Is running your own payroll management worth the risk?
Payroll is one of the most critical functions in any organisation and while ensuring that employees are paid accurately and on time might seem like a straightforward process, behind the scenes, many organisations are dropping the ball with payroll management.
When mistakes get made with payroll, it can lead to a slew of pressing issues, both financial and reputational. But let’s be honest, with a multitude of staff, varying compensation structures, and intricate taxation regulations, the room for error is substantial.
From calculating overtime to navigating complex benefit deductions, the payroll landscape is fraught with intricacies that require specialist knowledge and unwavering attention to detail. Because as we’ve seen with some big-name companies, the consequences of getting it wrong can be enormous. Although more than half of Australia’s wage recoveries in 2021/22 came from large corporate employers, there were a significant amount of unpaid wage recoveries, roughly $250 million, from smaller organisations, too.
When payroll management goes wrong
Inaccurate pay not only impacts morale but also sparks a domino effect that disrupts the entire work ecosystem. Employees feeling undervalued are more likely to disengage, affecting productivity, team dynamics, and ultimately, your organisation's bottom line.
Payroll isn't just about paying employees; it's also about adhering to legal and regulatory standards. Mistakes in tax calculations, misclassification of employees, or even delayed reporting can have serious legal repercussions. The implications? Hefty fines, legal battles, and a tarnished reputation that takes years to rebuild.
Payroll problems are not just administrative inconveniences – they're critical issues that reverberate throughout the organisation. In the modern business landscape, where talent retention and operational efficiency are of utmost importance, no one can afford to overlook the significance of accurate payroll management.
Identifying if your organisation has payroll risk
The reality is many businesses don’t have dedicated payroll resources and any time an employee is being taken away from the role they were employed to do and being given more administrative work and training for a role they were not employed to do; you are putting your business at risk.
Furthermore, when this critical function is left to employees who are not qualified in payroll management, you run a much higher risk of errors occurring, which can place a gridlock on operations and lead to all the problems we have outlined.
Managed payroll services, which are used by 1 in 3 Australian companies according to the Australian Payroll Association, help organisations mitigate payroll risk by ensuring their payroll is up to date with industry standards and legislation, securing sensitive employee data, and leveraging the latest self-service platforms to ensure your employees are having a positive experience.
What is payroll costing you?
Effectively managing your organisation’s payroll not only improves employee experience but also optimises efficiency, offering more room for strategic, informed decision-making. But what does it cost you per payslip?
The Australian Payroll Association (APA) provides an average cost per payroll, factoring in payroll related expenses and the annual count of payslips generated. These payroll-related costs include elements such as salary expenses, consulting fees, recruitment fees, training costs, and temporary staff costs.
According to APA, the average cost per payslip in Australia for companies who do payroll management in-house stands at $125.79, which fluctuates based on organisational size, location, and industry.
Source: Australian Payroll Association
When they examined the costs of outsourced payroll, they found the cost of outsourcing was less than the cost of providing payroll services in-house at all employer sizes.
Outsourced payroll can help free your organisation from the financial burden and compliance risk associated with an in-house team, potentially reducing areas such as training costs, risk management costs, and temporary staff costs. Having access to a payroll specialist means you can avoid cost-intensive hurdles and reduce your compliance risk with regulatory awareness.
A strategic partnership with Findex Managed Payroll
Findex Managed Payroll Services has been designed by those that have experienced first-hand the race to the bottom of scaled providers using overseas resources. Findex provides tailored solutions, robust data security, transparent pricing, and scalability. Outsourcing your payroll to us means you can focus on what truly matters— empowering your team towards innovation, growth, and excellence.
Remember, in the world of payroll, precision isn't just a virtue; it's an absolute necessity. Book a complimentary review of your payroll needs with our Australian payroll professionals and discover how easy payroll management can be when you work with a reliable payroll management team. With no upfront costs* for a limited time, there’s nothing for you to lose, but a lot more time and savings to gain.