Why choose to outsource payroll?
Processing your payroll in-house requires expertise, physical space for personnel and equipment and investment in technology. It will require recruiting specialist staff or taking someone out of another area of the business. Let’s be honest, unless it is your chosen profession, payroll tasks are often repetitious and boring. Smaller firms risk draining their employees’ enthusiasm by involving them with payroll.
Many small to medium-sized businesses and indeed some large businesses too, decide they would prefer the reassurance and convenience of having a third-party handle their payroll for them. Here are some of the benefits of using an outsourced payroll service:
- Minimal up-front investment.
- Reduction in overheads associated with specialist staff and dedicated space.
- Flexibility to cope with peak periods in your business.
- You don’t have to worry about key staff being absent or leaving.
- You don’t have to invest in ongoing training or be concerned with keeping up-to-date with payroll legislation.
- If an inaccuracy does occur, there is a clear channel for claiming reimbursement – you won’t have this option in-house.
- You are entitled to move to a new provider if you are dissatisfied – a lot easier than dismissing or retraining your own unproductive staff.
- Employee fraud is not an area you like to think about when you are running a business, but the sad truth is that you are at risk of various dishonest activities if you manage your own payroll department. Whereas, committed payroll providers have technologies that track payroll processes and will alert you if suspicious activity is uncovered or suspected.