Benefits of Outsourcing Payroll

3 min read
Mar 19, 2024 10:51:00 AM

There are many facets to running a successful business and while many involve the core functions of your business, the list of back-office tasks and responsibilities regarding even just payroll is just as long.

On one hand, those non-core functions such as payroll are essential for the successful operation of your business, and on the other hand, you want to spend as much time as possible on the core functions of your business. 

However, the benefit of payroll is that it does not play a role in setting you apart from the competition. It does not define your business and can therefore be easily outsourced.

Here are some of the benefits of outsourcing payroll:

Benefits of Outsourcing Payroll

Properly processing payroll is essential for ensuring compliance and ensuring that workers are compensated fairly and accurately. Errors on payroll can cost you lots of time, money, and can also stress or damage your relationship with employees. 

And in order to properly process payroll, it takes time. Certainly, modern payroll software can speed this process up tremendously using automation and paperless processes, however, it still involves time on the employer's part, and some business owners just have none to spare. 

That is where payroll outsourcing is needed. Let's talk more about some of the benefits of outsourcing your payroll.

Does Payroll Outsourcing Save Time?


Payroll can be time-consuming. It doesn’t matter whether you have two or fifteen employees, payroll can take up a significant chunk of time that could be better used on other core functions.

Handling payroll in-house will mean losing precious time at least twice a month for data entry, checking, and ensuring you’re compliant.

You can save time and focus on core functions to grow your business by outsourcing payroll.

Does Payroll Outsourcing Save Money?

It sure can!

If you choose to handle payroll in-house it will mean that you’re spending time preparing payroll, printing, generating reports, and distributing checks.

Any mistake made on the payroll will result in expenses that could have otherwise been avoided. If you choose to hire an in-house employee to handle payroll specifically, it will prove costly for any business.

Outsourcing payroll to an expert firm ensures that those costly mistakes are not made. It also ensures that you only pay for the services you need when you need them. This will reduce the cost to your company.

Does Payroll Outsourcing Help Ensure Compliance?

It's possibly the most important benefit of all!

Payroll can be quite complex, especially regarding ensuring compliance with government regulations.

There are several tax regulations and requirements that companies must adhere to. If you aren’t well-versed in how to report employment taxes to state and federal agencies, you could be subjected to audits by the IRS and subsequently penalties for non-compliance. This can be detrimental to your business.

Aside from payroll taxes, just the sheer number of laws and rules to consider when paying employees can be long. For instance, in order to process payroll in New Hampshire companies must comply with New Hampshire Minimum Wage, Pay Frequency Laws, Required Pay Laws, and more.

When you outsource payroll, it is important to choose a contractor with certified and experienced staff. Your payroll partner will ensure you are in compliance. You can avoid many of the complications and penalties resulting from non-compliance.

Does Payroll Outsourcing Improve Efficiency and Productivity

Of course!

Outsourcing payroll means that your workforce can focus on core functions to grow your business. It ensures that payments are dispersed correctly and on time so you can avoid things like short pay, late pay, and prevent disagreements with employees.

A happy workforce is a motivated workforce, and a motivated workforce is a more productive workforce.

Outsourcing non-essential functions such as payroll will help you maintain a well-oiled machine. For smaller businesses especially, you must ensure that your resources are used efficiently and responsibly. Using resources to process payroll manually may seem like the better choice to save some, but it often isn't.

How Outsourcing Payroll is a Win for Startups

If you’re a startup, you’re probably still learning the ropes when it comes to running a business. So it is important to look for ways that small businesses can improve productivity.

Business experts often advise startups to outsource non-core functions, especially in the early stages of establishing their business. For the same reasons detailed above, outsourcing payroll as a startup or even small business is a great choice, and one that can truly maximize the impact of the above benefits.

In fact, many companies often start out by outsourcing these essential business functions. Those that do, find themselves having much more time to focus on the business of their business and often aren't just more successful, but happier too.

Find a Payroll Outsourcing Company

Finding the right payroll outsourcing company to trust with your essential business functions is hard. You are putting part of your business in someone else's hands, so it is important to make sure those hands are experienced. 

At Trivantus, we have a team with a combined 252 years of experience and counting, and our award-winning payroll services have been serving clients for over 20 years. 

To learn more about how Trivantus is helping countless businesses with their payroll, contact us today. 

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