When small business owners are deciding whether to outsource payroll to someone else, the pros and cons need to be weighed up.
Outsourcing can incur costs that are far more than a small business can afford – especially in the early stages. It can also mean losing control of one the key elements of your business.
There is also a very real risk that if communication lapses, mistakes will be made. For example, communication over when a staff member leaves.
Confidential and sensitive staff information is often hard for many business owners to agree to lose control of.
You also won’t have direct or instant access to payroll if it has been outsourced. This makes it harder to check it when you want to, or add anything that’s missing.
Confidential and sensitive staff information is often hard for many business owners to agree to lose control of. When you outsource, you will also need to allow for additional time between submitting the date to the outsourcer and when your employees will be paid.
There are some benefits to outsourcing payroll. When you outsource to a specialist, it can put your mind at rest that a professional is handling the bulk of the work and taking care of the tax obligations. It can sometimes save your own staff time (although the high costs associated need to be weighed up).