4 Main Advantages of Outsourcing Payroll
Payroll Solution

4 Main Advantages of Outsourcing Payroll

By ReenShm

Regardless of what types of business a company is running, it is undeniable that payroll is one of the crucial elements in a business that must be managed properly. Payroll is more than simple calculation, there are statutory and tax regulations that need to be understood. Errors or delay in payroll may lead to unhappiness. Therefore, it is crucial to ensure payroll is managed by professionals that are well versed in payroll policy and statutory requirement.

This article is targeted at Small Medium Enterprise, SME, who, for various reasons have not considered payroll outsource before. Intuitively, SME tends to run payroll in-house as they consider the workforce to be too small to outsource it. However, many aspects of payroll outsourced are well suited to SME setup: time and cost saving. Instead of hurting their bottom line, outsourcing is actually improving their bottom line.

Here are the four (4) advantages of outsourcing your payroll:


Payroll processing usually requires a person to pay great attention to detail. The complexity of payroll is a function of the number of headcount and types of variables in payroll. Clearly with increased complexity, increase the amount of time to prepare and cross-check. By outsourcing your payroll to a professional payroll vendor, you lessen your workload. In this way, you can deploy the time to focus on other crucial tasks.

Cost Saving

In business, time is money. When you save time, you also save money. Includes all payroll tasks every pay period; calculating employee hours, deductions, paid time off, sick leave, printing, signing, distributing paychecks, generating reports for in-house and accountant use, preparing and sending payroll taxes and return to government agencies. Certainly, it takes quite some times to do it, especially when the number of headcounts is large. Therefore, when comparing the amount of time spend on payroll each pay period and the costs of outsourcing, there is a great deal of reducing cost when you take those tasks off from your workload.

More importantly, the cost structure and customizing payroll are lower than when you deploy it to dedicated headcount to prepare. For an SME whose headcount of size 50 employees. Our clients typically save up to 40% of salary every month not including saving on statutory payment. Go on, it makes good business sense to outsource payroll!

Better Security

Maintaining employees’ confidential information is important. The chances of data being used or manipulated are always there and must be avoided. Within employees themselves, there is always a possibility of identity theft, embezzlement and tampering the timesheet for their personal gain.
Not forgetting to keep your data in a secure environment in order to avoid any exploitation. Our HR software store data on highly-secured servers that use cutting-edge encryption technology, along with redundant data backups. This is a great way to ensure the data is safely stored and protected from data theft.


Dealing with payroll requires a great understanding of government rules and regulations.  A simple mistake can cause you to be charged with a penalty. On top of that, government rules and regulation change from time to time. Therefore, it is wise to have a professional payroll company to handle it because we will keep the system up to date. Finally, all our payroll professionals are trained properly to execute payroll on time and accurately. By hiring a professional payroll company like Alchemy, you can tap on this expertise!

Running a business in today’s world is challenging enough. It, therefore, makes good business sense to consider payroll outsourcing your payroll preparation to a professional. This helps you to reduce cost, improve cash flow and allows you to deploy your valuable resources to where your business needs it.