Monday 15 May - Creating Confidence In How People Are Paid
Report: More payroll staff prepared to walk
Employee burnout and a lack of leadership are creating chaos in the payroll industry, with more staff preparing to leave their post in the next 12 months.
An extensive survey of 2,178 payroll professionals by the Australian Payroll Association found that 31.2 per cent of respondents plan to change jobs in the next 12 months.
Payroll professionals in large companies (over 500 employees) fare the worst, with 28 per cent saying they expect to quit in the next year. This was followed by 26 per cent of respondents who work in medium-sized companies (51-500 employees) and 19 per cent who work in small companies (under 50 employees).
The turnover is set to risk higher rates of non-compliance in employee payments across corporate Australia. In the financial year 2022, the Fair Work Ombudsman recovered more than $530 billion in unpaid wages and entitlements for nearly 400,000 employees — a figure three times higher than reported in FY 2021.
“One of the key challenges facing organisations today is the difficulty in recruiting and retaining payroll talent,” said Tracy Angwin, chief executive of the Australian Payroll Association.
“As the demand for skilled payroll professionals continues to increase, it has become imperative for organisations to not only attract but also retain the right talent.”
What’s driving departures in the payroll industry?
The survey highlighted a number of key reasons why more payroll professionals are willing to quit their jobs — the most common cited as increased burnout.
Two in five payroll professionals are suffering from burnout, with this most prevalent in large companies (46 per cent). Meanwhile, 35 per cent of payroll professionals in medium-sized companies are experiencing burnout, compared with 28 per cent of those who work in small companies.
When asked what factors contributed to their burnout, 48.5 per cent cited a lack of leadership support and understanding of payroll.
“Perhaps the most alarming thing we see is the trend of senior management not understanding the payroll structure required to ensure a well-governed, compliant and efficient payroll,” Ms Angwin said.
“The number of senior company executives quietly admitting to us that they have no idea what is going on in their company’s payroll function is astounding.
“With the increasing wage theft laws coming in and liabilities on executives and company directors, employers cannot just hope that their payroll people get it right, and without any oversight. We find errors in 100 per cent of our payroll audits.”
Further contributing to the feeling of burnout is a lack of payroll resources, cited by 39.8 per cent of respondents. Similarly, 38.7 per cent of respondents cited a lack of investment in the payroll function, and 36.2 per cent said unrealistic deadlines and expectations were increasing their level of burnout.
The survey also identified significantly increased workload levels among payroll professionals.
Fifty-six per cent of respondents said their workload had increased since the pandemic, with almost two-thirds of these (61 per cent) now working more than 40 hours a week.
Ms Angwin said increased work levels are not being adequately addressed by employers, who are failing to keep up with rising turnover rates.
“[We’ve seen] anecdotal evidence of employers not replacing people when they leave,” she said.
“In terms of how to retain payroll staff, we know that it’s not just about throwing money at them … It’s just as important, if not more, to make them feel supported and appreciated in the payroll function.”
When asked what was the most important in their search for a new role, 39.6 per cent of respondents cited efficient payroll technology and processes. Meanwhile, investment in learning and development was cited by 13.1 per cent of respondents.
To learn more about the research conducted by the Australian Payroll Association, access the full report here:?https://austpayroll.ac-page.com/2023-payroll-survey-download .
To contact the Australian Payroll Association or book their services, you can visit their website at?www.austpayroll.com.au ?or call them at?1300 729 455 .
Source: HR Leader
Australian Payroll Software & Service
The 2023 Australian Payroll Survey revealed that 38.5% of employers plan to review their payroll technology within the next 12 months. As a response to this need, we have developed the 2023 Payroll Software & Services Directory, which provides an in-depth analysis of some of the industry's most innovative suppliers, outlining their key features and functionalities.
Our aim in creating this directory is to provide a valuable resource that empowers employers to make informed decisions when commencing a reviewing of payroll suppliers.
We recognise that changing payroll suppliers can be a challenging process for businesses, which is why our directory has been designed to facilitate a smooth start to the process. By leveraging our comprehensive directory, businesses can identify and select the most suitable payroll solution for their needs, helping streamline their payroll processes, and increasing overall efficiency.
We encourage all employers to take advantage of this unique opportunity and to obtain their free copy of the 2023 Payroll Software Directory today -?CLICK HERE.
Podcast: Talking Payroll on The Switzer Show
In this special episode, Tracy Angwin is the one who gets interviewed.?Recently invited onto The Switzer Show with Peter Switzer and Paul Rickard, Tracy discusses overpayments, underpayments, superannuation and payroll fraud.
To listen - CLICK HERE.
Demand for Payroll Consultancy Services Is Growing In Australia
The demand for payroll consultancy services in Australia has grown significantly over the years, with businesses looking to streamline their operations and reduce the burden of managing complex payroll processes.
With the ever-changing business landscape and the complexities of payroll processing, more and more businesses in Australia are turning to payroll consultancy services to manage their payroll-related tasks.
These services are particularly valuable for small and medium-sized businesses that may not have the resources or expertise to manage payroll processing in-house.
According to recent industry reports, the demand for payroll consultancy services in Australia is expected to continue growing, with more businesses looking to outsource their payroll processing to third-party providers.
Reports also suggest that this trend is likely to be driven by the increasing complexity of payroll regulations, the need for greater accuracy and efficiency, and the desire to free up resources for core business operations.
In ADP’s?Global Payroll Survey 2022, 45% of the world’s payroll leaders say they have seen an increase in the amount of payroll data requested from senior management.
