The Evolving World of Outsourced Payroll

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. Employers find that the tools and support provided by off-the-shelf software solutions and software as a service (SaaS) provider are more than sufficient to handle payroll functions internally. However, technology is not without challenges, including the cost of purchasing and maintaining systems, data security issues, and incompatibility with other HR platforms.

It is a critical question that never seems to be fully answered in the realm of business “Which tasks do we keep in-house and which ones do we outsource? From franchisees to entrepreneurs who build their own businesses from scratch, knowing when to pay someone else to do something can mean the difference between long-term success and just barely hanging on for you or your clients.

Companies that do choose to outsource one or more functions must always consider both the costs and benefits of doing so. No one-size-fits-all answer works for most small business clients. Rather than trying to offer such a solution, we believe it is far better to equip clients with options and effective outsourcing strategies that will help guide future decisions. Here are few ideas to keep in mind when deciding which way to go for payroll processing, in-house or outsourced.

Decide Where You Want to Spend Time

As small business owner knows, management staff only have a limited amount of time to spend on certain tasks. Therefore, the first and most important outsourcing strategy is to decide where and how you want to spend most of your time. For example, consider payroll.

Keeping your payroll in-house means dedicating some of your time to making sure everyone gets paid and your legal requirements are met. You can reduce the time spent by working with an online payroll partner, or eliminate your time investment by turning the entire thing over to an outsourcing partner. If the time spent on payroll is time you would rather be spending on something else, consider outsourcing.

Always Be Aware of Your Opportunities

We focus on full-service payroll, online payroll, and other related services because this is our core business. But other outsourcing opportunities exist. A good strategy for business owners is to always be aware of the available opportunities should a need arise.

A small business owner may not realize the company would benefit from a particular kind of outsourcing if he/she does not first note that the opportunity exists. You may see an outsourcing opportunity in the future that can truly revolutionize your business.

Be Willing to Spend Money

Our third strategy for outsourcing is to be willing to spend money. You know that old saying that says you must spend money to make money? Well, it's true even in the world of outsourcing. Outsourcing will ultimately save you money by increasing efficiency and reducing labor costs. However, there is often an initial outlay required to get the ball rolling.

Shop Around for Partners

You shop around for the vendors that provide the supplies and equipment your business needs, shouldn't you also shop around for outsourcing partners? Absolutely. Regardless of your outsourcing need, shopping around makes it possible for you to compare service and pricing. It makes sense to get the best possible value so that your decision to outsource actually results in financial savings.

Whether you are looking for a full-service payroll partner or someone to whom you can outsource other tasks, developing effective strategies for evaluating your needs and finding the right partners will make your business a more successful one.

Further examine the pros and cons of both payroll management and outsourcing and you can can make an informed decision about with path is best suited for your organization by clicking here or visiting



Todd Waletzki is the Chief Operating Officer of Payroll for BenefitMall, Todd brings more than 25 years of finance and payroll related experience and is responsible for maintaining the excellence of payroll operations for BenefitMall. Most recently Todd served as the Managing Vice President of US Card Operations for CapitalOne. Prior to that, Todd held the role of Chief Operating Officer of CompuPay (now BenefitMall) from 2010 to 2012 , where he was responsible for all payroll operational functions.  He has also served in multiple Vice President, and Senior Vice President roles at AOL. 

Todd received his Bachelor of Science in Economics from Bemidji State University, and his Master of Science in Economics from Southern Illinois University. He currently serves on the Board of Directors at Bethany College, and has previously served as a College Instructor at Webster University, and Southern Illinois University. Todd and his family currently live in Dallas, TX.