Key Reasons Why You Should Outsource Your Payroll

Several business owners or managers cite payroll as one of their favorite tasks; For them, it’s a tedious routine to be performed every week or month, one with tremendous and challenging potential for employee annoyance, and surrounded by ever-changing state laws. There are specialists in payroll outsourcing companies that can take all those headaches away from entrepreneurs and managers. But when does payroll outsourcing make sense? Here are the top reasons companies turn to payroll outsourcing companies;


For many small businesses, payroll departments aren’t worth the extra work. If you have fewer than 50 employees, there’s a good chance outsourcing will be cheaper than hiring a specialist. Don’t forget to include expenses related to internal payroll, such as: Salaries, software and training. With prices as low as £35.00 per month, payroll outsourcing companies tend to be cheaper than the domestic option. The cost of an internal salary can be higher than you think!


Wage labor is a time-consuming activity. By outsourcing your payroll, you and your employees have time to focus on more important business activities.


Payroll errors can be painful and irritate employees and, worse, the government. Outsourcing to an ISO: 9001 payroll service provider reduces the potential for error compared to in-house staff.


Internal payroll accounting works just as reliably as the people who do the work. With a single point of contact provided by a fully managed payroll service, output speed and quality doesn’t change based on vacation and sickness. You also don’t have to spend time helping new payroll employees understand your operational payroll software system.


It can be time consuming to research and review frequent changes in wage legislation. If you keep your payroll account internally, it is your responsibility to check that it is legally compliant. If you outsource your payroll account, the responsibility for enforcement lies with the payroll company.

Privacy / Security

Make sure the payroll outsourcing company you use is designed to only receive payroll instructions from your organization’s designated contacts.

Don’t Worry

There is a lot to be said for the peace of mind that outsourcing can bring to a business owner or manager. No headaches, no hassles: you’ve lost focus on running a profitable business.

Of course, a payroll outsourcing company is designed to work in harmony with your business. You should run your payroll the way you want it, not a “one size fits all” attitude. It is very helpful if you can develop a good relationship with your account manager at a payroll outsourcing company to have a point of contact for support.

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