Essential Functions of Outsourced Payroll Operations
Payroll is a crucial function that helps keep businesses running, and it is one of the most complex processes they face. Payroll specialists, for example, ensure that staff are paid correctly and on time, as well as handle records and paperwork necessary for taxes and compliance with government rules.
Many businesses delegate their payroll processing to an outsourcing agency. Numerous activities are involved in the process, and it might be difficult for one person to manage them all.
Outsourcing agencies that offer payroll services can provide employers with the highest level of payroll management. They are well-equipped and experienced in designing, implementing, maintaining and improving their clients’ payroll systems so that they can generate maximum output while at the same time ensuring compliance with legislation.
This article explores eleven essential tasks outsourced payroll operators handle and highlights further advantages of outsourcing your payroll.
If you require more urgent assistance with your payroll needs, reach out to MASA today and access the leading edge in outsourced payroll services.
Essential Functions of Outsourced Payroll Operations
One of the main areas that an outsourced payroll specialist will be responsible for is ensuring that they take care of your payroll administration tasks seamlessly and accurately.
Payroll administration is what keeps businesses running. This is why your payroll specialist must have the right level of training, experience and expertise to handle all administrative activities associated with managing payroll on all levels.
A well-trained outsourced payroll operator will be able to provide you with an accurate assessment of what needs to be done for your company to achieve maximum output.
Capturing and reporting on leave and absenteeism
An outsourced payroll specialist will capture the correct data for you to accurately report absences such as sick days, vacations or other forms of leave. They can also work with HR managers to determine the right amount of leave for certain employees.
This task may seem quite simple but is often overlooked by payroll staff. However, it can lead to incorrect payments if done incorrectly and cause issues within your company.
By having an outsourced payroll specialist handle this task, you can be confident that everything is being handled correctly at all times and that you are meeting all compliance requirements of this process.
Transfer of salaries and wages to employees
The person responsible for administering your payroll should accurately calculate all salaries and wages due and ensure to transfer to employees on time and correctly calculated.
This step is one area where there can often be a significant variance between what your company must pay and what you actually paid. Apart from the financial impact, getting the transfers wrong can cause unnecessary administrative burdens for your business and result in many queries that need to be addressed.
By allowing payroll specialists to handle these tasks on your behalf, you will free up valuable time and resources, which should help improve operational efficiencies across the board and maintain employee satisfaction.
Preparation, print and delivery of payslips
Another area that an outsourced payroll specialist will handle for you is preparing, printing, and delivering payslips. This part of the process provides a record of employee salaries and deductions made from their paychecks.
It can also reduce payroll errors by ensuring all information provided to the outsourced payroll specialist is accurate and up-to-date before processing begins.
Again, this frees up time and resources for your business while ensuring all employees have access to the correct information at any given time.
Customised payroll reports for your business
A leading payroll specialist will be able to offer you customised reports that help your business achieve maximum operational efficiencies. They will be able to provide information on the specific areas of payroll administration where improvements can be made and outline why they are beneficial for your business.
This is extremely important because it helps businesses identify potential problems early and provides detailed insight into the current payroll operations.
Ensuring statutory compliance
Ensuring statutory compliance by monthly preparation of the monthly EMP201, preparation and submission of EMP501, and annual IRP-SARS returns is a key task that an outsourced payroll specialist will be able to handle for you.
This ensures your business meets all legislative requirements and keeps on top of changes in legislation as they happen, helping it avoid steep fines or other sanctions associated with non-compliance.
By having an experienced and qualified specialist take care of these tasks, your company can focus on its core business activities while ensuring maintaining compliance at all times and avoiding legal issues.
Assistance with all payroll related queries
As mentioned in the previous point, payroll processing is complex and can become even more so when legislation is introduced or changed.
This makes it extremely important to have access to the right support when you need it most, especially in an environment where payroll processing needs are constantly evolving.
By having a qualified outsourced payroll specialist take care of these tasks for your business regularly, they will be able to assist you with all payroll-related queries and any potential legal issues.
Further advantages of payroll outsourcing
Outsourced payroll solutions are beneficial for businesses that want to improve operational efficiency, minimise the risk associated with human errors and ensure they meet statutory requirements at all times.
By allowing qualified outsourced payroll specialists to handle these tasks for you, your business can focus on its core activities while ensuring all employees are paid accurately and on time.
Further advantages of payroll outsourcing
- Improved operational efficiencies
- Reduce costs
- Increase time saved
- Minimise the risk associated with human errors
- Achieve maximum operational efficiencies
The more businesses understand how an outsourced payroll solution can help them improve operational efficiencies, reduce costs and minimise the risk of human error, the more likely they are to choose this option.
Conclusion
Ultimately, whether your business chooses to outsource payroll processing or handle it in-house, you will need a reliable and skilled workforce.
An outsourced payroll solution can provide the expertise and experience required to ensure your business procedures are up to date and you remain compliant with legislation at all times.
Contact MASA today to learn more about our outsourced payroll services or to discuss your specific requirements. You can also check out our previous article on How To Save Money by Outsourcing Your Payroll and other expert industry insights.
