payroll outsourcing

4 ADVANTAGES OF OUTSOURCING PAYROLL SERVICES

Outsourcing strategies are reshaping the industry and affecting both providers and clients, as shown in Deloitte’s 2020 Global Outsourcing Report. Outsourcing trends also indicate a renewed focus on risk management.

Payroll outsourcing is the most commonly sought-after risk management tool. So, what is payroll outsourcing? Why should it be considered? What kind of service provider should I choose? This article points out the key concepts and provides our insight.

4 Advantages of Outsourcing Payroll Services

Reducing Time and Costs

Maintaining a payroll department is not only time-consuming, but it can also be a waste of resources as well. Processing payroll in-house involves providing the software and hardware for payroll, relative training, and up-to-date tax rule information. What’s more, when calculating the cost of labor hours for payroll operations (calculating payroll, printing, signing, distributing, training, researching regulations, new hire reporting, generating reports for accounting use) and comparing these costs with the plans provided by payroll professionals, payroll outsourcing services are generally cheaper.

Enhancing Security

Payroll processing can be a complex and risky business practice. Regardless of the integrity of your employees, there is always the risk of identity theft, embezzlement, and the potential hacking of company payroll software. Consider whether you have the time necessary to closely supervise and evaluate the company’s payroll operations for time & rate abuses, ethical concerns, or mistakes. Payroll solutions utilize technology that ensures the safety of sensitive payroll information, identifies fraudulent activity, and provides data backups in several server locations to prevent data loss. These types of security remove the unnecessary burden of in-house payroll operations and provide the peace of mind necessary to focus on what is best for the company.

Accessing Experts

Most business owners and payroll operations-related staff don’t have time to research and study constantly changing regulations, withholding rates, and government forms. By outsourcing payroll, a small business can take advantage of expertise previously available only to big companies.  This instant access to years of experience can be vital if you work in multiple jurisdictions and need an expert familiar with all local rules and regulations. They will make the most of the technology and the human knowledge available to those who have spent years working locally or internationally to help you grow in the strongest possible way.

As a bonus, most payroll outsourcing providers will also offer other essential services to aid your growth like PEO or EOR services, recruitment, invoicing, or company incorporation services. By establishing a relationship with one local partner, you can access every HR service you need to succeed.

Maintaining Compliance

Payroll regulations may regularly change at multiple levels, something which can be convoluted and unnecessarily complex. Payroll specialists are constantly informed of these changes and understand how these changes can affect your business in intricate detail. Having a simple discussion with these specialists can make the difference between compliance and non-compliance and reduce the complexity of these processes. A payroll outsourcing provider like INS Global is a key ally in ensuring that you and your business are kept up-to-date on all of these changes.

Should I Outsource Payroll?

There are indeed potential disadvantages in outsourcing payroll, such as a sense of loss of control. However, these potential problems can be overcome by understanding the service provider’s level of available customer support. In the end, whether to outsource payroll or not falls on weighing the pros and cons and finding the right partner.

No matter whether you are a small business, a growing business, or a company seeking international expansion, if you place a high value on time and are looking to reduce costs as well as risk, outsourcing payroll can be a good choice for you.

Comments are closed, but trackbacks and pingbacks are open.