Processing and administration of payroll is a necessary and vital function in any business with employees. In many businesses, it is the single biggest overhead.
Employees have an expectation of being paid accurately for the hours they work in a timely manner. The rates of pay, normal hours of work and frequency of payment are usually set out in a contract of employment.
Employers also have a statutory responsibility to make the relevant deductions from pay for income tax (PAYE), social insurance (PRSI) and other deductions such as Universal Social Charge (USC).
It is important therefore that both employers and employees are correctly registered for tax purposes. Failure to do so can leave the employer potentially liable to heavy penalties and adversely affect employees’ social welfare entitlements. It can also lead to a Revenue audit.
Employers also have a responsibility to comply with relevant labour legislation on such areas as working time, rest periods, rest breaks and annual leave.
If payroll is not processed correctly, this leads to employee dissatisfaction and a decrease in staff morale. This can lead to poor productivity and ultimately results in lower profits.
Proper administration of payroll also means the employer maintains control of payroll cost. Detailed cost reports provide the necessary detail to manage labour cost effectively.
So payroll does matter! Failure to administer it properly can be costly. It deserves an appropriate level of attention from employers.
OPTiM Payroll offers a complete outsourced payroll solution providing better payroll cost information at a very affordable fee.
For our FREE eBook ‘A Guide to Irish Payroll’ visit us at http://optimpayroll.com/free-ebook/
Outsourced Payroll Management client set-up fee waived for SBC members. Set-up charge normally €500 plus vat.
For SBC members no set-up charge subject to a subject maximum one day of conversion/programming time. Additional days for client accounts requiring more than one day’s set-up will be charged at the normal rate.