When it comes to managing your payroll, you have a fundamental choice: handle it yourself in-house or outsourcing the task to a specialist provider.

Each approach has its own benefits and considerations that will differ depending on your business setup. 

Factors favouring in-house payroll

• Direct control: If immediate access and absolute control over every step of the payroll process are critical to you, in-house management might be the more comfortable option.
• Unique customisation: Does your payroll have highly specific or frequently changing requirements that might be difficult for an external provider to quickly adapt to? This may be a reason to consider an in-house solution.
• Existing capacity: If you have an existing in-house team with the skills, resources and time availability to manage payroll effectively, outsourcing may not be necessary.

Factors favouring outsourced payroll

• Cost-effectiveness: Outsourcing eliminates expenses associated with in-house staffing, software costs and ongoing training for payroll legislation updates.
• Expertise and compliance: Payroll providers specialise in tax regulations and compliance. They bear the responsibility of avoiding costly errors and penalties.
• Scalability: If you are experiencing fluctuating employee numbers or anticipating significant growth, outsourcing can make scaling your payroll far easier.
• Focus on core business: Outsourcing frees up your internal team, allowing them to focus on your company’s core business activities and revenue-generating tasks.

Read more and view the full decision checklist: Outsourcing vs in-house payroll: a checklist to help you decide.

Please get in touch if you have any questions. 

Article author – Adam Flight, Payroll and HR Consultancy Director.