It is very likely that your business has employees and so it must have some kind of payroll process. You can either carry out the processes in-house or you can contract them out to an external third-party. When you contract out to someone else, it is known as outsourcing and it is one of the most common things that businesses do. When people think about payroll, they think about one simple procedure like just handing out salaries to staff, but it is much more complex than that. It involves many different kinds of activities that all have to be performed together in order for the payroll to be effective. There is a lot to do in a payroll set up, like setting up the payment method that is to be used, withholding income tax from employees and then remitting those same taxes to the tax department. You have to manage all employee deductions and then at the end of it, your tax forms have to be submitted as well.
This is a lot to do and that’s why many companies are outsourcing staff payroll because it just makes their lives a lot easier. There are so many benefits to outsourcing your payroll and they include some of the following.
- It saves you money – Many businesses make common payroll processing mistakes and if you try to carry out the payroll yourself, it’s going to cost you time and money and you’re going to have to hire additional employees to do the work. You will need to invest in the necessary computer equipment, the payroll software and then you need to provide training your employees as well. It is somewhat easier to outsource your payroll and there won’t need to be any additional purchases on your part which means that you save money over the long term.
- You can prioritise your core business – If you decide to do the payroll yourself, then you are dedicating time and resources to get and that means if you’re not focusing on your core business. If you sign up with an external service provider that can complete the staff payroll for you, you can use your time to deal more closely with your business and this will allow you to increase revenues and to increase sales. This isn’t a job for you and you should be concentrating on things like customer services and marketing. If you would like to learn more about Indonesian labour law and payroll procedures, then please have a look here for more information that will help your business.
By outsourcing your staff payroll, you will be saving yourself a lot of time and as we all know, time is money. You will be dealing with experts who know exactly what they’re doing and who have many years of experience behind them. If your business is audited, then you have nothing to worry about because all payroll issues are being properly taken care of. This is peace of mind that every business should have.