Over the past year or so, Australian business and financial news has been littered with articles about small and large firms running into potential legal trouble due to lack of proper care when it comes to proper payroll compliance. More than one major Australian brand has been the subject of scandal and been forced to make back payments to staff counting into the many millions of dollars, or face big fines from regulators.
To avoid these costly headaches, startups or existing companies may choose to outsource their payroll to a virtual CFO who has the experience and knowledge to run their accounts with the right governance and oversight.
It’s about more than doing the right thing by your workers
Payroll compliance can be a legal minefield. More than simply calculating hourly and overtime rates, companies need to make sure they’re paying the correct holiday loadings, any agreed bonuses, as well as severance and redundancy packages. Bookkeepers also need to keep track of the age of employees, particularly when they’re new to the workforce, as this can affect their rate of pay over time.
On top of all these considerations, there can be variations in income tax depending on where and in what capacity your staff is deployed, not to mention payments to superannuation funds.
Getting help from a professional accountant
If a business is still in its startup phase, the best move may be to outsource payroll considerations to an experienced accountant, so that its directors free up their time to focus on growing their client base and product range.
Fines for not paying workers correctly can run into six-figure sums for each contravention of regulations in Australia. With that in mind, the cost of outsourcing payroll is negligible if it means employers can be free of anxiety and know that their employee overheads are being properly balanced.
Organisations of all types can outsource their bookkeeping to Propellor Advisory. We can keep total track of your payroll over the complete cycle of an employee’s life cycle within your business, from their first day right up to retirement.