If you even mention using a payroll service in Australia to peers and colleagues, you’ll probably have been warned of a ton of hazards, both real and imaginary, that go along with these services. Here we give you the low down on the real payroll service hazards to avoid.
In general, outsourcing payroll is a great option for businesses looking to avoid investing a considerable amount of time and energy into a non-revenue generating part of their business in which simple mistakes can prove to be incredibly costly when they lead to compliance issues and penalties.
However, it’s also a decision that has to be made well. You are effectively turning over money, personal details and an important part of your legal responsibilities to a third party, and you must choose wisely to avoid fraud and other issues, click here for michigan’s cracking down on payroll fraud. Finding a well referenced, long established and reputable service provider will be a big part of making the best decision for your business.
- Information Fraud.
- Money Fraud.
- Filing Failure.
Obviously, this is the number one hazard when using a payroll service in Australia or anywhere in the world. You’re handing over private and confidential information of your employees as well as your own business information. Obviously, the simplest way to avoid this payroll hazard is to do your due diligence, check company references and making sure you choose a service provider you truly trust. They will have access to your tax information, your bank accounts and those of your employees, remember. checkout more about how to use payroll service providers on https://www.morrisandessex.com/how-to-use-a-payroll-service-provider/
Obviously, a similar concern that goes with payroll services in Australia is the money you will be required to hand over, which is meant to service your payroll but could potentially be diverted to other accounts. And remember, the real kicker is that you will be liable for any taxes or salary that falls due, not the service provider. Failure to turn over money can stem from true fraud, or simple incompetence, failing to hand over the money at the right times. Avoid this hazard by checking into the liability clauses in your contract, and insuring the company is correctly insured and bonded.
A big part of the service offered by payroll service providers here in Australia is the compliance with legislation they offer. They need to complete your paperwork in a legally compliant manner, and get it filed on time. Unfortunately, this is a case of you staying on top of the information. Even though a third party is handling it for you, you need to follow up yourself and ensure that the work being done on your behalf is filed on time.
In the end, it boils down to you still remaining and invested and interested party in the processing of your own payroll. While a good Australian payroll service provider will handle all the above processes diligently and on time, the ultimate responsibility lies with you and you should remain an invested party at all times to ensure your needs are being met as and when they should be.