Do’s and Don’ts When Outsourcing Your Company Payroll

When it comes to outsourcing services within your business, payroll is one of the most important ones. It can boost accuracy especially when auditing and managing payroll and benefits, reducing tedious tasks for your in-house staff, and streamlining your payroll processes for higher efficiency. This type of service is designed to simplify and ease the burden on the clients using some of the best practices that are known to the outsourcing provider. However, tapping a payroll outsourcing service offers no guarantee. It is important to identify the common do’s and don’ts when outsourcing for optimum results.


Thinking of using a payroll outsourcing service? Take note of this list of don’ts in the process:

While outsourcing your payroll department offers a lot of benefits, you should not dissolve your payroll department altogether. In fact, experts dub this as one of the worst mistakes that small business owners can make. Many business owners think that they can transfer all the payroll responsibilities to an outsourced company. However, you should have one or two payroll employees in-house. That way, you can validate for the accuracy of the payroll and accounting reports.

It is important to reassure your HR and payroll employees about their new role. The moment you decide to outsource the payroll process, it is a natural reaction for your employees to feel worried about the possibility of losing their jobs. You need to speak to them about the change in management and what their new responsibilities will be. It is important to maintain morale within your organization.


When outsourcing your payroll, you should take note of these tips for best results:

You should know what to outsource and which ones you can handle internally. This is another common misconception with outsourcing payroll services. Most companies have the idea that they rid themselves altogether of the processes of handling payroll. However, you should only outsource select tasks while keeping some special issues in-house for you to attend to. You should also have a clear idea of how you handle issues or any roadblocks with the payroll accounting.

You should take advantage of the payroll outsourcing service expert advice. If you have dedicated some time to choose your payroll service, then you should tap into their expertise. As a payroll specialist, they know the in’s and out’s of the payroll process. They have a wealth of knowledge based on their educational expertise and several years of experience in the industry. Make sure you take advantage of that. Eventually, you can use whatever you learned from them in the future when you decide to manage the payroll in-house.

Do take note that when hiring an outsourcing service, you are building a partnership. Both parties should, therefore, work together. The outsourcing service should not just work for you. You need to be proactive with every step to maximize the partnership. It is, therefore, important that you communicate often to address any issues that may arise.

Payroll outsourcing is beneficial if you know how to utilize the services offered. Take note of the do’s and don’ts listed above to ensure that you can gain the benefits promised.

Post a comment

You may use the following HTML:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>