Why Are More And More Companies Choosing To Outsource Their Payroll Function?

The most obvious reason is cost; the time spent calculating wages, taxes, various contributions and finally paying employees is greatly reduced when the process is outsourced. Anyone that has had the pleasure of processing payroll will know that is a complex and time-consuming task. It requires meticulous record-keeping, comprehensive tax knowledge, extreme attention to detail and efficient work habits. It is widely accepted that companies that outsource their payroll can reduce their payroll cost between 18% – 20%.

Other benefits of outsourcing include;

• Compliance expertise: Payroll providers keep up with regulatory changes and notify their clients about adjustments to wage and tax laws that affect their business, thus avoiding penalties or late fees.