In-House vs. Outsource
Accurate and timely payroll management is paramount to the successful operation of any business, whether a company has five employees or 5,000. If employees are not paid on time- and if employers fail to follow state and federal directives for employee classification, payroll tax filing, and other regulatory issues - management can soon find itself facing critical challenges, from high turnover to steep fines.
Although employers are increasingly comfortable outsourcing human resources functions, such as recruitment and benefits administration, many choose to keep payroll in-house. Small and mid-size businesses (SMBs), in particular, often find that the tools and support provided by off-the-shelf software solutions and software as a service (SaaS) providers are more than sufficient to handle payroll functions internally. However, technology is not without it challenges, including the cost of purchasing and maintaining systems, data security issues, and incompatibility with other HR platforms.
Further examine the pros and cons of both payroll management and outsourcing so that you can make an informed decision about with path is best suited for your organization.