Five Reasons Why Companies Outsource Their Payroll

Managing accounting, human resources, payroll, tax, and other financial responsibilities at the same time is a complex & time consuming affair. Many businesses still do all of these activities in-house, not realizing that such routine administrative work is getting intricate by the day, and is a big drain on their time.

Accounting, payroll & human resources are some of the most commonly outsourced company functions. Here are the top 5 reasons why you should outsource your payroll.

Complex rules and calculations

With so many rules, by-laws, provident fund percentages for different age groups, employee benefit programs, employees joining & leaving and taxes to consider, it is becoming extremely challenging to process the exact salary and reimbursements of each employee. You must also be able to answer your employee's queries about their payroll confidently and clearly.

Even if you can do all this by yourself, how can you be sure that everything has been taken care of? How will you verify the accuracy of your calculations? Do you have a safe and secure mechanism to do a proper audit of your payroll processing?

Better reporting

Payroll processing companies provide a wide array of reports that address the most common reporting requirements. Such comprehensive reports may not be possible with your in-house payroll software or may take a long time for your IT staff to figure out or develop. You can quickly get the outsourcing company to deliver specific & ad-hoc reports for your custom analysis.


Direct access to experts

Outsourcing companies are staffed with payroll experts who can answer your employee's queries on the phone, and act as a single point of contact for your employees.

They can also conduct standard or specialized training sessions for your staff whenever there are changes to the CPF rules, taxation and your employee benefit programs. Most payroll outsourcing companies can even come down to your office to conduct in-house training sessions or have a hands-on consulting session with the management & staff.

Cost savings

Outsourcing the monthly payroll processing often saves you a full headcount. This resource can then help you in sales, customer services, or you can simply enjoy cost savings. In fact, cost saving is a by product of payroll outsourcing. Most companies outsource their payroll because of the hassle it proves to be, not realizing that by outsourcing, they are actually going to save costs in the long term.


Professional payroll processing services

Payroll outsourcing companies provide basic to complex payroll administration for businesses. They maintain individual payroll files for each employee and compute all the salary and reimbursements on time. Printed or electronic pay advices via the internet are delivered to each employee, and annual bonus, increments etc. are processed with ease.


On top of this, the annual income statements required for tax purpose is generated for each employee professionally, timely and with full confidentiality. Such enhanced services ensure that HR professionals can focus on real HR work like staff training & development or compensation planning.



Payroll outsourcing can save you from all the challenges of changing rules, doing individual payroll calculations and having to answer your employee's every day questions about their payroll. You get comprehensive reports, direct access to payroll experts, and save time and money in the process.

It also results in having a greater peace of mind, and more time to focus on the business.

Such wide array of benefits has convinced thousands of companies to switch to an outsourced payroll solution.

So what are you waiting for? Look for a good payroll outsourcing firm, and get started today!

PayrollServe offers hassle free, one stop shop service for outsourcing your payroll and HR administration in Singapore, China and other Asian countries.

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