What is payroll outsourcing, and how can it help your company?


As an owner of a business who employs other people, you’re probably familiar of that time of the month… payday. This usually means lots of paperwork and other financial data that needs to be sent to the various members of your company and so forth. But you may have also considered outsourcing payroll duties to another company to offload some of that work. We study payroll outsourcing in further depth.

What is payroll outsourcing?

Outsourcing payroll is when a business or company allows a third-party company to manage their payroll administration and paperwork. This will be in exchange for a nominal fee per employee. Some popular third-party payroll companies in Melbourne include Payroll Service Australia (payrollserviceaustralia.com.au),

What does outsourcing payroll offer?

Payroll services general offer services like: calculating payroll and tax payments, printing and delivery of paychecks and regular management reports. Depending on the business, they can send out weekly, bi-monthly or monthly paychecks and reports. Some also offer payroll software to automate and update employee benefits.

Why consider payroll outsourcing?

A business will consider outsourcing payroll for a few primary reasons: simpler payroll system, better knowledge of paying local and federal taxes and ease of mind,

  • Simpler Payroll system

Outsourcing payroll may have simpler systems and requirements than managing it yourself. For example, instead of having to figure everything yourself such as employee taxes, local and federal taxes and outstanding student loans, you can get the outsourcing company to handle this. read more about employee taxes by clicking here

  • Better knowledge

Payroll outsourcing companies will be specialists in understanding what taxes and repayments are owed from each employee. As each employee will most likely have different payments to be deducted from their paycheck, the payroll service will take all of this into account.

  • Ease of mind

All of these factors (simpler payroll system and better knowledge) will put the business requesting the payroll service ease of mind as keeping the payroll procedure in-house can become a hassle. This is especially true if your company is expanding rapidly and have other priorities to handle.

A small business with 1-5 employees may prefer to keep outsourcing payroll in-house as it may not be financially viable to have payroll service. However if a company has more than 100+ employees, it will be difficult for the payroll administrator to keep track of each employee’s repayments or taxes due. It is always worth comparing local and multinational companies in terms of price and services offered before biting the bullet.


Payroll outsourcing for your business can be worth its time and investment if researched correctly and an efficient payroll service is chosen. If your business has hundreds of employees with varied shift patterns and different paycheck releases throughout a month, then payroll services is definitely worth considering. This Is due to their superior knowledge, simpler systems and ease of mind for your business. If you consider payroll outsourcing, do be sure to compare prices and services before committing to an outsourcing company.