What you need to know when outsourcing payroll

In the long-term, you can’t keep managing payroll in the old way. Think about it. Currently, you have 10-15 employees. You only have to compute and handle these employees’ payroll, yet it is still too much. So, eventually, you will end up hiring an HR team. You will invest in their pay, management and training. If you utilize an online payroll provider, you pay only for the services you use. There’s a predetermined sum per month that you pay for the services offered to your outsourcing payroll partner. Therefore, payroll outsourcing is much more cost-effective and within your budget.

Payroll outsourcing process is basically a service provider that uses paid workers’ administrative and conformity tasks. It is important to note that payroll services are only that, and do not offer a local employer of record for the foreign company. This implies that local incorporation is still needed and the other aspects of employing workers must be handled DIY or by other experts.

What does an outsourced payroll provider need to have?

Feasibility: Payroll partnership outsourcing should be hassle-free and feasible. The interface is straightforward and without any problem you can work around it.

Features: Your outsourcing partner should be able to help you with end-to-end payroll procedures when it comes to features. This includes payroll calculations, deductions, employee management, payments, payroll tracking, tax payment, payroll rules tracking, etc.

Support: In payroll, when someone else is handling your activities, you need consistent support from your payroll provider. They should be able to answer when your employees have any questions. When your HR has questions, they should get support for it.

Integration: If you have accounting software or attendance program, search for an outsourcing payroll provider which integrates with these tools.

Self-service employee: In addition to all of the above, a self-service portal is needed for employees. Then, your employees would get the power to check salary status, download pay-slips, evaluate tax deductions, etc.

What payroll performance metrics do you need to track?

Eventually, the moment has come for your payroll department to assess its success. Evaluate the following performance measurements:

Running time: It takes time to compute the payroll even if you have the greatest outsourcing partner. You need to know how much time you spent on payroll and how much time you saved. After this, access the cost associated with this time spent. This will give you an idea of the improved efficiency.

Payroll cost: You have to check the cost of payroll once you have computed the time to run. This involves payment you send to the payroll partner before outsourcing in comparison to payroll costs. This also includes time spent, payroll errors, penalties, mistakes, overtime hours, etc. It will also offer you an indication of how your performance has increased and your costs lowered.

Labour Cost: The major benchmarking for payroll efficiency is payroll labour costs. How much can you afford these employees? Take this money now and compare it to the costs you pay to your payroll outsourcing provider. As we calculate each statistic for money, you get a notion of improving performance.


The payroll outsourcing partner helps you simplify your activities and lessen the stress of this crucial job. Your team will be able to focus on vital company tasks with this aid and direction while online payroll services focus on their staff. In this approach, you may not only reduce overheads but also keep your staff delighted and pleased.

If you need an outsourced payroll partner, then there’s no better choice than Talentnet . Over the years, we have served multiple national and international corporations. We have created an everlasting bond with these businesses due to our quick, accurate processing and innovation-driven approach.

If you need to outsource payroll services, then let’s get on a call and discuss how we can proceed.

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