Reasons to Outsource Your Payroll
​​Outsourcing payroll functions has become increasingly popular among employers. Even the most stoic of Kiwi businesses who held the view “It only takes 30 minutes” have evolved their mindset to “That’s 30 minutes too long!”. But what is behind this shift? Here are three compelling reasons why businesses are outsourcing their payroll.​
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1. Your opposition is getting ahead.
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Paying your team is a necessary business function, but it’s a non-profitable black hole of time. Whilst not all tasks within business are appropriate to outsource, payroll is one such activity that can be delegated to free up your valuable time to pursue more profitable goals. Truly smart operators realise there aren’t enough hours in the day and this is one task they can offload economically.​
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2. Your payroll person cannot possibly know everything they need to.
It is one thing to shift money to employees every payday, but it is quite another thing to ensure that complex legislation is being met. Payroll tools are often marketed as ‘compliant’, but part of the human task is to critique these softwares. You’re asking your payroll person to simultaneously be a pilot and a crash investigator: fly the out-of-date plane and also react to signs of an impending crash. Signs they don’t even recognise.
Non-compliance with the Holidays Act is rampant which has proven that most Kiwi payroll professionals don’t know when their payroll software is making mistakes. It will be uneconomical for 99% of employers to train and retain this necessary expertise.
Payroll Intelligence responded to the requests of our clients, by launching an outsourced payroll offering. We call it Tempus Outsourced Payroll.
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​3. Protect your business.
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Most employers typically only have one headcount in their team who carries out this task - what is the succession plan? At a small scale the question might be what if our payroll person calls in sick on payday? But at a larger scale, what if the business is moving past this person’s capability? Employers cannot be tethered to obsolete software, just because it’s all a payroll person has been trained on. Outsourcing makes evolution more fluid because it’s a lot easier to move on from a third party than a permanent employee.
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​Conclusion.
In summary, outsourcing payroll offers employers a strategic solution to streamline operations, ensure compliance, and enhance security. By partnering with a trusted payroll provider, businesses can focus on their core objectives while enjoying the benefits of efficient and reliable payroll management.
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