As an employer, there are several different ways in which you can manage your payroll. You can manually process payments or use payroll software – or you can use a payroll bureau or an outsourced payroll provider. Each option has its own advantages, and it’s important to assess which one aligns best with your business needs. In this post, we’ll focus on the differences between using a payroll bureau and outsourcing your payroll, exploring some of the unique benefits of each, so that you can select the right one.

Using a payroll bureau

Using a payroll bureau involves outsourcing payroll support while still having control over your payroll data. It is a hybrid option between using payroll software and outsourcing – you get to choose which payroll functions you want to outsource and which  functions you want to do in-house.

Flexible support

A payroll bureau can take on the admin tasks you no longer want to do, while allowing you to continue any tasks you still want control of. For example, you could choose to still manage employee benefit, while a payroll service handles wage slips and tax.

Expert advice

As part of a payroll bureau service, you typically have 24/7 access to employment law experts who can answer any questions you have and help you make sure your payroll is compliant. 

Other HR services

Payroll bureaus are sometimes part of larger HR services and you may have the option to customise your package by outsourcing other HR services such as creating health and safety documentations and providing advice for employee legal issues like dismissing staff. 

Outsourcing your payroll

Outsourcing your payroll involves paying a third-party company to completely take over all payroll admin tasks, as well as having complete control over your data. It is an ideal solution for business owners that don’t want anything to do with payroll admin. 

Time savings

Completely outsourcing your payroll can save you a lot of time – you don’t have to handle any payroll admin tasks and use this time to focus on other elements of your business. 

Cost-effective

Outsourcing your payroll is often more cost-effective than using a payroll bureau service – especially if you are a small-to-medium-sized business. It can cut out the need to pay for payroll software or in-house payroll staff. Price plans typically depend on the size of your company and are scalable.

Advanced technology

Outsourced payroll services typically use state-of-the-art technology to automate processes and provide up-to-the-minute reports. When it comes to services like handling benefit packages, an outsourced payroll service will be able to accurately keep track of absence, holiday, overtime, pensions, sick pay and investment contributions, automatically flagging up any issues for you.

Which is the best payroll option?

A payroll bureau gives you the chance to work with a team of experts to jointly manage your payroll. It is a good option for those that want on-demand third-party support while retaining some control.

Outsourcing your payroll is a better option if you want nothing to do with your payroll and want to free up time. It could also be more affordable option for some businesses.