Outsourcing Payroll Management

Does your Orange City business manage its own payroll process? It’s not uncommon for companies to try and consolidate this work with an internal team. But it’s an idea that has several drawbacks, with outsourced payroll simply bringing more benefits to the table.

Don’t believe us? Let’s take a closer look at three reasons why outsourcing payroll management can do awesome things for your business.

1. Cut The Costs Of In-House Payroll

Having a specialist team working from their own office within your office comes with its own expenses. In-house payroll services can actually be considerably expensive, with full salaries and benefits coming along with each member of your team. Then, there are the unexpected labor costs, from staffing and onboarding to retention and the extra resources they use by just being at work, day-after-day.

For small-to-moderately sized businesses, the benefits of an outsourced payroll team are plain to see. Weigh up the cost of employing a fulltime team with the cost of an outsourced payroll service. In the longterm, offsite work does a lot to offset these costs, making it a great resource for keeping your budget trim.

2. Avoiding Expensive Payroll Software

We live in a time where online applications can do literally anything. Yet, for some reason, personal payroll software is still incredibly expensive, even for all of its benefits. Doing your payroll in-house means you’ll need to purchase and update your software if you want reliable results. Not only that, but you’ll need to train your staff in the use of this software so it doesn’t go to waste.

In contrast, payroll services are much simpler. Using a professional service, all you need to do is stay subscribed from month-to-month. No maintenance fees or unexpected updates. Just the service you need at a consistent price. Having the services of a payroll team doesn’t have to mean high costs, training, and maintenance.

Keep in mind, this upkeep isn’t just convenient – it’s a matter of compliance, and could get you into legal trouble if you aren’t up-to-date. If you complete your own payroll work, there are very serious risks of errors and penalties. None of which is your problem if you’re outsourcing your work to a professional.

3. You Might Be Overpaying Your Employees

It might not sound likely for you, but most businesses have been shown to overpay their employees by about as much as 4%. More often than not, this comes down to issues in the payroll department, which can be compounded when that department is working onsite.

Outsourced payroll operations tend to use more accurate attendance records to carry out their payments. Onsite payroll reps might take an employee at their word that they got in at 8 AM, or use a clock-in system with no verification. When you go outsourced, the best way for your payroll department to do their job accurately is to use a no-nonsense timekeeping system. Online or system-based clock-in systems show exactly when an employee got to work. And that’s how much they get paid.

What’s nice about this approach is that it also takes some of the responsibility off of your hands. The payroll system is locked in and, if your employees want accurate, fair compensation for their work, they’ll have to pull their weight and clock in and out, on time, every day.