More often than not, Organisations opt to have an in-house Payroll processing officer / department as they feel more in ‘control’ of privacy and security as well as the perceived saving in doing so, in-house.
In reality, these are simply myths and in fact Outsourcing your Payroll can have more benefits than you may realise. Some of the more immediate benefits are;
Cost Savings: By outsourcing payroll services, companies can save on the costs associated with hiring a full-time payroll specialist or staff as well as all the administrative costs associated with retaining staff (leave, overtime, medical benefits, bonuses, hardware etc.). As the case is in Sri Lanka, each time there is a change in taxation policies, you do not have to spend on expensive modifications to in-house system as well as staff training
Time Savings: Outsourcing payroll can free up time for a business to focus on its core tasks, such as Sales & Marketing, Product Development, Business Development, etc. Also the elimination of changes mentioned above has a huge impact of unproductive time saved.
Tax and Compliance Expertise: Outsourced payroll service providers are often more knowledgeable and experienced in payroll and taxes than an in-house staff, meaning you could potentially save money on taxes and have greater compliance with government regulations.
Accuracy and Security: Outsourcing payroll can help ensure the accuracy and security of your payroll data as this is the core business of such service providers. Furthermore, given the importance of credibility and customer retention, your Data and Information is likely to be more secure than it would be maintained by own employees. This helps protect you from potential payroll fraud as well.
Flexibility: Outsourcing payroll can give you the flexibility to easily scale your payroll services as your business grows. Even if your organisation doubles in (employee size) your service provider can cater to this expansion without you having to expand your physical accommodation for Payroll and at a marginal increase in costs.
Research has shown that the actual cost of employment is almost double the direct cost of salaries and direct expenses when you consider the imputed cost of time/productivity lost, non-cash benefits, replacement costs as well as other administrative costs.
Given our experience and expertise in processing Payrolls for Organisations of various sizes, we can confidently say that we can provide a better service for 20% less than what is costing you now!