As your business grows and you start to add employees to it, the question of payroll becomes a bigger one. There are two paths to take – you can hire a payroll manager or outsource your payroll to an expert. So what are the pros and cons of these two routes?
Why hire a payroll manager?
There is something to be said for having a full-time payroll manager in the business but this is mostly for bigger businesses with a large staff where the question of payroll takes most of the month to deal with. A payroll manager does bring specialist knowledge and expertise to your business – they will be up to date with all the latest tax regulations, systems to use to manage payroll and even employment rules.
A payroll manager working within the business is also on hand to help deal with any problems that might occur. For example, if you need to make use of overtime but are a little unsure if the payroll budget can handle it – they can work through everything with you to make an informed decision.
Is there a downside?
Perhaps the biggest downside of hiring a payroll manager is adding a full-time wage to your business for an experienced professional. For bigger businesses who can warrant the expense, they can be a great option but for many businesses, there isn’t enough work to keep them busy all of the time and this can lead to wasted wages.
Also, you may need to buy expensive payroll software that must be housed on your company’s servers. This can use up resources and mean you need security for your server which adds further costs.
Why outsource your payroll?
The other main option to use for payroll services is to outsource to an expert or expert company. This gets you access to all the benefits of a payroll manager without the need to employ someone full or part-time within the business.
When you use a payroll outsourcing service, you can have the company do as much or as little of the work as you require. Companies will offer a tailored service that fits your needs and helps you keep your spending on the services within a budget. You will still get access to trained and experienced payroll professionals and all of their knowledge without the need for one permanently within the business.
Most companies use specialist payroll service software that runs on the cloud so there’s no need for you to have costly, resource-training software within your business.
Is there a downside?
Obviously, if you outsource, then the person handling your payroll isn’t within the business and you need to reach out to them with any questions or queries. However, most payroll specialists will have services to help you when you need it for any queries.
For many businesses, the cost difference between hiring a full-time professional and payroll outsourcing is significant and is the main factor in their considerations. The ability to use services as needed and not add a wage to that payroll is a huge benefit for many businesses. For information on how Trace Payroll Services can help, use the details below.