Benefits of In-House Payroll System
Hello again,
This post is for small to mid-sized companies who may be vetting an in-house payroll system.
The following is summarized from Dresser & Associates. We hope you find it useful.
“Once upon a time, only large companies with sizable budgets and equally large payroll departments could afford to process in-house.
But new technology and the development of affordable HR and payroll software has changed the landscape for small and mid-sized business – including the need for (and perceived cost-savings of) outsourcing. Here’s a look at the benefits of processing payroll in-house.
Cost Savings
Cost savings is perhaps the most important factor when evaluating the benefits of in-house payroll vs. outsourcing. At first glance, outsourcing seems cost-effective.
But a closer look reveals a number of fees that can really add up. There’s often a base account fee plus a fee per paycheck, along with additional fees for tax-related paperwork or services.
And if you need a report that you can’t produce with their standard reporting tool, tack on another fee. More likely than not, these fees increase over time and you have little control over it.
Although the up-front cost of doing payroll in-house is larger in the first year because you need to purchase and implement payroll software, the simple fact is that processing in-house is much cheaper than outsourcing over the long run.
And that ‘long-run’ means recovering your investment in just a couple of years in a lot of cases.
Better Control of Information
In addition to significant cost savings, in-house payroll offers far better control over the entire process.
For instance, control of information means that instead of exposing sensitive information about salaries, benefits and work status to an outsourced provider, you’re able to keep all that private information in your own secure in-house database.
Better control over the process means that instead of bending over backwards to accommodate your outsourced provider’s schedule, you can make last minute adjustments – like adding overtime or adjusting shifts – and still pay your employees on-time.
All without the typical fees and penalties assessed by most outsourced providers.
Better Reporting
Good business decisions require timely and accurate information along with control over the data. In-house payroll software can provide easy access to built-in reports that allow you to analyze every aspect of your payroll – from benefit costs, to salary trends and seasonal employment numbers.
Better data control enables more effective business decisions without the added fees and delays of customized reports from outsourced providers.”
With 35 years of payroll processing experience, Passport Software provides comprehensive yet easy to use in-house payroll software for small businesses and medium sized companies.
The payroll module is part of Passport Software’s accounting software solution.
Call 800-969-7900 – Or Contact Us. We are here to help.