In fact, 45% of payroll leaders say their payroll staff are inundated with more queries than pre-2020, as reported in The potential of payroll: Global payroll survey 2022.?
In response to this growing demand, many payroll consultancy service providers in Australia are expanding their services to cater to the diverse needs of businesses.
These providers offer a range of services, including payroll processing, tax compliance, employee benefits management, and more..?
If you don’t hire a professionally sound payroll consultancy firm, your company’s payroll processing, filing of payroll taxes, generation of payroll tax statements, and overall calculation of payroll liabilities may go haywire.
Factors to Consider Before You Hire a Payroll Consultancy Expert?
Whatever the size of your business—small, micro, medium, or large—you require the professional services of payroll consultants and bookkeeping services.?
You should use the following parameters to judge the professional standard of the payroll consultancy firm before hiring:
Ascertain if the firm has the latest software: Bookkeeping, accountancy, and payroll management now requires the application of ultra-modern software.
In Australia and all other countries, manual bookkeeping and accountancy jobs have practically been replaced totally by software. So before hiring a payroll consultancy firm, examine if it has the latest software.
Clientele List:?This should be one of your guiding principles in selecting the right payroll consultant. A professional consultancy firm will have several well-known companies as clients. If you find it lacks a live list of well-known companies, avoiding hiring such a firm would be better.?
Capacity to Provide Online Payroll Services: A consultancy firm using sophisticated software and having an in-built online payroll service facility can do justice to your company.
Such a company will be able to manage your data efficiently and feed you back with regular inputs on various issues, including tax returns online. This online system will also help you to avoid duplication and double-check the facts.?
Background Study of the Company You Are Hiring: This is essential to study the company’s professional background. You shouldn’t hire a company that has just been formed. A payroll consultancy firm with a few years of experience handling the matter should always be your guiding principle.?
Staffing Pattern: Bookkeeping, accountancy, taxation, and payroll management are highly professional jobs. Those handling such issues should be professionally qualified and spend a few years doing the job.
If you hire a consultancy firm with novices or less-qualified staff members, they cannot do justice to the jobs with intricacies. Therefore, it is always advisable to check the professional qualifications of the staff members of a consultancy firm before finally hiring them for your job.?
You must select a payroll consultancy firm that is fully integrated, has no loose ends, and is streamlined professionally.
In Australia, you can choose leading payrole services provider?https://www.austpayroll.com.au ?for payroll and HR-related needs.
Australian Payroll Association has expertise in handling payroll-related matters besides filing tax returns, managing salary deductions, leave management, bonus payment calculations, and other complicated issues related to payroll management.?
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Demand for Payroll Consultancy Service Growing?
Many companies in Australia and several other countries outsource their payroll management jobs to different bookkeeping and accountancy firms. Payroll consultancy and management are likely to get a boost with the inclusion of AI in this segment.
As a result, the demand for outsourcing bookkeeping and payroll management to different firms will grow in the coming four years.?
Such firms hired will use these hands to create payrolls, process them for wage payment, update wage reports of companies, create statements of leave and salary deductions, create tax payment records and update them, and sundry other works.?
One thing that you must remember before hiring a consultancy firm is that payroll management is difficult as a company has different types of personnel or staff members. They can be permanent, part-time, working charged, and consultants.
Their salaries and other allowances also have to be calculated accordingly. A full-service payroll management firm knows that their tax deduction at source will also vary depending upon their nature of engagement with your company.?
With the growing demand for payroll consultancy services in Australia, businesses can now access expert advice and support to help them manage complex payroll-related tasks efficiently.
As the business landscape continues to evolve, it is clear that payroll consultancy services will play an increasingly critical role in helping businesses succeed.
Average Cost Per Payslip
The average cost per payslip takes into account the total payroll-related costs of responding organisations, and the number of payslips produced annually, which is determined by number of staff and payment frequency. Included in the total payroll-related costs are:
Salary costs
Payroll staff salaries and wages including superannuation, and bonuses if relevant
Technical costs
Other costs
Nationally, the average cost per payslip is $125.79, however this varies significantly based on factors such as organisational size, location and industry
Average payslip cost – by number of employees
Average cost per payslip– by industry
Outsourced vs In-House payroll – average cost of payslip
Question: What is the cost per payslip within your organisations?
Upcoming Payroll Training Events
June 2023
Payroll Tax Masterclass
Superannuation Masterclass
Long Service Leave Masterclass
Understanding Modern Awards
Terminations Masterclass
July 2023
Understanding Modern Awards
Payroll Essentials
Advanced Payroll
Payroll Tax Masterclass
Terminations Masterclass
Dedicated Western Australia - Payroll Training Events
We are excited to announce that Payroll Edge Consulting , in partnership with the Australian Payroll Association (APA), will be offering a series of APA certified payroll courses in Perth.
Our comprehensive payroll training courses are designed to ensure that your team is up to date with the latest developments in payroll and equipped to avoid costly errors. By enrolling in our certified APA training, delivered by experienced payroll experts with decades of industry experience, you will gain valuable insights and practical knowledge.
These courses go beyond preventing financial losses, penalties, and reputation damage. They also provide you with the skills necessary to effectively manage payroll, contributing to your business's financial stability and enhancing its reputation.
All courses will be conducted in person, offering a conducive learning environment. For more detailed information and to register, please click the link provided.
Did you know - PAYG withholding on terminations?
Did you know that if you have a non-genuine redundancy payment then the accrued leave entitlements will be taxed at marginal rates and not as Lump sum A?
Monday 22 May, 2023
Thanks for sharing! :)