The Importance of External Payroll Health Checks
Why is it critical that businesses periodically perform external Health Checks on their payrolls?
- Payroll is the biggest expense in most businesses. Saving a fraction of the payroll can make a massive difference on a business's bottom line,
- The risk of costly penalties from local authorities for not complying with tax and labour regulations. Payroll departments are often not equipped or capable of staying abreast of ever-changing tax regulations,
- Unfortunately, payroll is the most common source of fraud in businesses. Very few people normally have access to payroll because of the confidential nature of salaries and wages. This often results in payroll fraud not being timeously detected,
- Payroll vendors continuously improve their systems and add new features that can assist businesses. Businesses often "miss out" on these new features simply because they are not aware of them,
- Processes in HR and payroll should be reviewed constantly as businesses grow and their requirements change.
We recommend that businesses contract an expert in Payroll Services to perform a Health Check at least once in 18 to 24 months. The bigger the payroll the more important this becomes and the bigger the benefit. It is "Penny Wise and Pound Foolish" to spend millions on payroll and not be willing to spend a nominal fee on a Payroll Health Check.
Do not confuse a Payroll Health Check with a year-end audit.
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