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Outsourcing Your Payroll

Advantages and Disadvantages of

Payroll Outsourcing

Deciding between doing payroll in-house and outsourcing can be challenging. Here I have set out a few advantages and disadvantages for you to make a confident decision in which route you want to take.


  1. Time

Advantage: Save Time – Managing payroll is no quick and straightforward task; by outsourcing your payroll, you will have more time to spend on other aspects of your company, and your employees will receive their paychecks on time, every time, increasing their productivity and their trust and loyalty to your company.

Disadvantage: Takes Time – If you are only starting to outsource your Payroll, it will take some time to get all the systems in place and gather all the employees’ information. Training for new systems will be a must, especially if specific software is involved.

Luckily BDCS has a Mobile ESS App, which speeds up the gathering of information and requires little to no training to use.


  1. Cost

Advantage: Managing your employee’s time off can become very difficult while handling HR and Payroll simultaneously; outsourcing removes the risk of unreported PTO days. A payroll solution will reduce the time spent manually processing your payroll each month. The outsourcing company will also reduce any tax penalties and compliance risks you may have.

Disadvantage: Depending on the payroll outsourcing solution you choose, you will have to pay for services rendered by a fluctuating balance or a set monthly amount. Although this solution might be a little costly, managing your payroll yourself could end up costing you more. This is why BDCS is dedicated to setting up fair payment contracts between our clients and us and staying within the staff salary margin provided by our clients.


  1. Compliance

Advantage: Some outsourcing companies provide a compliance guarantee, leaving them to make sure that your business complies with all rules and regulations, reducing risk to your business. A good payroll and HR outsourcing company will also be able to do tax filing and payments for you, keeping you up to date with any tax regulation changes.

Disadvantages: If the company you use does not pay the business taxes quickly and accurately, your company will still be responsible. At least most payroll and HR outsourcing companies offer Payroll management with tax compliance and will file, calculate and pay the taxes on your behalf. BDCS is one of those companies; we take complete control of your Payroll process so that you and your staff can focus on the core of your business.


Is outsourcing payroll a good idea?

It depends on what the risks and benefits are for your company. It is vital that you consider this and its impact on your day-to-day processes. Considering the possible risks and benefits, you must also consider the time and money spent. There is a lot to understand, but using a payroll outsourcing company can be very good for your business, reducing time spent and any compliance risks. Take a while and think about these advantages and disadvantages before making your decision.

Although the decision is relatively straightforward, outsourcing your Payroll to BDCS would be a move in the right direction if you want to see growth in your company and have staff that is happy and ready to work due to their salaries being paid on time, every time.