Affordable Services
Rapid Implementation – Ready in 2 Days!
March 28, 2018
Outsourcing payroll to Staff Payroll enhances your payroll process, ensures accuracy, and helps you reduce costs, whether you currently manage payroll in-house or through another provider.
Staff Payroll follows a process-driven approach, ensuring consistency and accuracy whether you have a one-person payroll or thousands of employees. Each client receives a dedicated payroll process menu, defined during implementation and updated as needed. Before every payroll run, makers and checkers follow this step-by-step process strictly, ensuring that all standard and special cases are handled with precision and care.
Just like automated manufacturing, where complex tasks are broken down into smaller, specialized processes handled by qualified operators, ensuring high quality and cost efficiency, Staff Payroll applies the same principle. Our structured payroll process guarantees accuracy, compliance, and efficiency, allowing us to deliver top-tier payroll services at highly competitive rates—giving clients the best value without compromising quality.
How to Calculate In-House Payroll Cost?
You can estimate in-house payroll costs using the following formula:
Payroll Cost=(Total man-days used for payroll tasks in a month/22)×Monthly basic salary of payroll staff×1.5
The 1.5 factor accounts for additional expenses such as staff benefits (leave, medical, etc.) and other management costs.
Additional Benefits of Outsourcing Payroll
- Reduction in full-time headcount, lowering long-term labor costs.
- No hassle of staff replacement when payroll employees resign.
- Increased efficiency and compliance without the risk of errors or penalties.
Now that You Have Your In-House Payroll Cost & Vendor Fees – What’s Next?
With both figures in hand, follow these steps to make an informed decision:
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Compare Costs Directly
- If outsourcing is cheaper, you already have a clear advantage.
- If in-house payroll seems cheaper, consider hidden costs (compliance risks, penalties, staff turnover, etc.).
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Evaluate Efficiency & Risk
- Does your in-house payroll team keep up with compliance updates?
- Have you faced errors, delays, or government penalties in the past?
- Is payroll staff turnover affecting continuity and accuracy?
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Assess Business Priorities
- Would outsourcing free up valuable internal resources for business growth?
- Does your current vendor provide better data security and compliance than in-house?
- Are scalability and automation important for your payroll operations?
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Negotiate with Your Vendor
- If outsourcing looks beneficial, discuss with your payroll provider for better rates or customized services.
- If you decide to switch providers, compare different vendors to find the best fit.
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Make the Final Decision
- If outsourcing provides a cost-effective, risk-free, and efficient solution, move forward.
- If in-house payroll remains the best option, consider improving automation and compliance to reduce risks.
