Should You Outsource Your Payroll Services?

It’s a common question that comes up for every entrepreneur at some point in time. Should I keep payroll in-house or am I better off outsourcing it to a payroll services firm? There are few entrepreneurs that would point to payroll management as one of their favorite things to do. Most would rather be off creating new products, or selling their company. Of course the answer can be different for everyone, but here are some points we believe you should keep in mind if you are considering making decision to outsource payroll.

The Cost: If you have a small business having an in-house payroll department can cost you substantial money. Think about it. Take a look at how many people you have on-staff that have some amount of their time devoted to payroll duties. The figure out how much that is costing you, (e.g., salaries, benefits, etc.), for those positions and compare that to what you would spend on an outside payroll service. Don’t forget to take into account the amount you are spending on supplies, (e.g., checks, etc.), and other payroll related expenditures like printing checks, and the distribution of those checks. If you are employing twenty people or less, it is quite likely that you will save your company money by outsourcing to a payroll services company.

The Time: As you know by now, doing payroll management can eat up a good portion of time – either your personal time or the time for your employees whom you have assigned to this task. If you can outsource your payroll a few things should be able to happen: 1) if you have employees whose sole job is payroll administration, you may be able to reduce staff, 2) if you have employees who devote part of their time to this effort, then they can be freed up to work on doing other, more productive business-centric tasks.

Accountability: Let’s face it, people want to get paid the correct amount, and get their paychecks on time. So if for any reason paychecks are late, or someone’s payroll information is handled incorrectly, handling that in-house can prove to be a nightmare for you, not to mention eating up a lot of time (and potentially employee goodwill). However if you are outsourcing payroll, then it is the payroll outsources services provider's responsibility to make things right, in a timely manner. If that provider can't (or won't) fix the situation, you can always switch to another provider and sue the previous one. With an in-house payroll staff you do not have that kind flexibility.

Speed: When you hire a payroll-services provider you are getting experts at doing one thing – processing your payroll. These firms have with wide variety of technical resources at hand which enables them to process very complex payroll situations at very fast speeds.

Accuracy: As we alluded to earlier, payroll mistakes can anger your employees, cause internal disruptions, and be enormous time-sync for everyone involved. No one running a small business needs those kinds of headaches. When using a professional payroll outsource company, they are much less likely to make any kind of serious errors than is an in-house employee, who is trying to do payroll along with a hundred other things.

If you are interested in payroll and bookkeeping services, please contact us at

We will set up employees, enter time sheets, process employee payroll, upload 3rd party payroll reports, allocate labor cost by customer or job, and pay payroll taxes. We can work with your payroll provider or recommend the right payroll service for you needs.

  • We can set up direct deposits.
  • We’ll take care of all the payroll deposits, quarterly and annual payroll tax forms.
  • Payroll Management System

    You must have to outsource your business payroll solution if you are
    running a small business which helps you a lot as explained above
    otherwise you may have to set up your own payroll systems (or buy best
    payroll software) if you have all resources.

  • Stephen Hussey

    Outsourced payroll serves many benefits if we are new to business, because we can get work done by experienced ones and can maintain good standard in market easily. We can gain more profits that can’t be attained without outsourcing.

  • Mackenzie_Taylor

    Outsourcing Payroll saves the substantial amount
    of time and resources of the company. Incorrect payroll can cause the company
    to pay penalty and it can impact negatively on the employees also. Outsourcing
    companies are professionals, experts and have tons of experience like Ayers outsourced payroll providers who have experience of 20 years, can be correct to hire to calculate the payroll.

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