In the ever changing world of payroll taxes and regulations, preparing and managing a payroll can be a daunting task. It involves a lot more than just determining the salary and statutory deductions such as NHIF, NSSF, and PAYE. Here are six reasons why your organization may want to outsource the payroll processing service.
- To save costs and time.
A large organization that has unlimited resources can afford to maintain a large payroll department, but for a small business, establishing an in-house payroll team can be a big burden and only adds costs to the company’s bottom line. Consider the huge expenses such as payroll software costs, training costs, printers, printing and distributing pays lips, creating tax documents etc.Time is money and there is a lot of time spent in producing payroll information.Outsourcing your payroll gives you time to focus on the core aspects of your business.
- Accuracy
If you choose to do payroll in-house, any errors your staff make can result in huge penalties from the Kenya Revenue Authority (KRA) or other government institutions. Making payroll mistakes can be costly to the company and painfulto the person who commits them. No one wants to have the government behind their back because of committing errors that could have been easily avoided. It gives you peace of mind, confidence and there is no room for errors when working with qualified payroll providers who have the required resources and expertise to process your company’s payroll.
- Privacy and security
It can be embarrassing and detrimental to employee morale if their payroll data is accidentally or maliciously exposed to other staff. By outsourcing your payroll, sensitive and confidential payroll data is calculated off-site, so there’s nochance of breach in confidentiality. Payroll providers have technologies that can spot and alert clients to various types of payroll fraud, such as payment manipulation and phantom workers.
- Efficiency
When you outsource payroll processing you don’t need to worry about staffing, training, vacation coverage and other internal issues when youuse an efficient, outsourced payroll service provider.
- Team of Experts
The team of experts is constantly updated on current trends and changing regulations on payroll management. A team of experts is more attuned to leading Best Practice in the market; they can source for the best software. They are in touch and aware of all the statutory requirements. By outsourcing payroll an organization can take advantage of this competency.
- No fear for losing your HR staff.
Having one person in your company doing your payroll can be a business risk. If they get a new job, all their payroll knowledge and secrets walk out of the door with them. When you outsource your payroll service, you eliminate the worry of losing your valuable HR personnel.
