10 Reasons For Outsourcing Payroll

 11 Sep 2018

Getting slowed down by having to complete your payroll when you should be working on your business? As a business owner, you may be under the assumption that all your processes are cheaper and more effective if kept in-house. However, you might be surprised by the reasons supporting outsourcing and how your business could benefit.

1. Experience

If you use different types of employment, this can lead to some complicated payroll scenarios or structures. It does pay to have an extensive experience at your disposal which is something you are not likely to have in a small in-house payroll department. A good payroll service provider knows everything about payroll tax laws and the latest government legislation. They will be able to simplify your process and ensure the correct payments are made to all your employees in the complex structure.

2. Reliability

When keeping payroll in-house, it’s effectiveness is dependent on the employee completing the task. Alternatively, outsourcing payroll providers can ensure consistent speed and quality regardless of holidays or sickness. Furthermore, how much do you rely on one employee who could leave with all their knowledge? If this were to happen to you, you could find it extremely difficult to find a replacement, causing logistical mayhem on payday. Whereas, if you’ve been outsourcing your payroll you won’t have to spend time training new staff members or helping them understand your business’s payroll system.

3. Worry Free 

There are many things to be said for the peace of mind that outsourcing payroll services can provide to a business owner or manager. No stress, no hassle, no headaches, no worries. You are left to focus on managing your own business and have the peace of mind knowing your payroll obligations are being dealt with correctly, lawfully and efficiently.

4. Cost

Maintaining a big payroll department is an easy task for big businesses. However, small businesses having an in-house payroll service can be a money burner. If you were to calculate the hours your employees spend on their payroll related tasks, plus the software costs, training, printing, distributing and creating tax documents, you could honestly be shocked by the result when you compare to the cost of a payroll service provider. 

5. Training

We know it is expensive to recruit and employ staff members that have the proper training to handle your payroll system. For smaller companies where the payroll is not quite enough to justify a full-time employee, you will have to use your current staff to be trained in payroll as an additional task and undertake the responsibility besides their core role. They will also need to keep up to date with the latest tax legislation and procedures. Every professional payroll provider will have a full team of qualified employees who will be able to ensure you can focus on more important things instead of training a new employee.

6. Security

Do you still have the energy and the time to be supervising all of your business’s payroll? When keeping the responsibility in-house, you entrust a member of staff to professionally complete the task, but you’ve still got the obligation to ensure they are abiding by the legislation. Most payroll service providers come with technology that will spot and alert you to any type of payroll frauds, such as the payment manipulation and the famous phantom workers. 

7. Accuracy

When you make a mistake with your payroll,  it can become a nightmare to resolve. We all make mistakes and they will happen but minimising the risk or opportunity for any mistakes occurring is a sensible decision. So why not look for a professional who can promise high accuracy? A proper and correct payroll service provider is far less likely to make a mistake and commit a serious error than your in-house staff members, as you are paying them for their experience, checking procedures and knowledge.

8. Speed

We’ve all had a time when something needs completing at the last minute before payroll cut off. When a deadline is imminent, speed is vital. If you’ve decided outsourcing your payroll is the correct decision, you’ll have a dedicated account manager who will be able to complete last-minute tasks at high speed. Providing you with a quick turnaround and the service you’d expect from professional providers, meaning you can focus on growing your business. 

9. Resources

It is no secret to anyone that a payroll function will consume a significant proportion of your staff's resources, more specifically if the team is not adequately trained to deal with it or have the payroll function as a smaller part of their overall responsibilities. Whereas, the benefits of outsourcing your payroll include freeing up these resources to allow your staff to focus on and proceed with their more essential tasks. Outsourcing functions give you a better scope for the expansion of your company reaching for goals with scalable services uniquely suited for you and your business.  

10. Flexibility

Many payroll correspondents will offer small and medium-sized business deals in which all of your payroll necessities and requirements will be met. Outsourcing solutions, also tailor their packages to meet your business model specification so you won't end up paying for something that will include services you do not need or worse, miss key features that you do need.