Managing payroll can be a pain. The work is constant, detailed and full of possibilities for error. For this reason, many companies opt to outsource this task to a skilled service provider. Here are three good reasons to keep your payroll in-house.
- Save Money – Outsourcing your payroll may seem like a practical, cost-effective solution. However, most 3rd party services charge expensive rates for managing your payroll. They also typically charge additional fees such as a base account fee, a per paycheck fee, and additional fees for tax-related services. Check out our last post for a price comparison of some of the industry’s most popular payroll services. Investing in a ‘do it yourself’ solution like Microsoft Dynamics GP, for example, is a much less expensive option over the long run.
- Save Time – By keeping your payroll operations in-house, you save time by eliminating constant communication with a 3rd party provider. Another disadvantage of using a 3rd party payroll provider is that errors are often detected after checks have been distributed to employees. Staying in-house helps to reduce the risk of error, which can be fixed during payroll processing as opposed to wasting valuable time correcting mistakes in the general ledger.
- Keep Control – Keeping your payroll in-house means maintaining control of your data. This provides an added layer of protection for your employees. Exposing sensitive information about salaries, benefits and work status to an outsourced payroll provider puts your employees at risk. By going in-house, you chose to keep their private data in your own secure database. In-house payroll also allows you to control exactly who in your organization can view this sensitive data by granting security roles in your chosen payroll software.
Companies experience various challenges in the day-to-day operations of their business, but payroll doesn’t have to be one of them. By investing in an in-house payroll solution, your organization can save money, time and lower the risk of a data breach.
