Payroll Administration is a repetitive back-office function in any organisation employing people. Whether you are a small company or a large organisation, payroll is a standard overhead cost. The question is, is it costing your more time and money that it should?
We are hearing more and more about companies outsourcing various tasks to companies such as IT, Cleaning & Security, Human Resources, and even some aspects of sales.
Another trending service for companies seeking to save money and become more efficient is payroll.
Time spent on payroll – a cost or a benefit?
Although payroll is not a task that adds value to a business, it is one that has to be done. Because it’s a necessary task, the time it takes to manage it can often be underestimated.
Aside from the hourly rate of the person processing, one should consider the additional less obvious costs such as Employers PRSI, holiday leave, sick leave, and other employment costs such as insurance, IT resources, Data protection, backup and storage. Then there’s the costs of training a replacement or additional person to process or manage the payroll during any periods of leave, planned and unplanned.
The payroll software support, maintenance, IT resources and on-going updates and training further increase these costs. Add in stationery and additional resources at year end and you will see that the costs of processing in-house are quite a bit more than originally expected. And if that’s not enough, just consider what revenue generating activities could be accomplished during the time it takes to manage payroll.
Studies have found that almost every company can save by outsourcing their payroll requirements to a professional payroll outsource company.
Although you may have reliable payroll staff or have been managing payroll for years – tax laws and payroll regulations change frequently. It is a time consuming task to stay on top of changes on a regular basis. Late submissions and calculation errors can incur significant fees, interest and penalties. For employers who have employees in Ireland or and the UK, it can be more difficult as tax laws vary from country to country.
Utilising a specialist company to process ensures your payroll will be processed correctly and on-time while regardless of the differences in legislation and calculation details.
Give yourself and your company peace of mind and consider outsourcing your payroll. Contact us today for a consultation to see how your organisation can benefit from outsourcing your payroll.