Why Outsourcing Payroll Services Makes Sense

Business owners often waste quite a bit of time and energy handling activities that they could just as easily outsource, including payroll services. When you have the head of the company (or some other skilled person) working on something that doesn’t bring in a profit, it doesn’t help to add anything to your bottom line. If you can do it, outsourcing payroll services not only helps to free up resources, it ensures that there won’t be mistakes or anything that goes against the law.

Why then are so many people hesitant to outsource their payroll services? It is because they don’t see the potential in doing it and rationalize it as something they don’t have time to do. Is it worth all of that extra time and effort in the short term just to find someone that you feel comfortable working with in that way? Someone who can get an inside look at your company’s financials? Someone who won’t tell your secrets to their friends in the same niche?

In our opinion, it is well worth it.

Outsourcing payroll services helps with three main goals:

  1. It frees up resources at the highest levels;
  2. It ensures payroll is performed correctly;
  3. It reduces risks and mistakes.

Outsourcing Payroll Frees Up Resources At The Highest Levels

Payroll is a necessary function of any healthy business. However, if it isn’t handled properly, it can put your business into the trouble zone. Payroll zaps away the attention, energy, and time from core activities that have a more significant impact on your business. Companies have to pay attention to various complex laws when it comes to employees at the federal and local levels. In South Africa, for example, these laws and regulations can change with little notice. 

Of course, taxes are just the start of what you need to do – even though they should be one of your biggest concerns. If you get taxes wrong, you may put your employees and your company in danger. There is more that you have to concern yourself with: new-hire reporting requirements, government requirements around unemployment compensation, and workers compensation insurance.

It Ensures Payroll Is Performed Correctly

One of the biggest reasons to outsource payroll services is because you will get access to experts who know the laws and regulations and who have the technology to keep everything on track. For a small business or even a medium-sized one, it can be difficult to invest in these programs and tools that can be quite expensive.

Employees expect things like direct deposit and self-service access to their payroll information – this is no longer something that is considered a perk. If you cannot offer it to them, you are doing your employees a disservice and perhaps even limiting the client pool for open jobs.

Payroll Services Reduce Risks and Mistakes

Outsourcing payroll can also reduce risks for the business. Mistakes are far more common than one might expect, and companies are losing money quickly. These losses may be because of bookkeeping errors, discrepancies in timesheets, and even in pay rates. Of course, there are also risks to making mistakes – legal risks and reputation risks.

Making these “silly mistakes” can be extremely harmful in ways that most people don’t even realize. One mistake can cause you to miss out on good employees and even cause the general public to have a negative opinion of your business.

There are many places where you can make mistakes and use it as a learning experience, but payroll is one place that you don’t want to do that – one mistake could be the end.

Outsourcing Payroll Administration in Johannesburg

If you are interested in outsourcing your payroll services with a company that you can trust, look no further than IC Quantum. Our team of accounting experts uses the latest tools and technology to stay on top of your payroll and ensure that your books are accurate.

Payroll administration is just one facet of our business services, which include auditing, business planning, taxation, and more. Are you ready to get started? Call us at +27 87 980 0000 or send an email to info@icq.africa to get more information.

What are the Best Ways to Pass Assets to Your Children?

If you are looking to pass your assets to your children, there are some excellent ways to start planning right now so that you can ensure your children won’t have any problems when you are gone. Even better, you can ensure that the assets you pass on are used properly and to your liking, if that is important to you. While everyone wants to live until their children are old enough and mature enough to responsibly handle their money, that isn’t always the case. Sometimes, estate planning means helping children grow up and get established.

The truth is that there isn’t a “one size fits all” solution to passing assets on to your children. Some people choose to establish trusts, whereas others just give more substantial sums of money or expensive items away now. 

The answers to these questions depend on a variety of factors that you may want to consider. It can include whether you are married, how old your children are, the value of your estate, and whether or not you want to control how your assets will be used.

Regardless, what are the best ways to pass your assets to your children? Here are some of the best options:

Give Financial Gifts While You’re Living

If you talk to your accountant and you have enough money to live out the rest of your life and can still give financial gifts while you are living, you may want to consider it. Not only will it help them to save a bit of money on taxes, but it also allows you to see your money being used and enjoyed by your children. This is a luxury denied to many, and if possible, it is something to consider. 

In particular, it is certainly something to consider for those who do not expect to use up their own money. You will want to do some planning and ensure that you have more than enough funds left over in case something goes wrong with your home, health, or business. Keep in mind that there are rules and regulations about giving financial gifts.  You can only give a certain amount of money before it does have to be taxed.

Put The Money Into Trusts

A trust is a fund that is managed by a trustee for the benefit of a particular beneficiary. The most common trust is established for children who have parents that pass away before they turn 18. These trusts are then used to pay for a child’s expenses until they turn 18, at which time they will gain control. You can also establish some other precedent for which the child will gain full control of their money, such as graduating college or reaching a certain age.

Trusts can be extremely beneficial if you want to manage tax implications and if you have a large estate. They can also be established for a loved one who has a disability. These trusts require care and consideration so that they do not interfere with or compromise governmental assistance. 

Talk To An Estate Planning Professional

Many people aren’t comfortable talking to an estate planning professional because they think it is a somber occasion that means they are near the end of their lives. However, for anyone that has a business, children, or loved ones that care about them, estate planning is necessary. You will be able to save the people in your life a lot of stress and confusion after you have passed. In fact, you may be able to quell fights that so often break up families and businesses.

It is never too early to start estate planning, even if you don’t have a great deal of money in your savings. Make sure you work with a professional that has your best interests in mind and can work with you to not only protect you while you are alive but to help preserve your legacy once you have passed.

To get started, schedule an appointment today.