Is it a good idea to outsource your payroll or do the payroll in-house yourself?

In-house vs Payroll Outsourcing in Singapore

Justifying Outsourcing VS Own Payroll Software In Singapore

When a business delegates a portion or all of its payroll operations to a third party, it’s known as payroll outsourcing. In addition to running payroll, full-service providers typically help with tax reporting, regulatory compliance, data security and unemployment claims.

Employers who don’t have the administrative resources or the expertise to run payroll on their own may want to seek professional assistance from a third party.

payroll outsourcing

Is Payroll Outsourcing A Good Idea?

There are pros and cons to every business decision and payroll outsourcing is no different. Before partnering with a full-service payroll provider, employers should make sure the vendor is capable of meeting all of their requirements and has a reliable track record.

payroll outsourcing

Why Should You Outsource Your Payroll?

Employers might consider outsourcing payroll to a full-service provider if they:

  • Lack the resources (personnel and technology) to run payroll effectively
  • Have been penalized for incorrect or late tax payments
  • Are unable to keep pace with changing employment regulations
  • Cannot meet data security or recordkeeping requirements

What Are The Benefits Of Payroll Outsourcing Services?

Outsourcing payroll may help employers save both time and money. Not having to spend long hours on administrative work affords employers the ability to focus on business growth initiatives, and improved accuracy can prevent costly penalties. In addition, full-service payroll providers that offer flexible pay options and self-service apps can help improve employee satisfaction.

Other benefits for outsourcing payroll:

  • Save time

    When employers take payroll off their plate, they often have more time to focus on other initiatives important to growing their business, such as product development, customer service and sales.

  • Minimize payroll errors

    Payroll providers automate many of the labor-intensive aspects of payroll, thereby reducing the mistakes that commonly result from manual calculations and data entry.

  • Improve security

    Outsourcing to a reputable provider that invests in state-of-the-art technology and has redundant backup and multiple server locations can help employers safeguard their confidential data.

  • Maintain compliance

    Payroll providers stay on top of changing government regulations so employers don’t have to and will often take the lead in filing all paperwork necessary for compliance.

  • Integrate data

    When payroll is fully integrated with time and attendance, benefits and other HR applications, it improves data accuracy and makes it easier to access information through single sign-on

  • Facilitate employee self-service

    Full-service payroll typically allows employees to view their pay information, log their hours and manage their withholdings – all from a mobile device.

  • Reduce costs

    Payroll providers charge fees, but when compared to the cost of the fines and penalties that can result from mistakes, outsourcing payroll may actually save businesses money

How Much Does It Cost To Outsource Payroll?

Payroll outsourcing costs generally depend on payroll frequency, total number of employees and the specific services that are being outsourced. In most cases, there is a per-payroll processing fee and an annual base fee.

However, you would be pleased to know that JustSixty, an online full-service provider is currently free to use. Why not give it a try and reap the benefits from outsourcing all your payroll needs!