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5 Advantages of Outsourcing Your Payroll

5 Advantages of Outsourcing Your Payroll

What if we told you that the way you’re paying your employees is wasting your money?

We’re not talking about their salaries and wages. We’re talking about the actual process by which you pay them. We want to let you know about the advantages of outsourcing your payroll process.

Contrary to popular belief, you do not need a dedicated payroll person on site or even on staff.

Here are a few other things you may not have thought of when it comes to keeping payroll costs down.

The Obvious Costs

The people who handle your paychecks get their own paycheck. The average payroll specialist in the US makes $51,385.

You may say, “That’s just the cost of having someone making sure my employees are paid and taken care of.”

Of course, that’s something worth paying for. But you need to pay that much? No.

You can get the full breadth of services you get from a senior payroll employee can give you, at a fraction of the cost.

The Advantages of Outsourcing 2: The Hidden Costs

The salary is just the beginning. We both know that your employees cost you a whole lot more than that. Expect to pay at least 10 percent or more on top of their salary to pay for:

  • Payroll taxes
  • Unemployment taxes
  • Workers’ compensation insurance

And if you work in a state with higher levels of unemployment taxes and workers’ comp insurance (for example, New York or California), those rates will be higher for every single employee.

Taxes aside, there are other “hidden costs” like:

  • Vacation days
  • Sick days
  • Bonuses
  • Office space and equipment

You can save all of these costs and pay only for actual payroll services with an outsourced solution.

Training and Up-training

Next on our list of the advantages of outsourcing? Training and up-training.

It costs money to ensure your payroll staff is up-to-date on all of the changes to the industry and changes to payroll software.

If you have a staff of payroll employees, they have to do this on your time. Payroll software licenses are also not free. So, you may have to add new users as you add more employees.

Of course, there is also the issue of training someone new after someone quits. Which brings us to…


Keep in mind that your payroll employees will eventually leave you.

That means you need to replace them as an employee. But you also have to replace their proprietary knowledge of the ins-and-outs of your company.

In fact, according to the Society for Human Resource Management, you’ll spend the equivalent of six to nine months of an employee’s salary while you try to find and train their replacement.

You don’t have to worry about turnover with an outsourced payroll consultant. And an outsourced solution will never leave you for a higher-paying job.

More On The Advantages of Outsourcing

We can show you exactly how you can save money almost instantly and in the long-term with an outsourced payroll consultant. Click here to contact us any time.