compliance.
4. Professional payroll companies clearly define the separation of duties, providing transparency and an audit trail if needed.
5. Updating systems and software and retraining staff when laws and regulations change is unnecessary.
6. Payroll companies can quickly adjust to meet the evolving demands of a business, whether it involves integration, downsizing, or physical and geographical expansion.
7. Quality payroll services provide their clients with online access to leave application and expenses processing, further eliminating the need for ancillary staff to manage these functions.

Successful businesses recognize that outsourcing internal payroll systems has a measurable cost/benefit ratio. However, the peace of mind that results from knowing that this important function is being managed professionally is immeasurable. Don’t wait another day to discover how outsourcing your payroll requirements can improve your business. Refocus on your core business and profit from increased productivity.