7 Outstanding Business Benefits of Payroll Outsourcing


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Recognizing inefficient aspects of your business and finding solutions to each is a great way to set your company up for growth. You may very well be unaware of options available to you that can improve your company operations overall. It is imperative to research and take advantage of tools and services out there for areas you think are weak links in your company processes, payroll outsourcing being one of the most significant and common business trends to date.

Payroll management is a necessary element for any company, but it comes with its own wealth of complications.  When run internally, there are often reporting conflicts, accounting errors, and simply untrained people that can drag the payroll processing for your company, and therefore spoil employee morale and company culture if not handled in a timely manner.  Outsourcing your payroll can solve these problems while saving you money and hassle.

What is payroll outsourcing?

Payroll outsourcing is a third-party solution to process your payroll on time, efficiently, and properly for your books and tax purposes. Depending on the package you choose, this might include everything from keeping track of employee hours to physically delivering each paycheck and pay stub. These services allow your business to focus on what you do best while still being assured that your payroll cycles are being professionally handled and all mistakes accounted for and corrected.

Related: Outsourcing Payroll to Meet the Needs of Your Business

What should you outsource payroll?

Outsourcing can be daunting for some small businesses – but fearing adaptation is asking for stagnation or even overall failure.  Below are seven practical reasons why your company will likely see great results by utilizing the tools offered by a payroll service provider.

payroll outsourcing

Better efficiency

Payroll outsourcing means your payroll is being processed by a team of payroll experts. This means that your payroll will be run more efficiently and with fewer mistakes. Internal payroll errors are a huge source of stress for administrators and employees alike, so reducing these can provide a huge lift to your staff.

Outsourcing to experts also does a great deal to help your team focus on building your product and brand for maintaining quality and even expansion. The simplification of process and stress-reduction of outsourcing payroll can do wonders for a business.

Data security

Outsourcing is often more secure than running in-house payroll. While sending out your payroll might seem risky, the truth is that most payroll security issues occur in-house. Multiple job sites, different ways to report, and improper data storage are all critical issues in payroll processing that could cost your company significantly if a breach occurs.

Again, payroll companies concentrate only on payroll, so their security measures are created specifically with payroll in mind. If you want to make sure that your payroll data is secure, you should trust a company that’s in the payroll industry.

Additional Hiring Resources

Outsourcing payroll allows you a greater degree of flexibility in hiring new employees. This can be a perfect choice for those businesses that are in a growth cycle but who still can’t spare employees for those aspects of the business that are not considered part of their core competency. If you need to do the most with a limited number of employees, you need the flexibility that comes with outsourcing your payroll department.


Every business has certain laws that it must follow when it comes to payroll. Whether these are issues of record keeping or tax compliance, breaking the rules can cause significant financial and regulatory issues for your company.

Fortunately, a top-rated payroll company will help to ensure that your organization is following all of the relevant regulations even as it processes your payroll each month. Finally, if something does go wrong, a professional payroll provider will have all of the proper contacts and experience with these issues to rectify them quickly.

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Expert Advice

When you outsource payroll, the team you hire is one that dedicates its entire attention to the minutiae of payroll process. This includes tax law, regulations, HR solutions, and updates to best practices. 

A claim or dispute with the IRS or state government might take small businesses months to resolve. Similarly, new wage structure or workers compensation claims could take time and resources from executives or other valuable members of your team. With an outsourced payroll provider, they will know the proper ways to handle these obstacles without causing your team any additional headache.

Reduced Payroll Costs

Processing payroll is more expensive than you might think. It’s not just the cost of hiring and paying payroll staff – which can be significant on its own – but also the cost of keeping the department moving. This means investing in both hardware and software, constantly updating security measures, and continually hiring more skilled personnel as the needs of the company grow more complex. Reducing clerical errors is also a way that professional payroll services can help your business.


Outsourcing your payroll also allows you to scale your payroll needs as your business changes. Your internal hourly cost will not increase as you scale, nor will you have to change systems as you deal with new classifications of employees and contractors for different projects. Once you’re working with a payroll company, making changes is as simple as consulting with the company and making a few alterations to your current agreement.

Access to Better Technology

One overlooked benefit of outsourcing is getting access to better payroll software. Payroll technology is always changing, but most businesses can’t afford to keep up with the latest iterations of digital payroll processing. Since payroll companies depend on technology to provide their services, they’ll make the investments that your business cannot. This means that you’ll always have access to the best in the industry, even if you don’t have to go through the painful process of upgrading yourself.

payroll outsourcing

Get Outsourced Payroll Solutions with Paytech

Outsourcing payroll is a big move for you and your team, and Paytech is here to help you every step of the way. We have decades of experience helping small businesses make this transition for scalability and success, and are confident that our outsourced payroll solutions can reduce stress while increasing profitability.

If you’re ready to seriously consider payroll outsourcing, then feel free to take a look at our pricing and packages today. Our experts will be glad to consult you about the best plans available for your company’s stability and growth.

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