What does payroll outsourcing involve?

Payroll outsourcing is a way to reduce the workload in Human Resources departments. It consists of hiring an external company, which will be in charge of managing all the processes related to the payroll of our employees.

In many cases, companies decide to handle payroll internally. Being a mechanical process in which, at first glance, there should not be much of a problem, employers decide to manage it themselves. However, taking payroll in-house also involves a number of risks that are easily avoidable with outsourcing.

Risks of having payroll in-house

Managing payroll can be costly for many companies. First of all, it is necessary to hire personnel specialized in these processes. It means having one or more people on the payroll who are up to date with payroll regulations to avoid incurring in infractions or submitting payrolls that are out of date. In addition, these personnel will need a number of technologies to help them automate these processes. In many occasions, the cost of having these people and hiring this technology does not correspond to the benefits it brings to our company, especially in smaller companies.

In addition, we can see that there are efficiency issues. Not having an optimized system for submitting them can mean that these departments spend more time than necessary to do so, taking time away from the issues that are important to our company.

The solution: outsourcing payrolls

To avoid these risks, there are companies known as Back Office companies. These companies, such as Vasalto, offer their services to outsource the payroll process. They have extensive experience in this sector, as well as a series of computer systems that streamline this process. Thus, they can take on a large payroll load from different companies, saving them a great deal of time that they can invest in other matters of greater importance to them.

Having an external company manage your company’s payroll means putting yourself in expert hands. These companies specialize in these administrative processes. For that reason, they can offer guarantees that the payrolls will reach the employees in due time and form. In addition, these companies will always be up to date with the different regulations related to payroll. Issues such as data protection may be overlooked by someone who is not familiar with the payroll process, but not by someone who is an expert in the field.

At Vasalto, we have been working with payroll outsourcing for more than 30 years. This gives us extensive experience in the sector, in addition to a series of proprietary computer systems that allow us to manage more than 40,000 payrolls every month. In addition, we also have the best legal and accounting advice, to offer our clients the best possible service.

If you find yourself in a situation similar to the one we have seen in this article, at Vasalto we will be delighted to help you. Contact us to learn more about outsourcing and to see how we can help your company.