The pros and cons of outsourcing payroll vs processing in house

Whether you decide to process your payroll in house or to outsource it, there will be some things that you need to consider before making a decision.

We have broken these down below.

1) Time

Processing payroll and making payments takes up your time each month/week. An expert will be able to not only take this burden away from you but will also have the tools to process in a more efficient way

2) Cost

1. Hiring payroll personnel can be expensive and it is usually much cheaper to outsource
2. Removes the need for ongoing, expensive training
3. Outsourcing also removes the need for expensive software
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3) Security

When outsourcing you need to make sure that data is protected and secure. You can manage this by finding a bureau that prioritizes and invests in the security of your data so you can be assured that your data is safe.

4) Accuracy and expertise

It is important that mistakes are avoided as this can lead to unhappy employees or expensive fines.

If you have a team of experts in house who have the time to keep up with legislation then you should be able to manage this.

Payroll bureaus will always be trained and up to date with the latest legislation and will have invested in tools to ensure accuracy is maintained.

5) Control

Although a good bureau will work with you to devise a plan for your payroll that suits your business needs and will offer some degree of flexibility, you may not have the same level of flexibility you would if you processed it in house. Whether or not you need that flexibility will be determined by the nature of your payroll.  

6) Cover

Absences that mean your payroll cannot be processed on time, and wages can’t be paid on time, can spell disaster for your relationship with your employees. If you have a team of payroll professionals within your company, this shouldn’t be a problem. However, if you don’t you may need to hire additional, qualified staff to cover absences which can be expensive.

A payroll bureau with a team will always ensure that your payroll is processed by someone who is qualified to do so.