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Payroll Services FAQs

Frequently asked questions

Hopefully, most of your questions will have been answered in the buying guide, but if not, here are a few more common questions that are often asked about payroll services:

What kind of services does a payroll provider usually offer?
Most providers supply similar services, such as creating management reports, calculating payroll and tax deductions for each employee and printing and delivering cheques. Other related services may be available, but at additional cost. Be clear about which features are offered and be sure that they match your company needs.

Why should a company consider payroll outsourcing?
For most companies, payroll is not a core competency. Therefore the decision to outsource the function can not only save money, but also enable you to reallocate resources to your core business.

When, specifically, should a company consider payroll outsourcing?
Outsourcing should be a strategic decision. Ask yourself:

  • Is there a system in place in the organisation that will issue payments effectively and on time?
  • Is the company internally able to do the calculations and deal with the details of the payroll with almost 100% accuracy, timeliness and compliance to tax law and government legislation?
  • Does the company have the personnel (and time) to review the accuracy of all the above operations?
  • Is the total number of staff fewer than 20 people?

If you can't answer yes to all of the above questions, you may want to consider outsourcing payroll.

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