The risks of payroll and how to avoid them
For all businesses, payroll is often considered a task that’s out of the limelight of other internal operations. But even though it doesn’t have a direct impact on a business’s success, it shouldn’t be overlooked. Knowing the risks of payroll will safeguard your business for the future and will help secure its longevity.
How so? Pay your staff on time, reward them fairly and take their queries seriously, and you’ll hold on to your business’s most valuable asset – your people. Do the opposite by skipping payments and not paying close attention to detail, and you’ll soon find them walking out the door. Doing wrong by your employees can have lasting financial consequences for your business.
For more information on payroll regulations in Australia, check out the Fair Work Ombudsman here.
By outsourcing your payroll to Australia PEO, we take care of all the traps and risks associated with this business function so that you know your payroll is being processed compliantly and your staff are well looked after. Instead of relying on one person within a small to medium business to perform payroll compliantly, you can rest assured knowing a whole team of experts at Australia PEO are performing your payroll accurately.
What happens if one staff member has undertaken your payroll, they suddenly hand in their resignation and your staff are due to be paid tomorrow? Often, they’re the only employee within your business who knows how to pay your team compliantly. Do you know the login details of the accounting software you use? Are you aware of the compliance legalities and regulations?
Here are just a few of the risks associated with payroll compliance.
Ghost employees refer to all staff members who no longer work for the company but are kept on the payroll and are still receiving a paycheck. Believe it or not, ghost employees can be almost impossible to keep track of, especially for larger companies. Failing to eliminate all past employees from your system can cost the business a significant amount of time and money. It’s money you’ll likely never get back.
If you employ casual workers, then you’ll know hour padding is one of the most common risks of payroll. Hour padding is the term used to describe an employee who lies about the hours they’ve worked. If you’re still using paper timesheets or let your staff enter their own time hours, then you’re running the risk of your team fraudulently logging their hours.
By working with Australia PEO, you would eliminate the risk of hour padding altogether. We’re an open book when it comes to transparency between all staff members and we do our bit in holding them accountable.
Getting overwhelmed with compliance laws surrounding each classification of employment, from freelancers to contractors, casual workers and permanent? Some classifications don’t require you to pay tax, while others do. If you have an inexperience employee looking after your payroll, then you’re even more susceptible to compliancy issues surrounding classifications.
At Australia PEO, we’re fully equipped with experts who know and understand classification regulations in Australia. Working with us would mean you’d eliminate the risk and worry of incorrectly paying staff and taxes.
This has to be one of the most common challenges small business face when it comes to payroll. Due to lack of internal resources, they simply don’t have the security of multiple levels of clearance that Australia PEO can offer. These companies may be using old and outdated payroll software due to limited funds which can come with their own set of problems. Hackers are known to target smaller companies who use old platforms because they’re easy to target.
At Australia PEO, we use state-of-the-art software to process payroll for our clients to minimise the risk of hackers having access to and compromising our clients’ data.
As a business owner, it may feel like compliance laws change daily, and in some cases, they do. Even though you don’t mean to, acting non-compliantly when it comes to payroll can expose you to a whole series of legal problems.
It doesn’t have to be this way. Working with Australia PEO means you’ll be acting compliantly without even having to make an effort.
How to avoid the risks of payroll altogether?
Want to avoid the risk of payroll altogether? By partnering with Australia PEO, we’ll look after your staff and ensure you’re working within Australian employment law wholeheartedly. Why? Because we care about our clients, their employees and the overall success of their business.
By removing your sole employee who looks after the entire payroll process, and entrusting Australia PEO to manage risks as much as possible, you’ll also save time, money and resources, as well as the headache of compliance issues.
Australia PEO is Australia’s leading provider of outsourced payroll services. With a suite of professionals and state-of-the-art technology, we make sure to minimise the risks of payroll within our client’s business.
Call us today to find out how we can minimise the risks of payroll in your business.