There are a number of commonly held misconceptions out there that sometimes stop businesses making the right decisions when it comes to payroll. We’ve taken the time to debunk a few of the most widely held so that you can bring more clarity to your decision making.

In-House Payroll Is Cheaper and Safer

This one makes a kind of intuitive sense if you don’t examine it too closely. Many people believe it will be cheaper and easier to simply hire their own in-house payroll team. There’s also the assumption that errors are less likely because an in-house team can be overseen directly. Unfortunately, though, none of this is true.

The fact is that hiring, on boarding, and paying an in-house team is more expensive than simply outsourcing your payroll needs. The costs of advertising for the job, going through the interview process, and then paying multiple new salaries far outweighs what you would pay to a payroll service provider. The third option – having members of your existing staff double as payroll – is even worse.

As for errors (and even fraud), these are actually more likely with an in-house team, unless you hire someone else specifically to oversee them at even more cost.

Taxes Need to Be Completed In-House for Transparency

Many people seem to believe that tax obligations ought to be calculated and filed in-house to ensure accountability and accuracy. But this isn’t true. The regulations, paperwork, and processes surrounding taxes change all the time and trying to keep track of it all while simultaneously running a business is needlessly stressful. Payroll providers always stay up to date with the latest tax changes and will ensure everything is taken care of compliantly and in a timely manner.

Setting up Payroll Is a One and Done Affair

Once a payroll system is set up it can’t just be left to run itself. Payroll operations require regular evaluation and updating to function properly. Information about the needs of your employees should be updated as people come and go from the company; of course, but it doesn’t end there. As tax rates change your payroll system will need to keep up, and the same goes for changes to the Medicare levy, overtime pay, HECS-HELP repayments, not to mention the substantial number of changes associated with Single Touch Payroll.

Payroll Is Just About Salary

A major aspect of payroll is ensuring that your employees are paid on time and in the right amount, but that is far from all it involves. Payroll operations are highly complex, taking account the pay, tax requirements, superannuation, HECS-HELP repayments, the Medicare Levy, accrual of leave as well as a host of the Fair Work obligations.

Get Fact-Based Payroll Services

The best way to ensure payroll is processed according to the facts and unclouded by unhelpful myths, talk to Aussiepay today about outsourcing your payroll.