In recent years, as company practices have become more remotely focused, more and more businesses have taken to outsourcing their payroll to other companies. 

This may seem unusual, as surely any business that handles employees should be able to manage also handle payroll. This may not be the case, especially if the company itself is growing gradually and does not want the responsibility of overseeing an entire HR department. 

In this article, some of the reasons why companies are outsourcing payroll will be explored. Some of them may surprise you!


Consider the costs of hiring a single person or a team to handle your company’s payroll. Even if they were based remotely, you would still need to pay them, handle their invoices and potentially cover costs if they needed to take sick leave. By choosing small business payroll services instead, you will usually get all of the appropriate services that you need for a set price each month. Allowing you to spend money on the parts of your business where they can be better used.

Lowers Fraud

It is an unfortunate reality that when it comes to business fraud, the majority of it is conducted by an employee of the business. This means that your entire staff will be called into question, along with you needing to go through an extensive legal process.

The chances of an outsourced payroll team conducting fraud are lower. Their work model is based on providing excellent service and will take additional care to ensure that all of your company’s financial income and outgoing costs are collected and managed correctly. Also, if there is an issue with any of your accounts, the outsourced team will likely have their own complaints procedure, which you will be able to follow up with.

Modern Technology

A team that you hire to oversee your payroll will come with their set price. This will usually include the costs of the computer software and technology that they use, which may be more advanced than any system that you could afford. 

This means that they will not only be able to better manage your payroll but that your business will also benefit from the technology that they use, without you needing to pay a dime towards having it installed yourself. 

Core Focus

While payroll and HR duties are a core part of any business, they are rarely the sole focus. Unless, of course, the business itself can offer the services of an HR service. This means that when you outsource your payroll and other HR-related duties, you and your hand-picked team can focus on the business itself. This can save you both time and money, as many smaller businesses have opted to train one of their staff members in how to operate and oversee payroll and HR aspects while also performing their normal job duties.


If your company needs a specific set of payroll-related tasks done, you won’t have to hire specialists if you are already outsourcing this role to a business. Many companies who perform HR duties have access to their professionals who can oversee these tasks, once again giving you the highest level of expert assistance at a fraction of the cost.

See Also ; Why Outsourcing Could Help Improve Your Business

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