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Does doing payroll payoff?

by Rich Watson, managing director of ADP Australia/New Zealand

If you ask a business owner why they got into business for themselves the answer will most likely be because they have a passion and knowledge for a product, service or industry. Few will answer because they wanted to delve into the minutiae of administrative tasks that go into running a business, such as payroll.

Furthermore if you ask successful business owners to determine what made their business a success, many will nominate that passion and knowledge as key drivers. Few, if any, will nominate personally handling back office tasks as a key determinant for success.

Leave it to the specialists

Using a payroll company provides many benefits for businesses. The cost of doing payroll internally is high. If it is the business owner processing the payroll, time doing the payroll is time that could have been spent on profit-generating business activities. Furthermore, processing payroll internally will take more time and result in more mistakes than specialist payroll staff taking care of it. Some organisations recognise this and hire specialist staff internally, but this can become expensive.

Another alternative is sourcing a payroll service organisation to look after the payroll. Not only can using a payroll organisation help to save a business time and money, it also helps them minimise the risk of producing noncompliant payrolls.

Some payroll service organisations provide valuable add-on services such as payment of superannuation or the provision of PAYG payment summaries. Some also offer access to free workplace advice lines and legislatively compliant HR templates.

Payroll organisations can also provide additional HR benefits to the organisation's employees through self-service functions for leave or training applications or to access and manage their performance appraisal process.

What to look for in a payroll provider

1. Getting the fundamentals correct

It is important that the payroll provider helps the business remain compliant and pays the business's staff on time.

2. Accessing the system

Having a system that is hosted externally that can be accessed via the web is very important. This enables you to access their payroll anywhere, anytime. Allowing for various modes to submit payroll - via phone, fax and the web - is also a benefit as it allows flexibility for organisations.

3. Security of the payroll content

Make sure the payroll service provider has secure systems that are protected by firewalls, encryption, intrusion detection, and site monitoring. It is also important that payroll data is held at multiple, secure locations to mitigate risk of data destruction.

4. Expert staff

Most payroll organisations have staff who are payroll specialists and are constantly trained on changes to payroll regulations.

5. Employee benefits

Some payroll services provide password-protected, self-service areas for employees to view their personal details, payroll information and history, and personal leave. This not only provides a value add for employees but removes the burden on business owners and/or HR staff of answering employee-related enquiries.

6. Managing multiple locations

If the business is operating across more than one state, ensure the payroll provider is national in their scope.

Focus on what matters

It is important that the payroll service offering matches the needs of the business. A strong service offering will not only benefit the business but will also benefit the business' employees.

Most companies can benefit from using the services of a payroll provider. It can help to save them time and money that they can reinvest in what they are passionate about - the future of their business.

About ADP

ADP provides comprehensive payroll and HR services to organisations of all sizes, across all industries. For over 35 years ADP's solutions have helped Australian clients manage their internal processes efficiently and accurately, allowing them to focus on core competencies and achieve their strategic goals while minimising risk.

For more information on ADP's services visit www.adppayroll.com.au. For a no obligation quote call 1800 000 729 or email marketing@adppayroll.com.au