Reasons Why Companies Outsource Their Payroll

Do you find in-house management of human resources, accounting, payroll and other financial obligations a walk in the park? If YES, then you’re an alien living on planet earth. The activities mentioned hereinbefore are proven to be highly complex and time consuming, especially if you intend to complete them simultaneously. Many businesses are still stuck with their in-house solutions to these tasks, and they’re unable to realize the risks involved beforehand. These routine administrative activities eventually get intricate, and will drain them of their productive time.

Payroll, human resources and accounting functions are among the most commonly outsourced functions in many organizations. They’re non-core functions, since they are not a profit centre and don’t differentiate a business from its competitors.

Most businesses don’t leverage the power of outsourced payroll service providers because they probably don’t have clear reasons why they ought to go for it. For that reason, we’ve compiled the top 5 reasons why you need to outsource your payroll.

  1. Complex calculations and rules

It has become highly challenging to process employees’ salaries and reimbursements with top accuracy. This is due to a number of factors such as tax computations, employee benefit programs, high employees’ turnover, many rules and by-laws to consider, etc. Your employees also expect that you confidently and clearly answer all the queries regarding their payroll.

You could be able to do all this in-house. However, how sure will you be that everything has been taken care of the right way? Is there top notch accuracy in your computations? Are you in a strong position to do an error-free audit of your payroll processing?

  1. Better and Efficient reporting

Whether you process your payroll in-house or with an outsourced payroll processing company, there are some common comprehensive reports that you can’t overlook. It may not be possible to generate such reports with your in-house software solutions. Moreover, it may not be fast enough for your IT team to figure out and develop payroll software to cater for your needs. So the lender of last resort would be payroll processing companies, who provide a wide array of the reports you require.

  1. Access to Payroll Experts

Payroll processing firms employ experts who can confidently answer all your employees’ queries regarding payroll. Therefore, your employees will have a single point of direct contact.

Payroll outsourcing companies go an extra mile of even coming to your office and conduct training whenever there are crucial changes in the payroll computation process.  The payroll experts also conduct one-on-one consulting sessions with the management.

  1. Cost savings

Wondering how you can enjoy cost savings with outsourcing your monthly payroll processing task? May be you’ll think of outsourcing your payroll because of the hassle it proves to be.  At a glance, you might not realize the cost saving benefits you’ll enjoy in the long term. However, you actually save on the personnel that you employ or deploy to take care of the payroll preparation.

  1. Professional payroll processing services

Outsourced payroll processing companies offer payroll administration services at all levels – from basic to complex. They employ high level professionalism when it comes to maintaining individual payroll files and doing timely computation of all the salary and reimbursements. Employees are also served with printed or electronic paycheck advices, and other documentations, with great ease.

Additionally, payroll service providers also generate the annual income statements for each employee. These statements are usually required for tax related purposes. As required, the documentation is done timely, professionally and with full confidentiality. With such professional services, employers can focus on their core business and other HR processes.


Now you know that payroll outsourcing is capable of saving you from all the hassle of changing rules, and/or doing individual payroll calculations. It also shifts, from you, the weight of being the single point of contact for your employees’ day-to-day queries regarding their payroll. You are also confident of getting comprehensive monthly/annual reports and direct access to the experts in payroll. It will not only save you time and energy, but also money in the long term.

So going forward, you’ll have an enhanced peace of mind and more productive time to focus on the core business.

Thousands of companies have already been convinced to switch to an outsourced payroll processing solution. So you’re waiting for? Make up your mind and get started today!

AMSOL offers improved, hassle free, professional, one-stop shop for payroll processing, as well as HR management outsourcing in Africa and beyond.

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