Should You Outsource Payroll Services? Know The Benefits

One of the biggest reasons that companies outsource their payroll functions is for specialized expertise. Because of the many cultures, languages, and regulations these companies deal with, staying compliant is a challenge – and failing can be expensive. By using an outsourced payroll provider the risk involved is reduced.

Let us look at the key benefits;

1. Compliance with Government Regulations

With laws that govern provident fund to calculation of taxes, employee benefit programs and incentives provided to staffers, it becomes challenging for organizations to process the exact reimbursements and salary for each employee.

This is where a payroll company comes to your aid; they take care of your tax regulations and you get to avoid any penalties and Kenya Revenue Authority (KRA) audits that may arise from a careless mistake. Government regulations change every now and then and as a new entrant or SME, keeping up to date may be biting more than you can chew.

2. Saves Time

Payroll is one of those critical functions that may not directly increase sales. But carried out poorly, it can put your business in jeopardy. It can sap internal time and attention away from core activities and businesses have to comply with a wide range of laws when it comes to employees — from local to international.  It takes considerable time and attention to detail to deal with them.

It frees up time to focus on productivity and strategies geared towards meeting company goals. And as is always the case, time saved equals money saved. So, are outsourced payroll services an option you would want to consider for the benefit of your business?

3. Cuts on Costs

When considering reasons for outsourcing any business activity, cost-cutting is often what comes to mind first.

Saving on time equals to saving on cash. You will also not incur the costs of purchasing a payroll software.

Ultimately, the extent to which payroll outsourcing will cut your costs depends on how efficiently you have been administering payroll in-house. In the longer term though, outsourcing removes the variable costs associated with staff recruitment and training, as well as updating your own payroll software to meet compliance changes.

4. Outsourced payroll services promise better security

How safe do you think your company records are with in-house software? Payroll processing is a risky affair for any business as there is always the worry of tampering with company records, embezzlement of funds and even identity theft. Payroll companies invest in high caliber and the very latest systems to store and protect your organization’s’ data. This because it is a service they offer and want to put their best into it to ensure they deliver on quality; a luxury that in-house payroll processing may not get to enjoy.

Are  you are looking for a payroll service provider in Kenya that will guarantee your business free time to focus on the productivity of the organization?

Click here to see a wholesome professional service that will manage your payroll needs