Outsourced Payroll vs In House: What Are The Differences?
As a business owner you know the importance of ensuring that your team is paid in an accurate and timely fashion. How do you manage it, however? Do you choose to invest in the services of payroll outsourcing companies, or do you manage it in house?
When it comes to in house payroll vs outsourcing, what do you need to know?
What’s The Difference?
In house payroll management involves it being handled by an internal team. They will operate within your business, be employees of your business, and everything will be done within your business. Payroll outsourcing involves getting an external company involved who will handle your payroll on your behalf, often working remotely from their own premises.
What Are The Benefits Of Each?
The benefit of in-house payroll is that you have the knowledge that everything is being handled under your own roof and by your own employees. This can give you a perception of more granular control over the process.
The benefits of outsourcing payroll involve it being easy to get started, a guarantee of ongoing regulatory compliance, support, streamlined processes, and the ongoing assistance of a team of industry professionals. It’s also much cheaper as you won’t have to make investments in your infrastructure, nor will you need to subsidise ongoing training.
Are There Any Negatives To Consider?
Managing your payroll in house can have some downsides to consider. The first is that your support network is entirely internal, meaning it’s only as good as the employees you choose. Also if you don’t have appropriate disaster mitigation protocols any crashes or errors can cause your business to come grinding to a halt. There are compliance issues that need to be monitored too, as well as ongoing data security considerations. It’s also key to remember the sheer budget required to manage payroll in house.
Outsourcing presents none of these drawbacks, offering instead a consistently more affordable, reliable, dependable, and accurate payroll management service. This is why businesses of all sizes choose to outsource their payroll needs.
Payroll Outsource Or Inhouse?
There’s no right or wrong answer, there’s only what’s best for your business. Think about the size of your business, your plans for growth, the existing payroll experience of your team, and weigh that up against the ease of outsourcing.
To learn more about outsourcing your payroll requirements, or to get a quote, contact eSlip Payroll today.
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