Why Your Business Payroll Systems Are More Important Than You Think
Payroll is one of the building blocks of any business. It is an integral part of any business as it is responsible for employees’ salary compensation and plays a vital role in ensuring you are compliant with various legislations. All too often, business owners view business payroll as something that is merely a procession function and one of the mundane, tedious tasks that need to be done on a monthly basis. However, payroll systems have greater importance than just ensuring your employees are paid on time. It affects every aspect of your organisation, from the reputation of your business right down to your overall employee morale. In this article, we look at why your business payroll systems are more important than you think, so read on to find out more!
Reallocation Of Resources
Thanks to the introduction of Single Touch Payroll, time that used to be spent reporting employee paychecks to the ATO has greatly reduced. With the assistance of single touch payroll software, reports are automatically sent to the ATO on a paycheck to paycheck basis, thus freeing up time that can be allocated to other tasks that need to be done. Payroll software also assist a business in keeping accurate and comprehensive details of data that are accessible at the touch of a button. Online payroll software is also up to date with ATO requirements, ensuring that you are always compliant and never run the risk of getting into hot water. The overall shift to automated payroll systems frees up valuable time and resources for your team to focus on other aspects of the business.
Ensure You Are Compliant With The ATO
One of the biggest ways payroll can affect your business is if you are found to be non-compliant with the ATO. Some of the factors that may contribute to not being compliant not declaring fringe benefits, late payment of payroll taxes, accidentally or falsely claiming employees are contractors or freelancers and not registering when wages paid exceed your monthly threshold. When found to be non-compliant, your business may face significant consequences such as penalty fines which may greatly affect your overall cash flow for the rest of the year. This is why ensuring that you are on top of your game with your payroll system is absolutely essential – failing to do so may very well make or break your business.
Keeping Employee Morale High
A critical aspect of the payroll system is its impact on the morale of your workforce. Employees need the reassurance that they are going to be paid on time, all the time. A late payroll may cause your workforce to question their worth and value in your organisation, on top of questioning your overall financial position as a business. An unhappy employee is one that becomes less motivated less efficient, thus resulting in underperformance and lacklustre behaviour. As we all know, employees are the backbone of any successful business – this is why the payroll system is so important in ensuring that employee morale is always kept high. The efficiency and success of your business counts on it!
Uphold Your Company’s Reputation
In addition to ensuring that your employees are paid on time, it is important that you keep up with your payroll in order to maintain your company’s reputation. As stated in our second point, failure to meet payroll regulations can result in hefty fines with the ATO. This can, in turn, tarnish your company’s reputation and make people wonder about your organisation’s reputation as a stable employer. Ensuring you are up to date with payroll and efficient with meeting your tax obligations is essential in preserving the good reputation of any business.
We hope that this article has given you some insight into just how important payroll systems are for any successful business. One can catch a quick glimpse at a company’s overall financial stability simply by looking at its payroll process which is why every business owner should avoid overlooking it and instead ensure the accuracy and timeliness of payroll.