Processing payroll within your organisation is a time-consuming process that takes a dedicated team in order to stay compliant with the South African Revenue Services’ (SARS) tax requirements as well as keep track of new hires and terminations, benefit deductions, sick leave and paid time off. Outsourcing the payroll process frees up the business owner or accounting personnel from repetitive tasks and benefits the business in the following ways:
A payroll provider can greatly reduce the direct costs of processing payroll. Large corporate concerns may be able to maintain payroll departments, but for medium-sized business, having an in-house payroll department is an unnecessary overhead. Outsourcing the payroll process means your business does not have to pay a dedicated payroll employee’s wages or worry that they may call in sick or take a vacation at a crucial time in the payroll process.
Avoid SARS mistakes
If your PAYE submissions are incorrect, you can pay penalties for errors, omissions or late payroll tax filings, which becomes very costly. Keeping up with the challenging world of government regulations is a time-consuming process and mistakes can lead to audits and penalties, which no business wants. A professional payroll provider is committed to staying abreast of the latest government rules and regulations and changes in tax rates. In addition, a good payroll provider is far less likely to make a serious error than your in-house staff.
Regulations to the Protection Of Personal Information (POPI) act have been published and once it is implemented, businesses will need to put extremely strict measures in place to protect their staff’s personal details. The payroll process is complex and security risks like identity theft or tampering with personnel files for personal gains can occur. With an external payroll provider, you are assured that you have an extra layer of security in place since a quality payroll provider will invest in extra security systems for storing and protecting data.
Saving on technology costs
A constant problem for business owners is ensuring they have the latest version of payroll software and the most recent tax tables installed on their computers. Upgrading software on an annual basis is a fixed on-going cost which can be removed by outsourcing your payroll.
Businesses that use their office managers or accounting employees to multi-task and manage payroll run several risks. If the employee managing your payroll suddenly leaves, you lose all your payroll knowledge with them. In addition, getting employees to perform payroll on top of their own roles means there is less strategic business focus.
Outsourcing your payroll guarantees a payroll expert will be handling your payroll, bringing all their knowledge to the process. With a payroll service, quality and output speed won’t be compromised by other business issues, and you won’t have to retrain your employees if your key payroll person leaves the business.
Find out more about outsourcing your payroll
The GG Group has a leading payroll solution that brings you all the benefits of outsourcing your payroll. To find out more about our payroll services and how you can eliminate your administrative overheads, contact us today.