Can outsourcing your payroll save you money?

Yes! Managing payroll can be costly and time consuming for an employer and outsourcing your payroll can save you money.

Compared to the costs of employing someone, outsourcing your payroll to a third party can save you money. The average salary in Ireland for a payroll analyst is between €30000 and €40000 per year. At its cheapest, this works out to be €115 per day. Let’s say it takes one day’s actual work per week to process your payroll for 100 employees. This works out at €6000 per year in labour costs to run your payroll in house.

Payroll software costs is another thing that adds up. Even the cheapest internet based payroll package will bring this cost up to €6500/€7000 per year.

Most outsourced payroll bureaus will be significantly cheaper than this. You will generally pay a fixed fee, won’t have to worry about software & annual maintenance costs, staff training & absences.

It’s also important to bear in mind that outsourced payroll is not just for big business. Many small companies can benefit as it give you the opportunity to concentrate on growing and running your business, especially if you are not familiar with payroll and payroll compliance. Most payroll bureaus can accommodate growing businesses.

Apart from costs, other reasons to outsource your payroll include:

• Improved efficiency and productivity – allows you and your employees to focus on core business areas.
• Compliance – staying on top of Revenue changes and government legislation.
• Minimize Errors – qualified payroll analysts reduce the risk of mistakes.
• Improved Security – secure data storage and transfer.
• Scalability – payroll outsourcing can accommodate growing businesses or employers who experience fluctuations in employee numbers.

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