Outsourced Payroll

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Companies often experience difficulty in achieving a consistent and reliable payroll function for their domestic operations or across multiple countries. Working with an experienced outsourcing provider can change that.

Our team of outsourcing payroll specialists work with a broad range of businesses in Australia and overseas, attending to the reporting and compliance requirements of all stakeholders.

How BDO can help

We work alongside your finance and human resources teams to:

  • Calculate payroll, including employee expense claims
  • Implement processes for the authorisation of leave and expense claims
  • Establish payroll records for new employees
  • Provide advice for request of funds for relevant payroll
  • Provide details of payments and full reconciliations on a monthly basis
  • Ensure your business is SuperStream and Single Touch Payroll compliant
  • Prepare activity statements
  • Prepare payroll tax returns
  • Prepare workcover renewal notices
  • Deliver salary packaging and remuneration services
  • Provide global expatriate and mobility services
  • Offer immigration services
  • Provide human resources (HR) consulting.

To reap the benefits of a reliable and efficient payroll function, contact our team.

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Why should you outsource your payroll?

Ensure payroll compliance

Compliance should be a focus for all businesses, and this should extend to the payroll function. An understanding of the compliance obligations required of the business is the first step. Without understanding what you need to comply with, your business cannot be confident that it has all the checks and balances in place to ensure employees are paid correctly. 

While organisations generally have good intentions with relation to paying employee entitlements, the day-to-day conflicting workload priorities, complex pay instruments and intricate payroll software systems can be overwhelming, resulting in payroll non-compliance. Regular reviews of the payroll function can give organisations the confidence and road map to compliance.

Reduce potential reputational damage

The potential costs of managing payroll in-house go well beyond the financial outlay, particularly when you take into account the complexities of legislative changes and the subsequent opportunity for error. For many businesses, managing the reputational risk of payroll has become equally as important as ensuring staff are paid on time.

Numerous high-profile cases have highlighted how easy it is for well-intentioned employers to be caught out in cases of wage theft. In many cases, honest mistakes from businesses trying to navigate the complex payroll compliance environment have resulted in unhappy staff, bad publicity and financial disaster.

Our payroll advisory team can support a program of work to resolve uncovered issues and enable you to do the right thing by your employees, while reducing the risk of penalties and reputational damage.

Reduce payroll cost and increase efficiency

Most Australian businesses are grossly underestimating the cost of managing their own payroll, meaning they could potentially access significant savings by using an outsourced payroll provider. According to Australian Payroll Association (APA) data, the national average cost of payroll to a business - taking into account all payroll-related costs - is around $125.29 per payslip. 

Further, in a 2024 survey, APA found that an average of 11.9 hours a week is spent on manual payroll related tasks. Outsourcing payroll helps you save time, and allows business owners, management, HR and finance personnel to dedicate their time to more strategic, value-adding tasks.

Outsourcing your payroll function may work out to be far more cost effective than you think. In fact, when compared with the national average, our clients to find they cut the cost of their payroll by more than 66 per cent.

How real businesses can save time and money by outsourcing their payroll

Let's consider a common case for payroll outsourcing; Business A is in the manufacturing sector with a workforce of 40 employees, paid on a monthly basis. The average cost per payslip for a business of this size and sector is $204.82, which is $8,192.80 per pay run - almost $100,000 per year.

By outsourcing their payroll to BDO, Business A may be able to reduce this cost by as much as 75 per cent per payslip.

Contact us

Contact our team to discuss your needs using the request for service form.
Alternatively, call 1300 138 991 to speak with an adviser in your nearest BDO office.

Meet our team

A photo of Mark Pizzacalla looking straight ahead with a view of Sydney in the background

Dr. Mark Pizzacalla

National Leader, BDO Connect
Partner, Business Services
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