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Here’s Our Top 5 Reasons to Outsource Your Payroll

By Mirella Nielsen
Business Consultant | CSC Global Financial Markets
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Whether you’re a start-up business or one that has been around for years, the Human Resources (HR) function—including managing payroll—should not be underestimated. The payroll process can be confusing, time-consuming, and even costly. Outsourcing may be the appropriate solution. Below are my top five reasons for outsourcing your payroll. 

1. Increase time

Depending on the jurisdiction, managing the payroll can be complex and time consuming. When this task is outsourced, the hours spent on ensuring the company is compliant, keeping up with changing regulations, and training staff on internal systems is eliminated. In return, this time can be spent focusing on the core capabilities that drive your company’s growth.

2. Reduce cost

Outsourcing payroll tasks is often the more affordable solution for many small to medium-sized business, as related expenses such as personnel, software, and training are eliminated. Furthermore, the hidden costs that are linked with incorrect payroll handling should be considered, such as penalties and fines for late filing to authorities.

3. Focus on core business

Outsourcing is an increasing trend with nearly every business outsourcing at least one critical function, such as website hosting, accounting, or HR services. Partnering with a professional provider to handle your payroll allows your organization to focus on core capabilities and invest in strategic resources to increase the value of your company.

4. Mitigate risk

A critical task of a payroll provider is to ensure your company is following local rules and keeping up to date with regulations. Especially in jurisdictions like China, this is not an easy task, as regulations and local laws are complicated and dynamic. With the help of a professional payroll provider, you’ll have the assurance and confidence in your preparation and filing of payroll-related paperwork and tax matters.

5. Improve security

Professional payroll service providers invest significantly in specialized staff and software to maintain a robust and fully secure payroll system. It would be detrimental to any business if confidential information were to mistakenly be made available to individuals not meant to see it. By outsourcing the task of calculating and distributing of this data, it’s possible to limit the risk involving a breach of confidentiality.

In summary, trusting experts to handle your payroll can reduce time, save costs, give peace of mind and allow any company to enjoy higher levels of security than handling these services in-house.

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CSC is one of the world’s largest privately held businesses to offer corporate administration and international expansion services. Within the APAC region, we have been serving our clients with payroll solutions for over 40 years. Our HR and payroll services include preparation of monthly payroll slips, managing required pension contributions as well as employment visa applications, and so on.

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