When to Outsource Company Payroll

Whether or not to outsource payroll can seem like an insurmountable question at first, but these simple points can help determine when hiring outside help makes sense.

Your company has less than 20 employees.

Not all companies are the same, but generally companies with less than 20 full-time employees will see significant savings in outsourcing their payroll instead of employing a dedicated staffer to handle it regularly.

Your taxes or other regular paperwork is complicated.

If your company works with unions or government entities, has unorthodox hours or pay schedules, or is subject to complex tax law, outsourcing your payroll and duties associated with it can assist in resolving you of liability and provide an extra layer of security.

You cannot afford to invest in both technology and employees.

Even the most talented on-staff payroll specialist cannot shine with outdated technology, and the best software cannot compensate completely for an inexperienced staff member. If you cannot afford both an experienced payroll specialist and the tools they need, outsourcing payroll can give you access to the best of both worlds: the latest technology with experienced people behind it.

You want to add extra power to your employee benefits.

Supplementary employee benefits can be found in unexpected places. Many payroll companies offer online options for employees to check and submit paid-time-off requests, update their information, and download individual tax documents, as well as added perks like reminding you of employee birthdays or important anniversaries. This provides a peace-of-mind that can be difficult to achieve with in-house payroll.

You need to streamline operations or redistribute resources.

When the need to redistribute resources arises, many companies mistakenly accept in-house payroll as an unalterable cost. Outsourcing payroll can free up time in your human resources department, which allows for renewed focus on building value within the organization, assisting with strategic planning, and recruiting and on-boarding new employees. This ensures that your company can continue to more forward even while cutting costs.

You notice big variances in payroll quality with employee absence.

When your company's payroll is entirely dependent on only one or two people at your company, illness or vacation of those people can impact on the quality of payroll work. Outsourcing your payroll offers a combination of flexibility and reliability impossible to achieve with a payroll department of only one or two people.


'Whether or not to outsource payroll can seem like an insurmountable question at first, but these simple points can help determine when hiring outside help makes sense.'