7 Common Problems with Business Payrolls and How to Prevent Them

by Elliot Dean Health Guru and Web Specialist Many small businesses find that their staff don't have the right expertise to handle the demands of processing payrolls, resulting in lots of disgruntled employees. A lack of expertise can easily lead to mistakes, making the payroll staff feel continually overwhelmed and your employees very unhappy.

One solution to this problem is to outsource your payroll activities to a professional and experienced firm such as Crawshay Consultants who specialise in managing all aspects of company payrolls. Many small businesses are already taking advantage of outsourcing non-core business activities and have found that there are distinct advantages in doing so.

On the other hand, there are still numerous business operators who prefer to keep their payroll in-house. Continuing down this track however, can mean that you have to be very creative in overcoming the problems inherent in this course of action, which can become wearing over time.

So if your business suffers from any of the following 7 problems, it might be time to investigate outsourcing your payroll:

1. Wasted time: Anyone who manages their payroll in-house knows that it takes an inordinate amount of time to ensure that there are no mistakes. The more staff you employ, the larger the payroll activities, the greater the likelihood for mistakes and the more time required by payroll staff to keep everything afloat.

2. High overheads: Just imagine all of the paid time you could save if your staff didn’t have to calculate sick leave, long service leave, annual leave, deductions and taxes, as well as organise online payments and everything else that is involved in managing payrolls.

3. Security risks: In this day and age, data theft and hacking is a real concern, so if you don’t save your payroll data to highly secure servers you could be in trouble. Professional payroll companies always store their data on encrypted servers, so you don’t have to worry about security risks.

4. On-going training: Payroll staff, particularly those that lack the right experience, need to be trained in handling the payrolls, and must be kept up to date with any legislative changes. This increases a business’s overheads in both time and money.

5. Too many mistakes: Not paying the correct rates for shift work, weekend work or overtime can all lead to complications in back pay and taxes, as well as inexperienced staff feeling overwhelmed with all of the work. We all know that inexperience can lead to mistakes, which in turn can lead to everyone becoming stressed with the payroll department and the circle keeps turning.

6. Lack of staff: What happens if your most experienced payroll staff member is on holiday, at the same time as other office employees are on sick leave? With hardly anyone in-house who knows how to manage your payroll, you are only a step away from disaster. Outsourcing your payroll avoids this type of panic and ensures that your payroll is always on time, 365 days a year.

7. Wasted talent: In the current market place, every business needs to have all hands on deck to grow their business. Having senior staff occupied with payroll activities (something that could easily be outsourced), when they could be performing far more productive duties is a waste of their talent and experience.

Outsourcing non-core activities, such as the payroll, is one way that businesses can streamline their activities, reduce costs and free up time and resources, so that everyone can finally focus on profitable core business activities.

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Created on Dec 31st 1969 18:00. Viewed 0 times.

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