Outsourcing Payroll Management: Here’s What Employers Gain

outsourcing payroll management here is what employers gain

As a good business owner, you already know that you can’t execute every task in-house without any hassle. You need to focus on your core business functions while outsourcing other activities for streamlined working and peace of mind. However, what is in it for the employers?

Of course, employees get timely pay and all their queries are resolved on time. But, employers gain a lot too, such as cost-efficiency, productivity, compliance, etc. We have explored everything about outsourcing payroll management below.

Read on and understand why you need to use HR and payroll outsourcing.

What Employers Gain With Outsourcing Payroll Management?

If you are wondering why as an employer, you should consider outsourcing payroll management, then read on. Here are 5 reasons why payroll outsourcing companies are an optimum choice.

1. Focus on Business

Honestly, payroll can be a source of headache for business owners. They have to look after core business functions and manage everything else, there’s no time for hectic payroll activities. Besides, payroll requirements keep changing. There are new rules, tax regulations and employment laws. These things only increase as the number of employees in your company increase.

However, outsourcing payroll management helps you pass off this hassle to the provider. You can focus on your business and core activities. For instance, a digital marketing agency can focus on digital marketing and a software development firm can focus on offering apps and websites to customers.

Simply put, delegating payroll management can help businesses free time for important business functions. A business owner can improve productivity, service delivery, and product development when payroll worries are not bothering them.

2. Compliance

In between core tax functions, regulations, and payroll requirements, can you really take note of every upcoming law and regulation change? In payroll, these rules frequently change as per the feasibility and ease of the employee. Compliance is important, as without that, you would be paying fines and penalties.

When you use outsourcing payroll management, you are able to maintain compliance. Your payroll outsourcing company has a full-time dedicated team to look into payroll. They have received proper education and training to keep updated with changing reforms and adapt to new rules. This is what helps you maintain compliance.

To make sure that everything is on track, you can even analyze reports offered by the HR payroll outsourcing company and evaluate the performance.

3. The Latest Technology

The technology used in payroll today is advanced. This tech helps you automate payroll calculations, generate reports, and stay updated with what is going on in your payroll department. However, in a small or medium organization, it is not always possible to utilize the latest tech.

Why would you buy the latest tech for the payroll department when you can spend that money on your core business functions?

However, even with this, your employees need quick deposits and details, for which you need new tech.

Outsourcing payroll management can give you easy access to the latest tech. Your employees stay happy and you are able to utilize features offered by the tech.

4. Reduced Risk

How hard is it to handle the payroll processes of the business?

This is definitely the first thing that comes to mind when you start your business for the first time. However, eventually, you may realize that when you are handling payroll in-house, there are so many chances to make mistakes.

You can delay it because something else came up.

You can make mistakes in manual calculations.

You can avoid checking new tax rules, which can again lead to mistakes.

Some of these risks are costly, as you need to pay a fine, and some come with reputational loss.

For example, if you delay payment for two months in a row, your employees will start questioning your ability to pay them on time. If the trend continues, many will leave the organization.

Outsourcing payroll management offers you a chance to control payroll processing yet still relieve from risks. You can ask the HR payroll outsourcing company to dispatch the payroll on a dedicated time.

5. Reduced Cost

Historically, it is the greatest myth of all times that conducting payroll processes in-house is cheaper. However, that is not the case. If you collate the cost of mistakes, penalties, and managing payroll employees, it is much more than the fees that you offer to your payroll outsourcing company.

Even if one day you decide that only one employee is needed for HR functions, then too, your payroll management is costly. Outsourcing payroll management to a third party will give you so many features in less money.

How that is possible?

When you are hiring an in-house team, you need to offer them a salary, training, and technology to complete payroll calculations. But, when you are using HR and payroll outsourcing, you don’t have to think of these additional costs. Your payroll provider is catering to many clients, so they are able to offer you these services at a minimum cost.

Why Companies Outsource?

Many organizations have tried outsourcing and they have loved it. Check the reasons why these businesses outsource payroll management. What do they gain from this outsourcing?


The topmost reason why outsourcing payroll management is preferred is because of accuracy. You get accurate payroll and tax calculations. The stress of making mistakes is relieved from your shoulders. You can hand over the responsibilities to the HR and payroll outsourcing provider and receive accurate results every single time.


Other than accuracy, you also get quality of work. Your payroll dispatch is on time, your tax calculations are on point, and everything else is managed. You just need to give employee details to your provider and enjoy timely payroll and management.

Peace of Mind

Above everything, you get peace of mind. As a small business owner, it is highly likely that you are already wearing a dozen hats.

You are looking after the core business functions.

You are acting as the innovative head.

You are managing finances.

You are looking after employee training.

You are managing employee raises.

And many more.

Outsourcing payroll management in this case is peaceful. There’s one less thing to worry about.


It is not likely for an outsourced provider’s member to conduct fraud and it is not likely to lose your data with a provider.

The reason behind this is that the HR payroll outsourcing company has an advanced security structure to manage confidential and sensitive data. Further, multiple members are looking after your payroll, which mitigates the risk of fraud. Many people are ensuring that you get payroll processes on time, which helps in executing everything perfectly.

Should Small Businesses Consider HR and Payroll Outsourcing?

As a small business, should you consider outsourcing payroll management? There are many benefits of HR and payroll outsourcing and most of these are for small business, here’s how:

Employee Self-Service

The payroll processing structure has now moved to a better-digitized structure. When your employees need to know details of their payroll, they just need to access the employee self-service portal. There’s no need to visit HR to resolve queries.

For a small business, this can be extremely beneficial. With an outsourcing payroll management provider, you get employee self-service. All your employees can visit the portal to check their payslips, deductions, etc. You don’t have to answer queries related to the dispatch date and other details. This time can be spent on core business functions.


More than anything, if there’s one thing that a small business owner misses, then that is support. Many times, you don’t even know if you are executing a law or regulation correctly. With HR payroll outsourcing management, you get this support all the time. If you have any doubt, you can call the payroll provider and ask them for clarifications. This will help you execute everything correctly without any doubt.

You can also ask for expert advice whenever you are stuck.

Which is the Best Outsourcing Payroll Management Company?

We are sure that after this discussion, you are already looking for a payroll outsourcing company. Here’s the best choice: Paysquare.

Paysquare is a payroll and accounting outsourcing organization with years of experience. Over multiple years, Paysqaure has catered to the outsourcing requirements of a range of small and medium businesses. From seamless payroll processes to 24/7 support, Paysquare offers you everything. You just need to connect with us, create an outsourcing package, and get started.


It is a common myth that outsourcing payroll management is only for the sake of employees. But, in reality, employers gain a lot more from this collaboration. You get peace of mind, cost-effective payroll management, accuracy, and data security. As an employer, hiring a payroll outsourcing company is never a loss, it is always a win-win situation for the employer.

So, just focus on your requirements, look for a vendor with good reviews, and move ahead with this partnership.