5 Advantages of payroll outsourcing

Payroll management is one of the most difficult and delicate processes in a company Spain is one of the countries where payroll management is the most difficult. However, many companies still prefer to manage their workers’ salaries themselves. In this article, we will look at the advantages of outsourcing payroll.

Cost reduction

Managing payroll can be costly for many companies. The need to have staff specialised in these processes, in addition to contracting the technologies needed for payroll is a high cost that many companies cannot afford. With outsourcing, companies forget about these costs. Outsourcing to a back office company reduces costs, allowing the employer to invest in what is really important for the business.

Putting yourself in expert hands

Having an external company manage your company’s payroll means putting yourself in expert hands. These companies specialise in these administrative processes. As a result, they can guarantee that payrolls will reach employees in a timely manner. In addition, these companies will always be up to date with the different regulations related to payroll.

Employee information

Payroll outsourcing helps employees to be more aware of their salary status. One of the most complex pieces of information to convey in payroll is withholdings. While we all understand the difference between net and gross, it is more complex to know what taxes are withheld. Payroll outsourcing companies often offer modernised payroll templates, in which the withholdings are clearly explained to our employees.

Control of personal data

Another advantage of outsourcing is that the employee will have more control over his or her data. Having the facility to change our personal data when necessary, such as moving house, changing the account where we want to receive payments, is easier with outsourcing. Instead of having to go through the Human Resources department, the employee can make the changes himself, which simplifies this process and increases the productivity of this department. In addition, these companies have very strict data protection legislation, so we also ensure that personal data is handled correctly.

Using payroll as a communication tool

Payroll is the main form of communication between the employee and the employer. With a smart payroll, we can use this tool to our advantage. Remembering facts such as a pay rise, a promotion or a reward for goals achieved is easier with a modern payroll model, which allows us to emphasise these facts.

At Vasalto, we have been working in payroll outsourcing for more than 30 years. This means that we have extensive experience in the sector, in addition to a series of our own 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 are interested in finding out more about payroll outsourcing, at Vasalto we will be delighted to help you. Contact us to get to know us and see how we can help your company.