The decision to outsource the payroll process at your firm may represent both a strategic and cost-effective business move. However, to make an educated decision, it is essential to have a solid understanding of the actual cost of payroll outsourcing.
Renowned financial luminaries have stated that outsourcing payroll can save businesses up to 18% compared to handling it in-house. Isn’t that noteworthy? So what’s the catch? Let’s take a quick tour to comprehend this.
The fees associated with outsourcing payroll services are often calculated per employee and month. Services such as calculating payroll and tax responsibilities for each employee, printing and distributing checks, and providing management reports are all included in this offering. However, the expenses of payroll outsourcing could grow if other services are provided, such as managing a company’s pension plan.
Hence, the financial implications of payroll outsourcing become evident when you compare these costs against the value of time regained and the potential for reducing payroll errors.