Why outsource your payroll? 

Mis à jour le Friday 07 July 2023
Publié le Friday 23 June 2023

Managing employee payroll can be a long and tricky task for HR departments. It's a complicated, time-consuming task that requires dedicated resources with legal, tax, social security, and administrative skills. Payroll management is generally handled in-house by a Human Resources employee using payroll software or a payroll manager.  

However, companies don't always have this type of resource at their disposal, and their Human Resources departments usually already have a very full workload. They can therefore choose to outsource their payroll service to an external service provider. 

What does payroll management involve? What is payroll outsourcing? Why outsource? How do you proceed? How much does payroll outsourcing cost? We explain everything. 

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Payroll management: concept and definition. 

Payroll refers to all the processes and tasks involved in calculating and distributing employee salaries within a company. It is an essential function that ensures employees are paid accurately and in compliance with current employment regulations. 

Managing payroll involves several aspects, such as collecting information on hours worked, holidays, benefits, deductions, and applicable taxes. It also involves calculating gross salaries, deducting social security contributions and taxes, and processing expense claims, bonuses, commissions, etc. 

The payroll administration function also includes responsibilities such as keeping payroll records, issuing pay slips to employees, declaring income and contributions to the tax authorities, and making payments to the relevant employees and organisations. 

Payroll management requires in-depth knowledge of regulations and laws relating to employment, social rights, and taxation. It also requires a high degree of accuracy because any error in calculating salaries or reporting information can have legal, financial and employee satisfaction consequences. 

What is Payroll outsourcing ?

Payroll outsourcing is the process whereby a company entrusts the management of its pay to a specialist external service provider. This involves transferring all the above tasks and responsibilities to a third party. 

By outsourcing payroll, the company delegates the complex and time-consuming task of payroll management to experts with in-depth knowledge of labour and tax regulations. The outsourcer assumes responsibility for ensuring that employees are paid accurately and in compliance with applicable laws. 

Why outsource your payroll? 

Many companies choose to outsource their payroll to specialist service providers to benefit from increased expertise, more efficient processes and a reduction in the risks associated with managing payroll in-house. This allows them to focus on their core business and ensure that employees are paid accurately and on time. Let's take a closer look. 

  • Specialised expertise 

By outsourcing its payroll service, a company benefits from the expertise of professionals specialising in payroll management. They have in-depth knowledge of the regulations and laws in force, which reduces the risk of errors and non-compliance. 

  • Cost reduction 

Outsourcing your payroll reduces the cost of hiring and training in-house staff dedicated to this task. In addition, you avoid the expense of purchasing and maintaining the software and infrastructure needed to manage payroll in-house. 

  • Time saving 

Payroll management is a complex and time-consuming task. By outsourcing this function, you free up precious time to concentrate on your company's core activities and on higher added-value projects. 

  • Confidentiality and data security 

Professional payroll service providers have strict security protocols to protect sensitive information. They guarantee the confidentiality of employees' personal data and implement advanced security measures to prevent the risk of data breaches or theft. 

  • Flexibility and scalability 

Payroll outsourcing gives you a flexible solution tailored to your specific needs. Whether you're a small, fast-growing business or a large enterprise with complex needs, an external service provider can adapt and grow with you. 

  • High-quality customer service 

External payroll service providers usually provide dedicated customer service teams. You can get quick answers to your questions, technical support and personalised assistance to help you through every stage of the payroll process. 

How to outsource your Payroll ? 

You've decided to outsource your company's payroll. This is the first step on the road to outsourcing this service. What are the next steps? 

At Helvetic Payroll, these are the steps we follow with each of our customers: 

  1. Needs assessment: Identify your company's specific payroll management needs, such as number of employees, types of remuneration, deductions, benefits, etc. 
  1. Search for providers: carry out in-depth research to find reliable and reputable payroll service providers. Compare their offers, rates, experience and reputation in the market. 
  1. Selecting the service provider: Choose the service provider that best matches your company's needs and offers quality services. Take into account criteria such as expertise, reliability, regulatory compliance, data security and customer service quality. 
  1. Defining the terms and conditions: Once the service provider has been selected, draw up a clear and detailed contract setting out the terms and conditions of the payroll outsourcing. You should also draw up a power of attorney so that the service provider can start work in full compliance. 
  1. Data migration: Provide the service provider with the information and data required to migrate your company's payroll process to their system.  
  1. Testing and validation: Before moving on to large-scale use, carry out tests with your service provider. Validate the results and make sure everything is in order. 
  1. Ongoing monitoring and communication: Maintain regular communication with the service provider to ensure that payroll is managed efficiently and compliantly. Share updates and changes relating to employees, regulations or internal policies. 

How much does payroll outsourcing cost? 

The cost of payroll outsourcing can vary depending on a number of factors, such as the size of your business, the number of employees, the complexity of the payroll, specific requirements and additional services required. 

Don't hesitate to contact our team for more information on this subject. They will be delighted to help you! 

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