If you manage payroll within your company or are familiar with the process that lies behind handing a cheque out on a regular basis then you are well aware that processing payroll is also ensuring that you maintain accurate records manage and calculate payroll taxes and communicate updates and changes effectively to your employees.
Outsourcing payroll can be a difficult task for some organiations as they want to keep as much of their business processes in-house. Those who have outsourced payroll to an external payroll management company have found that it in fact does save you money.
Primarily the cost savings revolves around the amount of time a company can save by outsourcing payroll to an outsourced payroll company. Some of the activities that are then managed by the experts are:
- Processing Payroll
- Generating and distributing chques
- Calculating and paying employment taxes
- Handling payroll enquiries
The most common factor forgotten by management is the consideration of time and resources spent on managing payroll, paperwork, training, and filing.
In order to calculate the cost of payroll within your organisation and whether outsourcing payroll could benefit your business, consider the following questions:
- How much of the time spent on payroll and what is the cost of those hours? This is can be tricky as you need to consider any person who has some responsibility doing payroll and the consideration of what they could be doing if they were not managing this process.
- If an outsource payroll company were to manage payroll, what are the possibilities of staff reallocation towards the business and revenue generating activities?
Download our informative guide on why payroll is the number one function outsourced by financial executives.