In-House vs Outsourced Payroll Manager: Which Is Best?
In-House vs Outsourced Payroll Manager: Which Is Best?
In-House vs Outsourced Payroll Manager: Which Is Best?
Explore the pros and cons of hiring an in-house vs outsourced payroll manager for your business. Read on for expert tips to choose the right fit.
Keyword(s): payroll manager
Did you know that nearly 98% of companies in Canada are small businesses? According to the Government of Canada, this is nearly 1.2 million companies. Regardless of the size of your business or what industry it operates in, it's imperative to handle your payroll responsibilities correctly.
Working with the right payroll manager goes a long way, but not everyone understands the benefits of an in-house professional vs an outsourced one. Let's take a closer look at both in our guide below.
Key Differences Between In-House and Outsourced
Payroll management involves selecting the best method to handle employee compensation accurately and on time. Choosing between in-house payroll processing and outsourced payroll services depends on your company's:
- Size
- Resources
- Specific needs
In-house teams offer full control but may require significant investment in software and training. Outsourced services handle payroll off-site, saving time while reducing the risk of compliance errors. Both options provide distinct advantages, and understanding these differences helps businesses make informed decisions.
Benefits of Hiring an In-House Payroll Manager
Managing payroll internally provides direct oversight and ensures sensitive employee data remains within the organization. The benefits of in-house payroll include faster access to data and the ability to resolve issues immediately. Companies with in-house payroll teams can customize their payroll systems to meet unique requirements.
A dedicated manager also ensures that processes align with company policies and employee expectations. Using this approach suits businesses with sufficient resources to invest in technology and staff training.
Why Businesses Choose Outsourced Payroll Services
Companies often opt for external payroll services to focus on core business activities while leaving payroll complexities to professionals. Outsourcing payroll benefits include reduced administrative burdens and access to expert advice on compliance.
Partnering with a service provider can also ensure timely payments and accurate tax filings. Businesses with limited expertise in payroll management solutions often find this option more efficient.
Evaluating Costs for In-House vs Outsourced Payroll
Assessing the financial implications of payroll management requires examining both direct and indirect costs. In-house payroll processing involves expenses such as salaries for staff and ongoing training.
On the other hand, outsourcing may have predictable fees but offers savings in time and risk reduction. Hidden costs, such as fines for tax errors or system downtimes, can impact the total expense.
Finding the Best Payroll Manager for Your Needs
Selecting a payroll solution starts with analyzing your company's size and long-term goals. Small businesses may prefer outsourced payroll services due to their affordability and convenience. Consider your need for:
- Control
- Flexibility
- Integration with existing systems
Larger organizations with complex payroll needs might benefit more from in-house payroll processing.
Make Your Decision Carefully
With a reputable payroll manager on your side, you'll have no issue avoiding common issues you may have otherwise encountered. The info in our guide will help you cut through the clutter and find the ideal professional for your needs.
Established in 1997, VPM administers over 500,000 payments annually, paying more than 30,000 employees and handling $800 million in client funds. Our True Fully Managed Payroll service offers personalized, responsive support at competitive prices, making us Canada's service and value leader in payroll. You can get a free quote today to learn more about how we can help.
