Why outsourcing your payroll is a good idea to have a stress free tax year-end
In addition to other key considerations when outsourcing your payroll, the time of year can also drive your decision to outsource.
The beginning of the new tax year is a time when many organisations change vendors theyve been considering for a while or replace old ones that arent working out.
The benefits of payroll outsourcing become more apparent during tax year-end procedures. Payroll mistakes made during the year dont only impact the employees pay, but also the companys e-filing with SARS. These mistakes have a ripple effect on company compliance, taxes, leave accruals and liabilities, pensions, garnishments, and more.
Common mistakes picked up on during tax year-end procedures are: Over or underpayments, misclassifications of IRP5 codes, missing e-filing deadlines and incurring subsequent penalties, out-of-date software that is not legislatively complaint, bad record-keeping, and inadequate access to historic information, to name but a few.
To avoid employee and company distress, payroll errors should be fixed as soon as possible by a payroll expert.
Ultimately, it is in your businesss best interest to have all the payroll resources on deck as you can before SARS filing season sets in. Just think about how much youll be able to save when you have a subject matter expert on your side.
Best practice is to make the change as soon as possible, but dont rush it, if youre still settling on the right solution or provider. If your current payroll outsource provider or software solutions are not meeting your expectations, its a great time to start exploring other options. The sooner you have a good, outsourced payroll provider on your side, the sooner you will start to save time and money and have a clean payroll to rely on.