Here’s How To Eliminate Your Payroll Risk
For many organizations, payroll management services would offer an invaluable alternative to internal payroll processing, but, for a number of reasons, they fail to see this fact. According to a survey by Techpoint.africa, 80% of Nigerian businesses and SMEs do not pay taxes and have no understanding of what is required to do that properly. This makes a huge case for payroll management outsourcing.
A couple of reasons have been adduced as to why several establishments often choose to process payroll internally. Chief among the reasons is the misconception that in-house processing is more cost-effective than outsourcing; this is followed by the desire to keep employee wage information confidential. Yet another reason is the desire to have control over payroll data, so that last-minute changes can be handled.
Organizations with minimal changes in tax obligations often prefer to manage payroll internally to save costs. However, this is not a sustainable practice, especially when the time spent on managing the process is considered. In addition, without proper understanding of payroll processing and the use of a good payroll program, many businesses make costly mistakes. For instance, taxation rates change intermittently; the rates used to compute employees’ tax for a particular month may not be applicable after a 6-month period. Bungling these rates may lead to penalties, and sometimes legal actions, against a business.
While many businesses grapple with handling payroll functions in-house, using manual bookkeeping or payroll apps, several others have discovered the many advantages of hiring a payroll management service provider. In a poll taken by Paychex, one-quarter of in-house payroll managers were concerned with staying current on tax laws and regulations, 21% complained about the extensive time spent processing payroll manually, while 16% showed concern about managing taxes, withholdings, etc. for employees in different locations.
The decision to outsource a part of an organisation’s business operations such as payroll processing might not be an easy one. However, due to the time-consuming and complicated nature of payroll and tax responsibilities, forward thinking businesses are increasingly looking for trusted providers like Strategic Outsourcing Limited, and here’s why.
Processing payroll consumes a lot of time, even with the use of software programs. Checking the accuracy of records, calculating salaries and deductions, and complying with government procedures often come at the cost of valuable time that could otherwise be spent on more important business priorities, such as increasing revenue, chasing leads and enhancing customer service.
By outsourcing your payroll processing to an experienced provider like us, you’ll have all the time to focus on business functions that are necessary for the growth of your business.
Avoid Costly Penalties
Payroll tax problems remain a major challenge for many organizations that do not have experienced hands to manage their payroll functions. Tax policies change often, with alterations made to tax laws, tax rates, or deadlines for submitting reports. The 2019 Finance Act recently disrupted the tax ecosystem at a national level, and many business owners were left confused on the new policies and regulations. Smart business owners are consulting payroll experts to help them understand these changes to avoid fines and penalties for late payment or underpayment. That’s because, regardless of the reason for wrong or late filing of taxes, great penalties and even legal actions often await defaulters.
Investing in expert payroll process managers will certainly mitigate complications that may arise from payroll tax problems.
Mitigate Payroll Fraud
According to the Association of Certified Fraud Examiners, payroll fraud happens in 27% of all businesses. This kind of fraud takes different forms, ranging from falsified documents and commissions to making up false injuries for insurance claims. Such issues arise when employees have access to confidential components of the payroll or when there are no strict internal control measures in place.
Outsourcing to a payroll service provider who will have an objective approach to all payroll processes, with employees having no access to confidential information, is a definite way to mitigate fraud. Furthermore, as expert payroll providers, we are known to invest in systems that safeguard important client data.
Access To Payroll Experts
Payroll processing is not a basic back-office task. Many organizations, in error, attempt to manage their payroll with little knowledge of payroll management. Managing payroll is a very meticulous task and minor errors could result in expensive damages for an organization.
As payroll management service providers, we employ experts with a keen understanding of payroll processing. We specialize in the intricacies of payroll processing and taxes, as well as compliance with government regulations. We are also adept at verifying data, finding mistakes and correcting them to avoid problems.
As an independent consulting organization offering outsourced payroll solutions that guarantee compliance with all federal and state laws across Nigeria, our in-depth knowledge and understanding of Nigerian taxation laws, payroll systems, reimbursement management, compensation, and benefits offerings put us in a position to provide you first-class service that ensures compliance and operational efficiency, allowing you to focus on your core business.
Our trained professionals handle all the calculations, direct deposits, and governmental tax remittances according to the latest rules and regulations. We also handle the required record-keeping and reporting to ensure that your payroll is processed efficiently, accurately, and right on time.
In addition, we provide a wide selection of payroll reports, which include overtime and monthly salary reports, salary MIS reports, and everything needed to run a clean and concise payroll.
Yes! Each business has unique goals and needs. Nevertheless, since payroll processing is an area of operations that requires a great degree of expertise that is definitely different form your core business, payroll outsourcing would be extremely rewarding. The benefits are bound to improve the sustainability, profitability and efficiency of your organization.
So, why not kick the risks associated with payroll processing today by outsourcing your payroll function to us?
Call us on 08163801364 or 09029542801