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Advantages of outsourcing payroll

Payroll management is essential to the success of any company. For one thing, payroll errors can leave employees disgruntled and discouraged, lowering employee engagement and productivity while boosting attrition. Furthermore, mistakes might result in hefty penalties and fines.

Unfortunately, as critical as correct payroll is to your company, it’s also one of the most complex and time-consuming processes to master.

Forward-thinking businesses are increasingly turning to outsourced payroll services to boost productivity and revenue.

1. Focus on Core Activities

Payroll processing in-house is time-consuming, and accuracy is critical. Employee classification, overtime payments, employment taxes, garnishments, and levies all require precise reporting. Payroll gets increasingly time-consuming as your company expands and the amount of your personnel grows.

2. Reduce Costs

Businesses who believe they would save money by processing payroll in-house are frequently mistaken. The truth is that time is money, and as previously stated, payroll preparation takes a long time. Simply add up all the time your company spends calculating employee hours, deductions, paid time off, sick leave, and taxes, as well as printing, signing, and distributing paychecks and preparing payroll reports, to see whether this is true. Calculate the cost of outsourcing by multiplying those hours by the hourly wage you pay in-house payroll preparers. You might be amazed at how much money you can save by letting a third party manage your payroll.

3. Data Will be Better Protected

Your payroll data is vulnerable to both internal and external attackers. Internal dangers include personnel who can commit identity theft or tamper with records for a personal benefit if they have access to sensitive data. External risks are even more subtle: any security hole allows hackers to take your data and use it for illicit reasons.

Your data is stored on highly secure servers with state-of-the-art encryption technology and numerous backups when you outsource payroll. For most firms, matching that level of security in-house is prohibitively expensive.

4. Access to other specialized services

Many HR outsourcing companies can provide payroll services in addition to a wide range of other services, such as compensation, health benefits, and human resources support. Organizations like Alya Auditors allow you to pick and choose from several of these other, specialized services in order to satisfy the specific needs of your business.


A growing number of forward-thinking companies have already outsourced their payroll services or are seriously considering doing so in the near future. Although no solution is right for every business, for the vast majority, outsourcing payroll makes sense—it can save you money, allow you to focus on what you do best, ensure compliance with government regulations, secure your data, and give you access to other specialized services that can help you grow your business and add to your bottom line.