Exploring the Benefits of In-House Payroll
Once upon a time, only large companies with sizable budgets and equally large payroll departments could afford to process payroll in-house. But new technology and the development of affordable HR and payroll software like Sage HRMS has changed the landscape for small and mid-sized business … including the need for (and perceived cost-savings of) outsourcing your payroll. Here’s a look at the benefits of processing payroll in-house.
Cost Savings of In-House Payroll
Cost savings is perhaps the most important factor when evaluating the benefits of in-house payroll vs. outsourcing. At first glance, outsourcing payroll seems cost-effective. But a closer look reveals a number of fees that can really add up. There’s often a base account fee plus a fee per paycheck, along with additional fees for tax-related paperwork or services. And if you need a report that you can’t produce with their standard reporting tool, tack on another fee. More likely than not, these fees increase over time and you have little control over it.
Although the up-front cost of doing payroll in-house is larger in the first year because you need to purchase and implement payroll software, the simple fact is that processing payroll in-house is much cheaper than outsourcing over the long run. And that “long-run” means recovering your investment in just a couple of years in a lot of cases.
Better Control of the Information, Process, and Reporting
In addition to significant cost savings, in-house payroll offers far better control over the entire payroll process. For instance control of information means that instead of exposing sensitive information about salaries, benefits and work status to an outsourced payroll provider, you’re able to keep all that private information in your own secure in-house database.
Better control over the process means that instead of bending over backwards to accommodate your outsourced payroll provider’s schedule, you can make last minute adjustments – like adding overtime or adjusting shifts – and still pay your employees on-time. All without the typical fees and penalties assessed by most outsourced providers.
Good business decisions require timely and accurate information along with control over the data. In-house payroll software like Sage HRMS Payroll provides easy access to built-in reports that allow you to analyze every aspect of your payroll – from benefit costs, to salary trends and seasonal employment numbers. Better data control enables more effective business decisions without the added fees and delays of customized reports from outsourced providers.
Does In-house Payroll Make “Cents” for You?
If you’re currently outsourcing payroll. We’re happy to look at your current payroll costs, run an ROI calculation, and help you determine whether bringing your payroll in-house makes dollars and sense.
For more information read a previous blog post: 10 Key Factors To Consider When Selecting An In-house Payroll System