Does payroll outsourcing saves cost?
Depends upon whom you hire to do your payroll. The costs for an internal bookkeeper who also does payroll may be as high as $25-$30K annually, while hiring an external entity to process your payroll may be half that cost. You also need to ensure that the fees an external payroll processor charges are within the alignment of the corporate budget. My husband’s company used his company bank as a payroll processor but charged about $30 monthly for his overnight express delivery of the paper checks, paper pay-stubs, and then charged about $20-30 each payroll period to process the payroll for four employees. That’s a lot of money for the five minutes of effort the bank put into the processing on their end. The bank recently informed us they were going to discontinue processing payroll and moving the services to ADP. While ADP is a highly reliable payroll processing company, there was going to be no reduction in cost, so my husband’s ears perked up when another payroll processing company woo’
