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Benefits of outsourcing your payroll

Productivity

Payroll processing inside your business is a time-consuming process. Keeping track of benefit deductions, garnishments, new hires and terminations, paid time off as well as legislative regulation changes can be frustrating tasks. Outsourcing your payroll to us allows employers to concentrate on their core business and frees up the business owner to work more on strategic tasks that could ultimately affect your bottom line. Regardless of the number of people employed by your business, attending to payroll demands a great deal of time and attention to detail. Outsourcing payroll immediately frees up precious time. 

Affordability

The direct costs of processing payroll can be greatly reduced by working with a payroll provider. Big businesses can afford to maintain robust payroll departments. However, for Small/medium-sized businesses, having an in-house payroll process is a money burner. If your business has fewer than 100 employees, there’s a very good chance that you can save money by outsourcing your payroll operations. Do the math. Figure out how many hours your employees are devoting to payroll-related activities, calculate how much you’re spending and compare the amount to the plans offered by FirstPlace Assurance & Advisory. 

You will be surprised by the result. When you consider the cost of an employee’s wages, then add in benefits, that can really add up quickly. If you are the owner of a small to medium size company and you are trying to do payroll yourself or in-house, the cost of the time spent is even greater. If you outsource payroll, you don’t have to worry about your payroll processing company calling in sick, resigning, wanting to take a vacation OR wanting to request a possible maternity leave that you have to pay for. There’s also the matter of confidentiality when it comes to payroll. If an employee wants to “share” how much a fellow employee is making that can cause extreme drama in the workplace. 

Avoid Payroll Software update costs

A constant question for small 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. By outsourcing your payroll to us, you remove those costs / headaches and keeps payroll running smoothly.

Improved data security

There’s a fair amount of risk that comes with in-house payroll. The door is wide open for identity theft. Employee records can be viewed by those who handle payroll. Employees can tamper with records for personal gain, and there’s also the risk of embezzlement. Aside from these employee risks, you’ll need to consider the security of your payroll software. While the software itself could be relatively secure, you may house your data on a server or network with security flaws that could leave you open to data theft.

Comparatively, by outsourcing your payroll to us, it means your data is stored on highly-secure servers that use cutting-edge encryption technology, along with redundant data backups. If you want this same level of security on-site, you’ll need to spend a significant amount of capital to create a secured network. 

Compliance Requirements

As your outsourced payroll provider, we will ensure compliance and avoid unnecessary penalties that relate to non-compliance. Compliance of laws, regulations and mandatory rules is of utmost importance.

Access to a variety of services

Even a seasoned accountant has a limited skill set. With outsourced payroll services, you typically get a variety of services and the benefit of an entire organisation. Aside from the standard payroll and tax calculation, we can, you offer additional value-added services like contract generation, contractor services, labour law compliance, access to medical aid benefits, workmen’s compensation payments, and bookkeeping services. Once you have identified the services most relevant to your needs and communicate that with us, we are able to allow you to customise a plan based on your specific needs.

Looking for Payroll Services for your company?

Our team of chartered accountants and registered tax practitioners is available to assist you. We use the latest cutting-edge technology that allows you to reap all the benefits as discussed above and more. We are also in the perfect position to provide you with accounting and bookkeeping services, allowing us to save you even more time to spend focusing on key tasks. 

Reach out to us on 010 005 5452 / 066 086 6065 or www.firstplace.co.za / info@firstplace.co.za

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