Outsourcing HR’s payroll function can be a strategic advantage. It reduces overhead, saves time, and gives companies access to specialized expertise. But there’s a growing blind spot we’re seeing and it’s putting companies at risk: a lack of visibility over statutory payments and compliance.
The Problem
We recently worked with a company that had fully outsourced its payroll function. Everything appeared in order—a letter from the National Revenue Authority (NRA) citing several months of unpaid payroll taxes. Their HR provider had failed to file and remit payments. And because the company hadn’t been monitoring compliance directly, they were completely blindsided. This isn’t an isolated case. It’s a recurring and avoidable risk.
What Outsourcing Shouldn’t Mean
Let’s be clear: Outsourcing does not mean offloading legal liability. As the employer, you remain ultimately accountable for:
- PAYE (Pay As You Earn) is filed and paid on behalf of your employees
- NASSIT contributions are accurately submitted for both the employer and employee portions
- Withholding taxes are being accurately calculated and remitted
If these obligations payments are not met, it is YOU, not your HR consultant, who faces the regulatory consequences. The key is to stay in control, not by micromanaging your service provider, but by ensuring you have access and accountability.
HERE ARE TWO STEPS EVERY COMPANY SHOULD TAKE
Access the NRA ITAS Portal
Ensure you can log into the NRA’s Tax Administration System (ITAS) with your company credentials. This allows you to:
- See filed returns
- Verify amounts declared
- Confirm receipts of payment
If your HR consultant says you don’t need access, reconsider your arrangement.
Cross-Check Monthly Payroll Filings
Ask your HR service provider to give you:
- Monthly PAYE receipts
- NASSIT remittance receipts
- Withholding tax receipts
These reports should match what you see in the ITAS portal and on your payroll
Stay Outsourced, Stay Protected
Outsourcing remains a valuable tool—but only when paired with accountability and oversight.
At Gordon & Associates, we help businesses:
- Set up direct access and dashboards for compliance monitoring
- Conduct external HR and payroll quality reviews
- Develop customized checklists to ensure tax and payroll obligations are met
Let’s make outsourcing smarter—and safer.
📩 Reach out to schedule a review of your current HR and payroll structure. info@gordonassociates-sl.co
