Payroll Outsourcing

The Attractiveness Of Payroll Outsourcing

If a company is survive and even thrive in the highly competitive business environment that characterises the global economy of the 21st century it needs a laser like concentration on its core functions and service and product offerings. Without this focus the energies of the company can be dissipated and it will find itself in a position that will make it vulnerable to the competitive pressures caused by other, more focussed organisations.

One of the ways to ensure that this does not happen is to outsource those functions that are not core to the functioning of the business. These ancillary functions can include bookkeeping and the management of payroll.Outsourcing these functions can benefit a company in a variety of different ways. Firstly the payroll outsourcing means that less investment in complex payroll management systems is required and that the staff contingent of the accounts department can be dramatically reduced. These two knock on effects from payroll outsourcing can have dramatic results.

One of the effects of payroll outsourcing is that the company becomes a much leaner organisation and that the employees can concentrate on the strategic imperatives that drive the organisation in its quest for success. Without the burden of payroll management these employs can focus on the job at hand and perform their duties freed from concerns about the payroll management which becomes the responsibility of the company that is supplying the outsourced services.

By making the decision to make payroll outsourcing a strategic priority the company also ensures that it will not fall foul of the increasingly complex legislation that governs the management of payroll in South Africa. The legislation is in place to ensure that the correct payments of such levies as PAYE occurs when each and every employee is paid. The professional payroll outsourcing partner will take care of this responsibility and the company will not have to incur the continuous expense of training payroll management staff in the continually changing payroll requirements. This can represent a significant saving to the company.

Payroll Services for Small Business Make Sense

An organisation that is just starting out on the road to success faces extreme pressure to both manage cash flow and ensure that its responsibility as far as taxation and other employee related expenses are dealt with professionally. These are only some of the reasons that a small company will choose to make use of payroll services for small business. There are a variety of different organisations that provide specialist payroll services for small business and retaining the services of one of these companies can make excellent business sense to the smaller organisation.

Payroll outsourcing can both save their company money and improve its efficiency as well as the productivity of its employees who will appreciate the fact that they are being paid on time every month and that the correct paperwork to make their personal tax submissions easier will be available at all times.








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