Is Outsourcing Payroll Cost Effective?

A key question businesses always want to know about any outsourced service is - is it cost-effective? In the case of payroll services, the answer is a resounding yes. There are many outsourced payroll services UK businesses rely on to operate efficiently - but they wouldn't do so if the costs didn't add up.

To understand why outsourcing payroll is cost-effective, you need to know where and how you make the savings.

A Free Guide To Outsourcing Your Payroll
Time & Effort

Managing daily or weekly payroll for even a couple of employees can quickly turn into a time-consuming task. This becomes even more of a problem when you have a business you need to run and every second counts. If you invest the time to do payroll properly internally, you're neglecting other parts of your business. But if you rush, you run the risk of making potentially costly payroll mistakes. Outsourcing is cost-effective because your most valuable resource is your time - and outsourcing payroll allows you more of it.

Equipment & Training

Payroll software can be expensive, especially if it's actually fit for purpose and designed to be reliably used by businesses. This investment can be difficult if your business is reasonably small, but getting the software is only half the battle. After that, you need to learn how to use it properly, as well as keep up with any updates or developments. When you outsource low-cost payroll services you're letting this be handled by people who use this software day in and day out, so you don't have to.

Ensuring Compliance

Employment and payroll are processes littered with complex legislation and regulations, many of which are in a state of frequent change. Keeping up with the legislation governing payroll is no easy task if you have a business to run, but the costs for not doing so are high. You're running the risk of encountering potentially serious fines if you fail to comply with regulations. As with all things - ignorance is not an excuse. Outsourcing payroll means you save money on potential fines, legal difficulty, and compensation payouts for mishandling payments.


This is just the tip of the iceberg - if you run a small to medium-sized business, there is no real way in which in-house payroll is a better option than outsourcing. Outsourcing payroll saves you time, money, and effort. On that basis alone, outsourcing payroll is highly cost-effective for all businesses.

A Free Guide To Outsourcing Your Payroll

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A Free Guide To Outsourcing Your Payroll