There are several benefits to be gained when making use of a quality payroll service as opposed to handling the processing in-house:
Avoid SARS Penalties
Many small business owners end up paying hefty penalties because of the late and incorrect submission of UIF, SDL and PAYE. Notably the sheer volume of work involved in managing such can cause a business owner to lose focus, which in turn can lead to financial losses and stunted business growth. A quality payroll service will assist with weekly, monthly, and annual payroll processing and tax submissions in a timely manner and thus help to eliminate the risk of unnecessary penalties because of payroll processing mistakes or late submissions.
Reduce Overheads through Payroll Outsourcing
Even if you make use of a part time accountant to manage the books, you may still end-up paying more on overheads and personnel costs than would be the case of if you outsourced your bookkeeping and payroll processing to a quality service provider.
If you want loyal employees you must pay them on time and ensure that there are no mistakes in the payment. They want accurate payslips. If you make mistakes in the payroll processing you will lose the trust of the employees. A quality payroll service will ensure accurate and up to date salary information and on time payment of employees, in addition to submission of essential returns.
Time is the one resource that must be managed carefully, especially if you run a small to medium sized business. More often than not, you will find that even though you have set specific goals, you never seem to be able to reach them simply because you don’t have enough time to handle administration such as bookkeeping, payroll processing and VAT submissions. By making use of a payroll service, you in effect, take the first step towards reaching your goals because you manage time better.
Reduce Software Frustration
Small business owners often find it difficult to keep up with the technology changes and upgrades in payroll software. By outsourcing the HR processing tasks to a professional bookkeeping company, the headaches associated with software licenses and upgrades become something of the past.
Avoid Confidentiality Breaches
A problem often experienced by small business owners is that the payroll manager or bookkeeper gathers highly confidential information about the business, operating procedures and the human resources of the company. If the bookkeeper leaves, the knowledge is lost. In addition, there is always the risk of confidentiality breaches when handling the payroll processing in-house. When making use of an outside company known for professional conduct, the risk of information leakage is significantly reduced.
Unlike a person employed at the company, needing days off for sick or annual leave, the payroll service provider is available throughout the year. This means that the business owner will never have a situation of delayed payments or processing because a key person is not at work.
When outsourcing to a quality payroll service, the small to medium size business saves time, resources and money.