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Contractor Management

Is your business ready for an outsourced payroll department?

By 28 October 2020No Comments

With the shift in the employment ecosystem, more companies will be looking to have a flexible workforce.

Part of the flexibility will mean, employees will be made up of contractors/freelancers, who may have worked for the company previously, and are now ready to return as contractor/freelancer rather than full employees…

With this shift, comes the added compliance and time associated with running contractors or freelancers!

Contractor payroll is one of those essential business processes that can add zero additional value to your business. In fact, there are only two outcomes you can have from running your own contractor payroll; ‘Neutral’, when people get paid what they expect to be paid and ‘Bad’ when they don’t…

With all the paperwork, compliance, pressure and risks involved; if things go wrong with in-house contractor payroll, it can be a real pain for your payroll, HR department or you…

How is it cost-efficient for your company?

If you are looking to run your contractor payroll in-house, then you will have to employ an individual with several years of experience, who is highly skilled and understands the compliance within the payroll contractor/freelancer world. This could cost you between $30,000 to $90,000 per year.

Or alternatively, you could outsource it to a third-party service provider like Pendragon. In this case, our service fee is 2.5% of the contractor’s earnings, e.g. $100,000 per year would cost $2,500 per year; $208 per month to run. This service fee is inclusive of all workers insurances, ATO compliance and an end of the year tax return for individuals.

And the best bit, Pendragon would be taking the stress off your company shoulders allowing you to focus on areas that could add value to your business and boost productivity.

To discuss more about outsourcing your contractor’s payroll, please don’t hesitate to contact us on 02 9407 8700 or reach us at [email protected]

Purnima Kabra