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Top five reasons why you need payroll automation

Payroll automation software helps reduce costs and streaamline your business
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Some of the world’s top performing organisations are investing in best practice and lean processes. Not only does this provide lower operational costs, it provides key insights, intelligence and reduced risk. Anyone in payroll knows that compliance – or keeping up to date with it- can be a huge pain point. Payroll automation severely reduces this pain point and makes compliance much easier to manage.

Payroll automation costs less

The more manual the process, the more hands you need to throw at it. Payroll staff is expensive. Salaries can range on average from $60,000 pa for payroll officer to $120,000 for senior and manager roles. The cost actually is much higher when you consider the total cost of hiring and retaining payroll staff:

  • hiring (recruiting) costs
  • training staff
  • stationery and IT
  • memberships to associations

So have you considered the average cost you are paying to process per payslip?

$202.41 per pay slip*

*average cost per pay slip for small organisation with less than 50 employees◊

As the organisation gets bigger the costs decrease at an accelerated rate. Top performing organisations however are able to cut their costs per pay slip by well over 50% of averages.

Mid size organisations paid $15.06 on average in 2016. However the top performer in this category only paid $5.08. Where do you fit? top performing? or average?

Cut Down Costs

Time is money, and payroll automation software definitely helps reduce the time it takes to process payslips and related activities.

Automation can also help cut down on printing costs, such as pay slips, which employees can check online instead.

You can more easily add new employees and make salary adjustments to records when an employee quits or is terminated. If tax rates change, your tax tables can also be automatically updated in a computer-based system.

cut-costs using payroll automation software

Reduce errors- pay correctly

Automating payroll has a major benefit that it ensures accurate payment to employees. Paying inline with awards and overtime, whilst considering employee benefits and leave, can all be automated. You can reduce errors further by integrating payroll software with other applications such as HR, ERP or accounting systems.

Pay your taxes right

Reckon it’s important to pay your taxes correctly? we do too. With ongoing changes to tax legislation it can be very difficult for businesses, even with payroll staff, to keep up to date with. However, with tax with-holding automated through payroll automation software, businesses can avoid non-compliance and potential large penalties from the tax man.

Streamlined Processing

Running a lean mean smooth machine?

Payroll automation can cut down on the process of running payroll, data gathering, information processing, disbursement, and reporting.

The right payroll software can easily integrate into other business systems such as HR  and accounting software. This allows you to gather key insights from pay or employee data that can be used to further streamline other business processes- giving you the domino’s effect.

Payroll often gets neglected come time for Kaizen (ahem, continuous improvement!). This is often an overlooked function for such initiatives. However even simple changes and alignment to legislation can mean savings of 1000’s to hundreds of thousands of dollars. This is even more true if there are errors in your payroll process.

Insure Compliance

Hmm, we’re guessing this might be another important one to keeping your organisation up and running?

Australian taxation law is constantly changing, tax margins and bands are always moving, and legislation is becoming stricter. Although this may be good for businesses and employees, it can present challenges for organisations as they need to constantly remain up-to date with such changes. They also need to provide ongoing training for payroll staff. Expensive!

According to the Australian Payroll Association:

51.46%

of employers have no external advisory regarding payroll◊. Do you know what that means? it means these employers are taking unnecessary compliance risk .

Not only would a company be liable to fixing any error they make, they may also incur penalties for failure in compliance. This makes it critical for businesses to look at payroll automation or pay-roll outsourcing.

◊ Data based on Australian Payroll Association 2016 Payroll Benchmarking Study.

 

 

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