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The benefits of outsourcing payroll

The benefits of outsourcing payroll

Payroll management is time consuming and difficult so it’s not surprising that very few business owners enjoy it or like to do it themselves. If you’re currently in the process of weighing up whether or not to carry on as you are or outsource this service, here are a few benefits which should help you to make a decision.


If you’re a large company then chances are that you can afford a big payroll department. If you’re a small business however, in-house payroll can cost a fortune. If you have fewer than 20 employees there’s a good chance that you can save a lot of money by outsourcing your payroll operations.

Simply work out how much you’re currently spending and compare the amount to what an external provider will charge. Don’t forget to factor in other associated costs such as printing and distributing checks and creating tax documents.


As mentioned earlier, payroll management is a time-consuming activity. With this burden removed however, your employees can focus on doing more productive things that can help bring extra income to the business.

Financial responsibility

It’s easy to make mistakes when you have a heavy workload comprising of various different tasks. If your payroll manager is over-worked and trying to juggle multiple tasks, they may be forced to rush through the process which increases the likelihood of mistakes being made.

An incorrect pay cheque can not only anger employees and cause conflict within the business but a big mistake can have serious consequences with the government. If you outsource this service however you can seek financial restitution from the provider which is something you can’t do with your own employees.


In-house payroll activities can only function as reliably as the person carrying out the work. Even the most reliable of employees can get ill, their child might be unwell, they may have an off-day and chances are that at some point they will want to take a holiday.

Whilst these are all natural and expected consequences of hiring staff, when you outsource this function, output speed and quality doesn’t vary in accordance with holidays and illnesses. Additionally, you won’t have to spend time helping new hires understand your business’s payroll system when someone leaves.

Saves time

Because payroll service providers are specialists with a wide range of technical resources at their disposal, they can process even the most complex payroll tasks much faster than an in-house employee would be able to.


A good payroll provider will know all the ins and out of payroll-related tax laws and regulatory mandates. Of course it’s possible for your own employees to achieve this same level of understanding but it would take a considerable amount of investment in time and effort.

At Windsor Accountancy we provide payroll services to a wide range of our clients. If you would like any assistance with this aspect of running your business, please feel free to contact us and a qualified member of our team will be more than happy to help.