Outsourcing payroll accounting in Vienna: Is it an excellent alternative to the entrepreneurs?
Preparing the Personalverrechnung Wien is a mandatory function under the law. To not fall into serious failures, it is essential to have professionals capable of strategically managing the document. A team of specialized accountants can reduce the error rate and carry out the task. In contrast, the HR team is dedicated to other activities, such as training and recruitment and selection. By outsourcing the support of an accounting team, the entrepreneur has more time and peace of mind to dedicate himself to other aspects of the business entirely.
What is Outsourcing?
With outsourcing, corporate tasks are transferred to external service providers. These tasks are primarily recurring and necessary tasks that can be completed without in-depth knowledge of company structures. These tasks include payroll accounting for your employees. For many small and medium-sized companies that operate their payroll accounting, the monthly payroll accounting usually represents a high effort. An alternative to keeping your payroll accounting efficient, timely and professional is to outsource payroll accounting. The process saves both time and money.
Outsource your specialist staff vs payroll
Personnel costs represent a significant item in your expenses. Accordingly, many entrepreneurs refrain from hiring specialist personnel for payroll accounting. Often the payroll accounting is done by the owner himself or by an employee. Usually, the employee does not always have sufficient specialist knowledge. However, there are some unique features to consider, especially when it comes to payroll accounting. If something is overlooked here, it can lead to high follow-up costs later.
Besides, this employee is not available for his core tasks when he/she has to deal with payroll accounting. Anyone hiring a specialist can assume that this employee is familiar with the complex subject of payroll accounting. Also, keep in mind that you are not very flexible with just one specialist. In the event of illness, vacation or a more prolonged absence, you have to provide a competent replacement. There are additional costs for hardware and software, maintenance and updates. The subject of payroll accounting and German tax laws are complex. If you want to outsource Personalverrechnung Wien, professional service providers can help you quickly and easily.
Professionalism, flexibility and transparent costs
As you can see, the subject of outsourcing payroll accounting is complex. Your employees want to be paid on time, and the tax office insists on correct billing. Outsourcing payroll accounting is an alternative to satisfying both parties. The advantages are –
- You will receive the desired wage and salary slips reliably and on time,
- In many cases, the service providers guarantee a processing time within 24 hours,
- You have a personal contact that is available if you have any questions,
- The operational processes are taken into account and not disrupted,
- You can rest assured that the payslips have been drawn up correctly,
- The evaluations are carried out according to your ideas, are clear and understandable,
- The data is secure and is checked and certified by the service providers’ applications,
- The service provider takes the current situation into account,
- You decide what support you need and can request it at short notice,
- In the event of failures, the service provider ensures competent representation,
- Outsourced tasks are not subject to collective bargaining agreements, and you save costs,
- A calculable fixed price for the payroll per employee is every day.
Consequences of incorrect payroll accounting
If errors occur in the payroll accounting, it leads you to various consequences, such as incorrect payments to the employee. Errors of this kind have to be corrected within three months, which is associated with some effort. For example, if the fees to the tax office are forgotten, there is a risk of fines/imprisonment if this happens three times in a row. If errors are discovered during tax audits, amounts have to be estimated, leading to significantly increased taxes and fines. For payroll accounting, five core tasks must be fulfilled — maintenance of personal master data, fulfilment of reporting requirements, maintain wage accounts, settlement of personnel costs, and prepare the statements.
The exemplary method for your company
For founders who are hiring employees for the first time, payroll accounting is automatically incurred. It is why wage accounts, reporting requirements and payslips are part of everyday business life. Since payroll accounting takes a lot of time and mistakes are often made, founders and small companies, in particular, should not do the payroll accounting themselves but rather hand it over to an experienced tax advisor/accountant. Since the prices are within reasonable limits, outsourcing is worth twice as much. In larger companies, payroll accounting is usually handled by appropriate software with which the payslips can be created. The relevant system must take into account the applicable case law. The advantage is that you can integrate payroll accounting into an ERP system.
Conclusion: yes, a good alternative!
Overall, outsourcing your Personalverrechnung Wien can be a professional and inexpensive alternative to in-house payroll accounting. You save personnel, training and acquisition costs and relieve your employees who would otherwise have to do payroll accounting in addition to their core tasks. Of course, the external service provider does not work for free, but these costs are easy to calculate for you and usually much cheaper than employing an in-office specialist. Remember, if not chosen correctly, your company may have serious consequences. Giving internal company data to third parties is always a risk. You have to make sure that your service provider can guarantee data protection regulations and security.
Also read — Outsourcing accounting and payroll services: Is it a good idea for you in 2021?
