<span id="hs_cos_wrapper_name" class="hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text" style="" data-hs-cos-general-type="meta_field" data-hs-cos-type="text" >7 Considerations When Outsourcing Payroll (Updated 2020)</span>

There comes a time when all business owners will consider whether they should keep processing payroll in-house or outsource it to the experts.


Payroll is a vital task for any business, which is why so many business owners choose to keep it in-house. Can you really trust another team with such an important part of your operations?


If you’re considering outsourcing as your business expands internationally, it’s worth thinking through this decision carefully. Outsourcing can be beneficial, particularly when you find the right provider for your needs.


Think about these seven factors, and you’ll have a better chance of finding the perfect partnership.


1. Workforce Variations and Peculiarities


If you only have a few employees, the process of paying them should be fairly straightforward. The more employees you have and more branch offices you operate, the more complex payroll likely is.


Your business may operate in two or three provinces, or even two or three countries. In addition, you could have a mix of employees, with some working part-time and others working full-time. Maybe you have some contractors, temporary workers, or even interns. Some employees might be paid salaries, while others are paid by the hour.


If you also offer bonuses and commissions, the situation becomes even more complex. Benefits also add to the challenges of payroll.


The long and short of it is that the more complex your payroll is, the higher the chances that outsourcing payroll will be the right call. Even if you have only a few employees, sending payroll to the experts could still save you time and money.


2. Data Protection


What software are you using to handle payroll? Where are you storing sensitive information, such as employees’ government identification numbers, addresses, and salary information?


This information is integral to payroll, but you must make sure you’re keeping it safe. Teaming up with the right payroll provider can offer you more peace of mind. With the right technology, they can offer better data protection to you and your employees.


3. Accuracy


If there is any function in your business that needs to be 100% accurate all the time, it’s payroll. Your employees expect it. Many of them will start looking for a new gig after just one or two errors on their paychecks.


You must be careful to ensure your payroll taxes are accurate. If they’re not, you could be facing penalties. These costs can add up for your business. A payroll provider can help you avoid making the errors in the first place.


4. Compliance


If you’re having trouble keeping up with changing legislation, understanding the complex laws you must follow or paying for noncompliance far too often, outsourcing payroll is a good idea. Let well-versed payroll experts ensure your payroll is compliant with all laws and regulations.


5. Accountability


In the event that mistakes occur, payroll is delayed, or laws are broken during the process of payroll, the error needs to be fixed quickly. This can represent an enormous burden for your in-house team. If they’re already struggling to keep up with payroll, going back and fixing mistakes could overwhelm them. In turn, you may find your business trapped in an endless cycle of fixing payroll errors.


Teaming up with a payroll provider could help you break the cycle.


6. Cost


Many business owners believe that outsourcing will cost more than processing payroll in-house.


For many businesses, though, outsourcing is the more economical choice. It can help you save on software, equipment, supplies, and even labour. It could even reduce penalties and fines, as well as help you reduce turnover for the business.


7. Time


For most businesses, payroll is a time-intensive function. If you feel like you’re constantly trying to keep up with pay period after pay period and have little time left over for your core business, it’s a sign that payroll outsourcing could be exactly what you need.