Top 7 Advantages of Outsourcing Payroll Services
Do you think your HR staff is spending all their time on payroll processing and ignoring strategy and higher-level tasks? Well, they are not to blame because payroll is a time-consuming and complex function. Why not try outsourcing payroll services? It will free their time and allow them to realign their focus.
What is Payroll Outsourcing?
Payroll outsourcing involves appointing a third-party firm to manage your company’s payroll activities. They take care of wages and salary calculations, statutory and tax deductions, itemised payslips generation and prompt salary disbursements.
Choosing the best provider for payroll outsourcing Singapore helps you eliminate payroll mistakes and employee distrust and dissatisfaction. These firms use the latest tools and knowledge to prompt and accurate payments.
Why Businesses Outsource Payroll Services
If you are still not decided whether to outsource or execute your payroll in-house, there are a few things that you should know about. As your company grows, in-house payroll becomes unmanageable. The task takes more time and claims more resources.
An outsourced payroll firm frees your HR staff from this task. It enables them to refocus their attention on employee and HR management, strategic activities, and employee benefits. If you are interested in knowing more, read about the advantages of outsourcing payroll services in Singapore.
Main Advantages of Outsourcing Payroll Service
The payroll regulations also change too often. Failing to incorporate new changes in your payroll can be disastrous and compromise your compliance.
1 Save Time and Cost
As a business owner, you understand that time is limited and valuable. And experts advise that you should prioritise it to grow your company instead of devoting it to administrative or compliance-related tasks like payroll processing.
Payroll firms have accountants to take care of your payroll accurately. They have experts with updated payroll knowledge and execute it in less time.
As you pay only for what you get, it saves money. You don’t have to spend on in-house payroll staff, resources, and whatnot. You save on employee salary, benefits, Etc. You don’t have to hire or fire them or look to hire additional hands to accommodate the increased workload. It streamlines your HR management.
Outsourcing of payroll function also enables you to eliminate manual and time-consuming payroll tasks and sets you free. You get to use the saved time and mental space to go after your business goals and objectives uninterrupted.
2 Increased Accuracy
You can’t make a single error in your payroll. It not only spoils your relationship with your employees but also breaches compliance. It also has the potential to hurt your brand image.
Professional payroll services use the latest software to automate their work. It enables them to reduce manual payroll errors to a great extent. Their attention to detail and accurate output enable you to avoid the consequences of a botched payroll job.
3 Compliant Payroll Processing
Payroll regulations change frequently. Overlooking them and failing to factor them into your payroll calculations can land you problems. It is what makes in-house payroll processing a dangerous proposition.
However, firms providing payroll outsourcing Singapore employ experts and make efforts to keep them updated. These experts attend training programs to understand the impact of the new changes in the regulations. It makes their work more reliable and compliant.
These professionals enable you to live free without having to worry about IRS fines and penalties. You get to focus on growing your business without having to worry about the correct statutory contributions or the tax amounts.
4 Ensure Data Security & Prevent Fraud
Today, you have to be proactive in guarding your sensitive accounting, payroll, and employee data. The payroll firms take these threats seriously and act against them at a professional level.
They use advanced systems connecting multiple servers to store and protect your data from hackers, ransom-ware, and other cyber threats. They keep your payroll data secure and easily accessible to authorised users like you.
Many businesses lose money to internal fraud. Outsourced payroll services assist you in preventing fraud by directly depositing salaries in employees’ registered bank accounts.
5 Access to Team of Experts
Outsourcing your payroll function gives you access to a team of payroll experts. With an affordable fee, you get a more experienced and knowledgeable payroll team than you ever could hire for your in-house payroll department.
These top-notch experts bring niche-specific knowledge, efficiency, and accuracy to your payroll processing at reduced costs and efforts. Their output gives you a better chance of being prompt and compliant.
6 Scalable Payroll Solutions
Firms providing outsourced payroll services are flexible. They are professional enough to up or down-scale their services to you depending on the ups and downs in your business.
You do not have to keep paying or boot out a payroll executive when the business is down. Or, run to the job market to hire a payroll professional immediately to accommodate the increased workload. With these experts to support you, you do not have to lift a finger to execute payroll on time. They work as a team and share the workload.
7 Integrated Suite
Outsourced payroll services firms work with your in-house HR and accounting/ finance teams. They have the expertise to integrate with your existing systems, including payroll software. Integrating systems simplifies and streamlines your operations and supports overall business strategy.
Drawbacks to Outsourcing Payroll Services
There are a few drawbacks to outsourcing of you payroll function to a third party firm. When you hire one such a firm,
- You lose control over your payroll process and must open your data to your services provider
- Doing so may make you feel vulnerable or highlight your reliance on a third-party
- It may make you worry about the customisation
- You may worry about the hidden costs and fees for additional services
Selecting the Best Payroll Outsourcing Provider
You must be careful when choosing the best payroll outsourcing provider. It has compliance implications. You should short-list a few firms and go through their customer reviews.
You also need to talk to them, tell them your needs and ask them about their expertise and how they will customise their payroll services. Ask them about the data security, technologies and communication channels they use. Ask them about charges for additional services and find out if there are any hidden costs.
Hire our outsourcing payroll services to eliminate your payroll complexities. We set you free to give all your attention to your business growth. Contact us at +65-6536 0036 or email us at info@sbsgroup.com.sg for accurate, prompt, and compliant payroll processing.
