Continuity planning is a process that defines the steps and procedures that are used to ensure that critical business functions operate with minimal disruption whenever a situation arises that could threaten that delivery.
When it comes to payroll, there are many risks that could emerge and affect the delivery of this service, such as a pandemic. Paying your employees accurately, and on time is an integral part of the business function. A delay in an employee’s pay could have negative consequences such as employee disengagement, an employee seeking employment elsewhere, penalties for late payments, and brand damage.
A Payroll Continuity Plan allows employers to identify any risks to the function of payroll within their organisation, and ensure that there are risk management practices in place, along with strategic development, readiness, and ongoing quality assurance.
What Does an Effective Payroll Continuity Plan look like?
Identifying the Stakeholders in your Organisation
This not only includes management and employees; but also roles that may have a direct impact on the payroll process, such as HR managers responsible for approving timesheets and leave, right through to finance payment approval and journal.
Conducting Risk Assessment and Management
By identifying internal and external risks to the function of payroll within a company, a contingency plan can be developed to avoid or manage the potential repercussions of the risk.
Establish Strategic Development
Establish strategic development to ensure resources that contribute to the payroll process are utilised efficiently and effectively across the business.
Exercise Readiness
Exercise readiness to ensure your team has clear goals and responsibilities, and ensure they are trained for the task they perform.
Assess Quality Assurance
Assess quality assurance through a framework of actively identifying areas that can be improved through ongoing training and adjusting internal processes.
How can an Outsourced Payroll Provider Help Provide A Payroll Contingency Plan for Your Business?
Stakeholders
Your outsourced payroll team is responsible for:
- Processing end to end payroll
- Providing payroll advice and support.
- Submitting information to the Australian Taxation Office via Single Touch Payroll
- Processing superannuation
- Providing payroll reports to client stakeholders
Your Payroll Team is structured/trained in a way that addresses all the above key elements of a Payroll Continuity Plan.
Risk Assessment and Management
Through outsourcing your payroll, you are provided with a dedicated Payroll Business Partner who will become familiar with your business needs in the function of payroll.
Payroll Business Partners are supported by a Team Leader or Portfolio Manager, who acts as an initial escalation point should there be a requirement for risk management.
Risk assessment and management are handled primarily by the Portfolio Managers who oversee the day-to-day operations of the payroll teams.
Strategic Development
Throughout the calendar year, there are key events that take place that may affect the payroll function. These can include:
- Changes to payroll legislation
- End of Financial Year processing
- The Fringe Benefit Tax (FBT) Year
- Minimum wage reviews as directed by Fair Work
By preparing ahead, you can ensure that the resources best allocated to these tasks without a negative impact on the regular processing of payroll.
Readiness
Although your business may have it’s own intricacies when it comes to payroll, payroll processes and procedures are streamlined and documented for internal use. This means that, if your regular payroll business partner is on leave there are no changes to the process on your end.
Your payroll team is provided with professional training on an annual basis, which is available to all employees irrespective of their level of experience or knowledge. This ensures that you can be confident that payroll is processed by a team that has the knowledge and support to provide you with seamless and compliant payroll.
Quality Assurance
In payroll, compliance is a critical aspect of quality management and assurance. This is managed through HR and payroll advisors who are supported by in-house workplace lawyers. Payroll Partners stay up to date with payroll news, developments to payroll legislation, and systems trends so you can have confidence in the team handling your payroll.
Additionally, payroll software used provides automation of the flow of data from employees across rosters, timesheets, leave management, award interpretation, and reporting. For example; Employment Innovation’s Payroll software provider is KeyPay, which is one of the top 3 payroll software providers for small to medium-sized businesses. KeyPay is a cloud-based workforce management and payroll platform.
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About Employment Innovations
Employment Innovations is one of Australia’s leading providers of employment services designed to increase productivity and ensure compliance. Its services and solutions include all the tools that every Australian small to medium-sized employer needs – including workplace advice, legal services, payroll solutions, migration, human resource management and HR software.
Equipped with a payroll team with over 200 years of combined experience in the professional payroll industry, Employment Innovations currently manages the payroll function for over 650 customers.
Are you interested in hearing more about Employment Innovations payroll services and how can we assist with payroll continuity? Get in touch with us today.
Disclaimer
The information provided in these blog articles is general in nature and is not intended to substitute for professional advice. If you are unsure about how this information applies to your specific situation we recommend you contact Employment Innovations for advice.