As you plan your overall 2020 business strategy, now is a better time than ever to audit what’s working and what needs to be changed when considering staffing and payroll requirements.
Planning Your Staffing Requirements
When planning for 2020, your staffing requirements are a key component; you might ask yourself the following questions:
- Are you planning to expand or extend your business into new markets?
- What will your recruiting schedule look like?
- How are you planning to retain your current staff?
- Is this in the form of upskilling?
- Is this in the form of monetary compensation and what are the options?
Your employees influence the success of your business and can give you a competitive advantage within your industry by generating repeat business and growing your brand. Making sure your employees are always paid the right amount at the right time increases their feelings of job security, value and respect within your business. This results in increased levels of engagement and employee satisfaction making them more vigilant in delivering high levels of customer service. It also helps to reduce employee turnover and hence the cost of replacing staff.
Getting Your Payroll Right
In addition to planning your staffing requirements, it is important to ensure you get your payroll right from the beginning, this starts with getting your employment contract right. Retracing your steps and correcting mistakes in payroll can be time-consuming and very costly, from a time, cost and reputation perspective.
At Advivo Accountants & Advisors, we help you to focus on what you do best. We partner with HR and Payroll experts (Business 360) to provide you with the most effective and inexpensive solutions. First, we offer two complimentary meetings; one to discuss your needs and budget, then a follow-up meeting with our HR and Payroll experts to distinguish roles and responsibilities best suited to your needs, and ensure full compliance with award and legislation, so your payroll inputs are correct.
Penalties for Non-Compliance to Payroll Regulations
There can be severe consequences for not following the payroll regulations, for example, late payments of PAYG withholding tax, superannuation and payroll tax resulting from payroll errors. Underpaid payroll obligations can have an added interest amount; in addition to this, your business could be hit with extra penalties for non-compliance with payroll regulations, including non-deductibility of the expense.
The added interest comes as an unexpected outflow of cash that can impact your business’s ability to pay for stock and wages, ultimately decrease performance and profit. Penalties can range within tens of thousands of dollars and the size of penalties increase based on the size of the organisation, leaving your company with the serious possibility of being put out of business, not to mention the massive cost of time involved in; a potential tax office audit, correcting the errors, the risk to reputation and potential loss of staff and clients.
Advivo offers audit insurance which can help protect against this kind of unexpected cost. Talk to your Advivo advisor today!
Business 360 will visit your workplace for an initial discussion around your due diligence needs and workplace questions and can provide information on how they can carry out a review through workplace consultation, award review, pay level and wages check.
Get further advice on Payroll Compliance from our expert accountants and business advisors at Advivo. Call us on 07 3226 1800 or send us a message.
Located in Brisbane, we’ll take your business to the next level!