Why Outsourcing Payroll Makes Sense for Your Business, Big or Small



Payroll is a time-intensive job for any company, which is why many corporations have chosen to alleviate the stress of handling it in-house. Employees who handle payroll in-company must be kept abreast of tax and labor laws as well as individual employee deductions. This process requires extra training and time as well as being very costly to be done in-house. Outsourcing payroll is when a company hires another business to process their employee’s hourly pay and benefits in order to save valuable time and money. Here is why outsourcing payroll makes sense for businesses.


Easy Access to Information

By using a payroll provider, processing payroll becomes as easy as logging hours. Once all of the employee’s information has been entered into the software, it’s as easy as reporting how many hours each one worked with any extra notes needed like holiday time or sick leave. This information is easily accessible for the finance department by logging into the company’s account. Many payroll providers allow employees to log on and view their benefits or check the status of their deposit. Since employees have this information readily available, it is easier for them to monitor their own paid time off and there is no need for frequent check-ins with Human Resources.


Provides More Time

Outsourcing allows employees to focus more time on tasks that will generate revenue for the business. Any non-profit work, like payroll, should be considered to switch to outsourcing. This work may be essential to the company, but it does not directly benefit the business by bringing in revenue. Therefore, outsourcing relieves the burden and allows for more profit generation.


Data Reports

When outsourcing payroll, all of a company’s data is compiled into a software that becomes easily accessible and can be reviewed at any time. This allows for simple report pulling or analysis. Business owners can monitor vacation time, sick leave and overtime with ease.



When it comes to employees’ personal information, it is imperative to keep it private and secure. There is always risk of tampering when doing payroll in-house. Outsourcing provides a non-biased, secure way to complete payroll that keeps employees safe.


Government Regulations

It is easy for business owners to get lost in the ever changing world of government regulations, while maintaining their own tasks within a business. However, a business owner is still liable if mistakes and problems are found. These actions can lead to audits and penalties from the government. By outsourcing payroll, you are entrusting your payroll to a prepared team whose job is to keep up with the changes from the government.


Outsourcing can feel like a risk to business owners that are used to keeping everything in-house and under control. However, outsourcing is a very calculated and intelligent decision for a company. It is like taking the next step in a business’ work field. With all of the benefits given, outsourcing is the next obvious choice for your company’s success.


Coastal Human Resource Group, Inc. is a Human Resource Outsourcer (HRO). We serve as a full-service human resources department for small and medium-sized businesses throughout the Southeast which provides compliance screening as well as background checks. Visit www.Coastal-HR.com or call us toll-free at 1-888-757-7444. We’re here to help ensure that all your human resources needs are met.