Whether you’re a start-up or a business that has been around for years, the Human Resources (HR) function — including managing payroll — should not be underestimated. The payroll process can be confusing, time-consuming, and even costly. So much so that outsourcing may be the appropriate solution. Below, Mirella Nielsen gives five reasons to outsource your payroll
1. Increases your time
Depending on the jurisdiction, managing the payroll can be complex and time consuming. When this task is outsourced, the hours spent on ensuring the company is compliant, keeping up with changing regulations, and training staff on internal systems is eliminated. In return, this time can be spent focusing on the core capabilities that drive your company’s growth.
2. Reduces your costs
Outsourcing payroll tasks is often the more affordable solution for many small to medium-sized business, as related expenses such as personnel, software and training are eliminated. Furthermore, the hidden costs that are linked with incorrect payroll handling should be considered, such as penalties and fines for late filing to authorities.
3. Lets you focus on your core business
Outsourcing is a growing trend. In fact, nearly every business outsources at least one critical function, such as website hosting, accounting, or HR services. Partnering with a professional provider to handle your payroll allows your organisation to focus on core capabilities and invest in strategic resources to increase the value of your company.
4. Mitigates risk
A critical task of a payroll provider is to ensure your company is following local rules and keeping up to date with regulations. Especially in jurisdictions like China, this is not an easy task, as regulations and local laws are complicated and dynamic. With the help of a professional payroll provider, you’ll have the assurance and confidence in your preparation and filing of payroll-related paperwork and tax matters.
A critical task of a payroll provider is to ensure your company is following local rules. In jurisdictions like China, this is not an easy task
5. Improves security
Professional payroll service providers invest significant amounts in specialised staff and software to maintain a robust and fully secure payroll system. It would be detrimental to any business if confidential information were to mistakenly be made available to individuals not meant to see it. By outsourcing the task of calculating and distributing this data, it’s possible to limit risks involving a breach of confidentiality.
CSC offers corporate administration and international expansion services. Their HR and payroll services include preparation of monthly payroll slips, managing required pension contributions, and employment visa applications. To learn more, visit cscgfmapac.com or contact apacbusinessadvisory@cscgfm.