Should You Use Software or HR Payroll Outsourcing?

HR Payroll Outsourcing

It is becoming evident that organisations can benefit and gain financial savings from Payroll Services and Payroll Outsourcing, allowing for better focusing of their core activities.Outsourcing payroll is becoming more and more the preferred business solution for processing this non-core activity and complex legislation makes payroll an ever expanding minefield. There are not many CEOs or business owners that can say they enjoy payroll management.


Payroll processing involves maintaining records accurately, calculating payroll taxes and handing out the paycheck to employees on time Worker's compensation, health and disability insurance, tax filing, and benefit management. Small and medium-sized business owners realize that outsourcing payroll services is more effective and cost-efficient than doing it on their own. This is exactly why outsourced HR payroll administration has become as popular as it is now. It is easy to understand why if we take a look at the reasons mentioned below:






A big company can afford hiring staff and creating a special payroll management department. On the other hand, a small company does not and it is hard for it to cope with such a task. Most small to medium sized companies can benefit from outsourced HR payroll. This is because you gain time to dedicate to activities that are actually generating profit. Payroll administration does not.


Increased Productivity

The problem with payroll administration in HR is that it does take up a lot of your time. If you get rid of that time and you dedicate your efforts to other areas you will gain a lot of extra productivity. You or your staff can concentrate on what actually counts.



Unfortunately we might be faced with not being able to properly manage HR payroll administration. Employees get a sinking feeling when they look at their paychecks and they're wrong! If they believe the payroll department didn't calculate their overtime properly or deducted too much for their health insurance, the first thing they do is reach for the telephone. Then, the payroll staff has to drop every. outsourced HR department does not have this problem to deal with as they are experienced and they can properly handle everything.



An outsourced HR payroll solution offers a lot of experience to the table. The people that will work for you really know what they are doing. This immediately translates in a faster pace at which they can finish tasks that would take you a lot of time.



Good payroll administration firms know what they are working on. They basically know all the details that are linked with outs and ins of taxes, regulations and obligations. It is true that the employees you have can learn everything that is linked with this domain but that surely would take a long long time.



If anyone makes a mistake in a domain like payroll administration a lot of problems appear. This makes employees angry and you might also find yourself into serious problems with the government due to taxes. Good outsourced HR payroll services are a lot less likely to make mistakes when compared with you. Even if something bad happens the responsibility falls on the shoulders of the provider and not on you.
As you can see there are many reasons why outsourced HR payroll services should be recommended. You can gain a lot of time and money by outsourcing such a delicate department.


Software or HR Payroll Outsourcing?

When it comes to HR payroll outsourcing there is one alternative that some companies are currently using and you might want to consider. We are talking about the possibility of getting specialized software to use in order to handle all your payroll services alone, without the need to hire another company to do this. Should you consider such an alternative?


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The Advantages of Using Software over HR Payroll Outsourcing

Probably the biggest advantage we can think of stands in cutting costs even more. Through HR payroll outsourcing you already cut costs and using special payroll software appears as a solution that will save you even more money. For a small company this can be great since their payroll needs are not as high as a big company would have. Even some medium sized companies might benefit from using software instead of HR payroll outsourcing. Also, you can get all the management done right if you know how to properly use that software. You should know that a lot of companies that you outsource to are basically using payroll software to manage your payroll needs.



The Disadvantages of Using Software over HR Payroll Outsourcing

The biggest problem with using software over outsourcing payroll stands in the fact that you really have to know how to properly use the program. It is not as easy as purchasing a license and getting the job done fast. In most situations you have to spend some time in training an employee or a department in the use of the payroll software you might have just purchased. This can take up time and you might even need to hire someone else that knows what he/she is doing. We can say that the biggest disadvantage stands in not knowing how to properly use the payroll software and not maximizing the benefits it brings in. Also, there might a possibility that the particular software you are considering is not well designed to suit your own HR payroll needs. Make sure that you research and ask for a demo before you purchase.


Should You Use Software or HR Payroll Outsourcing?

This is one question that only you can answer. It all depends on your company and its needs. Sometimes it is great to use software but if you can not use it right then you are making a bad move. Think about the fact that HR payroll outsourcing providers are experienced and they can do the job a lot faster than you can.  We believe that a good company can save you time and money through this experience factor.

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