Desktop Banner

Mobile Banner

Should you outsource payroll or run it inhouse using SaaS?

The importance of payroll is often overlooked despite arguably being one of the most important functions within any business. Those working in the payroll profession will be familiar with the mantra of being paid ‘correctly and on-time, every time’. While this might seem like an impossible standard, this is the basic expectation of every employee and stakeholder of payroll.

Failure to achieve this standard can lead to a variety of adverse impacts on your business, such as staff demotivation, increased turnover plus the risk of legal action and fines. Getting the right solution in place can help nullify these issues and provide a number of tangible benefits across your business. Therefore, it’s of vital importance that this key responsibility is given careful consideration and that the right solution is selected. RSM has advised thousands of clients on finding the right solution to meet their requirements. But what are those options?

Ultimately a choice will be made as to whether to process the payroll in-house within the business as a Software-as-a-Service (SAAS) option, or to outsource to a dedicated payroll service provider as a managed service. Every business is different, and each will have different requirements for what is important to their payroll function. Reviewing the benefits of each of these options will identify which works best for your business.

Benefits of an outsourced / managed payroll service

Outsourcing is sometimes considered the best option for a smaller business. However, businesses of all sizes whether that be a single employee all the way through to those with tens of thousands of employees may choose to outsource their payroll function. The benefits of outsourcing your payroll include:

These benefits might be exactly what any business requires, reducing costs whilst taking away the hassle of payroll so that the focus can remain on the core goals of the business, However, an in-house SaaS solution can also provide similar benefits.

Benefits of in-house payroll using SaaS

In-house payroll can sometimes seem like an expensive option that is only available to larger businesses with the means to employee payroll staff. However, it is a solution that can employed by businesses of all sizes. Processing your payroll in-house can:

For some businesses, the full control over the payroll function that processing in-house provides may be desirable, providing the freedom to process exactly as best suits your key requirements across every area of the business.

It’s clear that there are benefits to both processing a payroll in-house and outsourcing. All business needs are unique and will drive what the most important factors are for deciding which option to take.

If you would like to know more about our payroll solutions, discuss the benefits of outsourcing versus in-house or are thinking of changing your service, please contact Steve Sweetlove or Richard Arthur.

authors:steve-sweetlove,authors:richard-arthur