Mastering your payroll: in-house vs outsourced

Is payroll the most crucial operation in a business? Well, people won’t work for free!

However, the stress of juggling deadlines, maintaining a keen eye for detail and staying up-to-date with ever-evolving legislation is without a doubt tough.

Well, what if this burden could be lessened? What if you could delegate these tasks to ensure accuracy, punctuality and compliance without lifting a finger?

Enter the world of payroll outsourcing.

But what’s actually the right option for your business?

The payroll conundrum: in-house or outsourced?

Choosing between in-house payroll and outsourcing is a huge decision, and there are pros and cons to both options.

On one hand, an in-house payroll system can, in some cases, be more cost-effective and give you unparalleled control.

You have your team, your processes and your systems.

But it also comes with challenges.

You need to recruit and retain payroll professionals, keep up with changes in legislation and ensure your payroll is compliant and accurate – a challenging task without the right resources.

Alternatively, when outsourcing to a managed payroll service, you have a team of experts at your disposal, ready to handle your payroll needs and compliance requirements.

Remember, whether you choose an in-house system or a managed service, the goal is the same: ensure your payroll is accurate, compliant and efficient.

Up in the clouds: why your payroll system should be there

If added control and managing payroll in-house is your desire, then the cloud needs to be front of mind.

With the rapid changes in legislation and the need for frequent alterations, a cloud-based system is essential, allowing for easy access and real-time updates.

Plus, having cloud software, which can connect with other systems like HR, provides a single source of truth for your data, reducing errors and improving efficiency.

Learn more about HR and payroll integration in this blog.

How payroll outsourcing works

With payroll outsourcing, you provide the raw data (hours worked, rates of pay, employee details), and the managed service takes care of the rest.

They calculate the pay, deduct the taxes, distribute the payslips and ensure everything is reported correctly to the tax authorities.

If there are any queries or issues, they're on hand to sort them out.

Outsourcing is like having a team of payroll experts at your disposal, ready to take the stress out of payroll management.

Which should you choose?

So, you've reached the end of the road, and it's time to decide your payroll.

It's a hefty task, but don't fret.

Remember, it’s all about weighing the pros/cons and considering what will work best for you.

As you lean back in your chair, coffee in hand, remember that you're not alone in this – there are plenty of resources and experts ready to lend a hand with navigating the intricacies of payroll management.

Shameless plug, but at IRIS, we offer both amazing payroll software and unbeaten managed payroll services, which you can find + our team is always on hand to discuss which option suits you best.