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The Hows and Whys of Outsourcing Payroll

As fulfilled and engaged as your employees may be with their jobs, any paycheck issues that come up are sure to frustrate them. Some companies have dedicated payroll departments while others find it helpful to outsource this function to one of many companies that specialize in payroll. How do you know which option is right for you? Here are some things to consider.

  • How big is your company? You might think the size of your company determines whether outsourcing payroll is a good option. But actually, the answer isn’t cut and dry. Small companies like to use payroll services so they don’t have to employ a dedicated payroll department. Larger companies like to use them to maintain consistency in the process and have a dedicated point-person for an extra layer of checks and balances.
  • Do you need more than just payroll? There are other reasons to consider an outside vendor, especially if your small company also wants to outsource benefits administration or other HR services. Many employers will consider a service such as a Professional Employer Organization (PEO) or an Administrative Services Organization (ASO), either of which can outsource your entire HR function. Read our white paper on the differences between PEOs and ASOs.

Have more questions about outsourced payroll? Just ask us — we are happy to help.