Good question. These are the two key reasons why we believe outsourcing is beneficial to small business owners.
- Regulatory Compliance
Calculating correct employee entitlements are complicated subject. Even if you are using payroll software such as Smartly, Xero payroll etc, it is very less likely that you are not compliant with Holiday Pay Act. One case example is Auckland Council. Almost 20,000 current and former Auckland Council staff could have been underpaid $18 million in annual leave, sick pay and public holiday entitlements. Even though you are using the payroll software, unless you have a full knowledge of employer obligation, employment relationship and holiday act, it is very hard to maintain accurate payroll data.
- Cost saving and prioritising core business.
Processing payroll in-house means investing in the necessary computer equipment, payroll software and providing training to ensure that payroll is processed correctly. Additionally, Employers must stay up to date on changes in tax rules, personnel and filing deadlines. Missing such matters can be costly for your business and expose yourself to additional liability.
Processing payroll is unlikely to be a core function of your business. Any time and resources that you devote to it, means less time you have to focus on revenue generating activities. By placing an expert in control of your payroll processing, you can better use your time in areas more closely related to your core business.