The Shortcomings of Business Payroll Services

A business is only as good as its people. Business payroll services are an essential yet often overlooked part of any business. Businesses, small and large, make mistakes with their payroll that end up costing them a lot. Qantas is one such example. They underplayed some staff by AU$8000 per year while overpaying others by as much as AU$12000. This example is just one of many. There are numerous complexities to payroll that in-house payroll departments often aren’t equipped to handle.
A qualified and professional payroll service provider can turn a headache into a well-oiled part of your business.

Common Challenges With Payroll Service

Many companies don’t regard payroll as a core part of their business. Incorrectly executing payroll can cost you money, time and have legal ramifications that can haunt your business. Outsourcing payroll can be a great solution to reduce your workload, save money and remove your direct accountability for governance and controls.

  • Compliance with Australian payroll law is difficult to manage. Australian payroll law is notoriously complex, and it is updated every year. Navigating the maze of requirements is a job for payroll service providers or seasoned professionals, and it should not be neglected.
  • Employee classification can cause havoc if you don’t do it right. Misclassifying employees means that their taxes are not paid correctly, which can lead to legal action against your business.
  • Superannuation breaches. Ordinary time earnings (OTE) can be challenging to calculate. It includes commissions, shift loadings and allowances but does not include overtime payments.
  • Tax and termination pay. Termination payments and ETPs (employee termination payments) are complex. Some businesses still follow rules that were put in place more than five years ago but are now outdated and have been superseded.

What to Look For in Payroll Service Providers

There is an unfortunate trend of payroll service providers over-promising and under-delivering. That is why you need to be selective when choosing the company to outsource your payroll. The right payroll service in Sydney can help your business flourish, while the wrong one can hamper your business. Unfortunately, outsourcing is a risky proposition, with 58 percent of companies currently outsourcing their payroll saying they won’t do it again.

  • A company that will cater to your needs. Not all businesses are the same, and you need a payroll service that offers customised service.
  • Clarity on responsibilities. A central issue with outsourcing payroll is that businesses are unclear on what payroll service providers will be doing, leading to additional costs in time and money. A service that is well defined and with fixed service fees is needed.
  • Experience is akin to success. A payroll service with 20 years of experience will know exactly where all the pitfalls are and guide you around them.

Customer Focussed Payroll Service in Sydney

Clearly, a high level of expertise and knowledge is needed to manage your businesses payroll properly.
Hiring Five Elements (5ECA) offers you accounting personnel and an external tax expert all in one. If you want complete satisfaction, contact us today.