Outsource Or Keep In-House: Getting The Best From Your Payroll System
How much time does your HR department spend solely on payroll? Many companies spend a great deal of their time organising payroll and ensuring accuracy, which leaves less time to run other areas of the business. With this in mind, isn’t it important that you are able to maximise the efficiency of your payroll system to prevent errors and maximise the productivity of your business? So does that mean keeping your payroll in-house, or outsourcing it to a reputable company?
The choice is yours, but before you decide it may be worth considering these strategies and benefits.
Create A Fool Proof System
An effective way to ensure that all of your employees are classified and paid correctly is to create a pay policy and put it in writing for all. This policy should verify how all employees are classified and how all wages, salaries, raises and promotions are calculated. It should also clarify how your business will deal with mistakes that are made.
Outsourcing This Process:
If you choose to outsource your policy writing and changes, allowing an outside company to keep track of all of your payroll information you could see your information being held in a secure offsite location as well as greater peace of mind. Added password protection and secure back up facilities means that your data will be safe, whatever happens onsite.
Ensure Your Processes Are Examined Regularly
It should be company practice to audit or examine your payroll processes regularly – at least every year. Even if your company has an automated system, there can still be errors. As we all know – errors cost businesses time, money and sometimes reputation.
If you overpay an employee, miscalculate tax or fail to increase pay for an employee that was given a promotion you will end up losing money. In order to avoid tis it is important to double-check all of your paperwork and ensure that all of your add-ons and data connections are working correctly.
Outsourcing This Process:
Calculator at the ready. Outsourcing your payroll may save you a considerable amount of money depending on your staff numbers. Both as a primary product of spending less on staff and systems and as a secondary product of not making costly mistakes when paying employees. Doing the sums yourself will show you whether or not outsourcing will be advantageous to your business.
Keep Your Knowledge Up-To-Date
The rules and legislations surrounding employee pay is changing regularly, so you need to stay on the ball if you want to make error free payments every month. You can download the significant information off relevant websites and pass on that information to your managers and employees. Pay special attention to any new legal legislation which could have negative reproductions if not followed.