Processing payroll is an essential practice regardless of business size. Using an outsourced payroll provider to streamline workforce management makes tasks that would take HR staff a lot of time more manageable.
When deciding what service is right for you, it’s essential to find out what provisions are made for compliance, award interpretation, and usability.
Here’s what you need to know about payroll outsourcing and how to make a choice that best suits your small business needs.
What Are Payroll Outsourcing Services?
An outsourced payroll service is when an external specialist organisation, such as the professionals at Pay Cat, manages and processes payroll with efficiency.
Outsourcing payroll in Australia gives you time to focus your attention on other workplace efficiencies and can include anything from:
- Deducting employee tax
- Paying employees
- Working out benefits and reimbursements
- Employee self-service features
- Leave management
- Maintaining payroll records
- And more.
When looking at who would be the right provider for your business, considering the positive aspects will help guide you towards products and services that deliver many advantages, including:
- Saves time - Outsourcing your payroll enables employers to free up administrative staff to handle other business operations.
- Saves money - Streamlined processes and per payslip payments are just some of the ways outsourcing saves money.
- Leverages technology - Cloud-based software has revolutionised the payroll process, giving clients the flexibility to operate systems from anywhere. Employment Hero Payroll are leading the way to accessibility.
- Ensures business continuity - Outsourced payroll services better manage payroll data, leaving employee information less susceptible to fraud.
You’re freeing up the time of your administrative team, who can remain focused on handling queries from employees and other business operations.
You’re also giving your HR department the opportunity to shine in other areas, including projects, onboarding new hires and conducting training for staff development.
Some companies are better at servicing enterprise business reporting requirements, whereas others are experts in small-to-medium business payroll processes.
The two most commonly used options are:
A Full-service Payroll Service
When you’re looking for providers who manage the full payroll as a service process, generally, all you need to do as the client is supply employee and business data. They look after everything so you can successfully manage other core business activities.
Overall, it is the easier option, and proper systems must be in place to access core data to accurately pay employees.
Product Access Only
If you use a provider's workforce management and payroll software alone, the programs simplify your payroll management, but you perform all the admin. Your business will receive support through training, how-to guides, and, in some cases, like at Pay Cat, online courses.
As a core and critical business activity, it’s essential to get it right, and when selecting a provider, you should never compromise on the following:
1. Automation
Automated payroll compliance is essential to HR solutions and payroll services as it streamlines the process. This means automated leave calculations, notifications, super payments, and tax obligations should be automated, making payroll management a more accessible workplace practice.
2. Secure data
Your business and staff data are exceptionally secure when you choose Pay Cat’s payroll specialists. Our team knows that security is vital for keeping track of employee information and running a company's core business.
Payroll software like Employment Hero Payroll protects against cyberattacks and possible data security breaches.
3. Monitors compliances
Whether using complete payroll services or software, navigating the complexities of Australian payroll compliance should be an expected key feature. For small businesses, this process saves time and makes managing payroll easier.
4. Employee details are kept up-to-date
When choosing outsourced payroll services, employee details must be regularly updated. Having inaccurate information can affect legal requirements and deductions. You want to be sure the provider is vigilant about this aspect.
5. Easy to use software
Software needs to be easy for everyone, no matter how much training and resources they can access. Ask yourself whether the provider's payroll management systems are:
- Easy to use
- Have seamless integration with other HR software
- Tracks time and attendance
- Maximises efficiency
6. Affordability
Finding out whether the provider is transparent about their costs without any hidden fees will quickly determine whether it is the right choice for you and your team. You need to ask them what you’re paying for and get them to break it down to determine if you’re getting the right level of service for the associated costs.
Are You Ready To Grow with Payroll Outsourcing?
Many businesses are choosing to outsource payroll, as it is a smarter choice to save on labour costs and administrative overheads.
When you outsource your payroll, it can be hard to choose a provider. The best way to do this is to ensure that the payroll experts and their software meet compliance standards and make the process easier, not harder.
Pay Cat knows how essential it is for businesses in Australia to concentrate on growing their brand and spend less time thinking about the next pay run and how successfully it will be completed. We specialise in supporting key business practices and automating payroll information.
If you want to know more about what we do as payroll providers, we recommend contacting our team and getting ready for the peace of mind we know we can give you.
