Should I outsource my payroll?

Payroll is a good candidate for outsourcing when the process is taking too much internal time, the business lacks cover for holidays or absence, or the person running it isn't confident with payroll changes and deadlines.

A proper service should have a clear timetable for changes, starters and leavers, produce the payroll reports and employee documents, submit the required payroll information and deal with agreed pension administration where included.

Outsourcing the processing doesn't remove the employer's responsibility to provide accurate information, approve the payroll and make payments on time. The provider can run the process; the employer still owns the decisions.

Payroll has to happen on time every time. When comparing providers, ask who covers the work if the usual contact is away, how data is protected and how quickly corrections or urgent changes can be handled.