Everything You Should Know About Outsourced Payroll Solutions


  • Internal HR teams often struggle with payroll and all the associated tasks it involves, from tracking work hours to keeping up with compliance.
  • Outsourced payroll solutions can make businesses more efficient by saving time, reducing costs, and providing the support of payroll specialists.
  • At SBS Payroll, we support California-based and out-of-state businesses with a full suite of payroll and HR solutions. Contact us to get started!

For internal HR teams, managing payroll can be a real headache. It’s not just about calculating employee salaries and tax deductions every month; it’s also about keeping track of work hours and ensuring compliance with labor laws and regulations. But there’s a better alternative: outsourced payroll solutions.

Hiring a reliable partner can boost efficiency, saving HR professionals valuable time and enabling them to concentrate on more strategic, core business tasks.

Are you considering moving to an outsourced payroll service? Read on to find out how it works and uncover all the benefits it can bring to your business, regardless of its size and industry.

Let’s dive in!

What Are Outsourced Payroll Solutions?

Outsourced payroll solutions are external service providers that an organization can hire to delegate their payroll function. Instead of managing payroll in-house, a company can outsource these tasks to a specialized partner.

By outsourcing payroll, internal teams have more time available to focus on activities that drive business growth, while ensuring accurate and timely payment for their employees.

Outsourced payroll solutions typically include a range of services, such as:

Depending on the provider you choose, you can get access to related services like time and attendance tracking, benefits administration, and other HR-related tools.

Click Here to Learn About the Benefits of Outsourced Payroll Solutions

What Are the Benefits of Outsourced Payroll Solutions?

The global payroll outsourcing market has been growing steadily in the past few years and it’s projected to reach $19.5 billion by 2031. Companies are turning to payroll outsourcing to reduce costs, automate time-consuming processes, and delegate stressful tasks to experts.

Let’s find out more about the benefits of outsourcing payroll!

Cost Savings

Outsourcing payroll can be more cost-effective than maintaining an in-house payroll department, especially for small and medium-sized businesses.

“Businesses with an in-house team managing payroll, time and attendance, and benefits administration spend 20% more than those who outsource the same functions.”
— 360 research reports

On top of that, there’s a technological advantage: when you hire an external payroll provider, you get access to cutting-edge software and tools, avoiding the costs of purchasing and maintaining your own systems. 

Time Savings 

Payroll processing —and all its associated administrative tasks— can consume valuable hours from your HR team. Switching to an outsourced payroll solution alleviates the burden and allows HR professionals to focus on growth-oriented activities.

The result? A more productive HR team that doesn’t get overwhelmed with paperwork and can develop strategies to attract talent and keep employees engaged.

Payroll Compliance

To stay compliant, businesses need to adhere to a wide array of federal, state, and local regulations — just to name a few: the Equal Pay Act (EPA), the Fair Labor Standards Act (FLSA), laws regarding taxes, and more.

Keeping up with constantly evolving regulations takes time and requires specific knowledge. So it’s easy to see why companies choose to let experts handle this. Payroll service providers are always up-to-date with tax laws and regulations, helping businesses avoid costly compliance errors.

They can also assist companies with year-end tax reporting, making this process faster and smoother.

Improve Payroll Accuracy

Payroll has a direct impact on employees’ well-being, job satisfaction, and overall trust. So, it’s vital to make sure it’s done correctly!

“Nearly half of American workers (49%) would seek new employment after just two payroll mistakes, such as being paid late or incorrectly.”
— The Workforce Institute

Professional payroll service providers use advanced systems and processes to minimize errors in payroll calculations. They also ensure that payroll is processed accurately and on time, preventing frustrating delays.

Security and Confidentiality

Payroll involves dealing with highly sensitive personal information, such as employees’ addresses, Social Security numbers, and other identifying details. Because of this, businesses are required to meet strict data privacy and security regulations.

Payroll service providers employ robust security measures to protect sensitive employee information and therefore, can ensure data confidentiality.

Power Your Workforce with SBS Payroll

Payroll demands a lot of time, being up-to-date with labor and tax regulations, and careful attention to detail. Too often, this falls under the responsibility of HR teams that already have a full plate.

Outsourced payroll solutions can be a great alternative to reduce the workload for your internal team and make sure that payroll is in the hands of specialized partners.

At SBS Payroll we support businesses across a variety of industries — from construction to retail — with a full HR & payroll solution. We go beyond payroll processing and help companies handle time and attendance, benefits administration, background screening, and more.

Curious to know more about how an outsourced payroll solution might help your business? Request a payroll check-up to identify your business’s main payroll challenges and find a solution that fits your specific needs!

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