As a growing economy, even the small business owners here in the Philippines starts to recognize the different kinds of payroll methods. Determine if payroll outsourcing vs inhouse will work best for the type of business you have.
Here are some guides that can help you decide:
1. DOES IT CUT DOWN YOUR COST?
INTERNAL: If the business has less than 20 employees, in house payroll will be good and effective. The company will just have to hire people to do job and it is cheaper rather than outsourcing it.
OUTSOURCED: If the business has more than 20 employees, outsourcing will be the best. For internal payroll, the company will be hiring people to do payroll however if the company has hundreds of employees, it will require more employees do to the payroll and it is very expensive. Outsourcing is cost efficient since the company will not need to pay more payroll employees and also all documents; paychecks are priced along the payroll packages.
2. HOW DOCUMENTS ARE HANDED OVER?
INTERNAL: Whenever the company has questions about payroll, they can easily access the documents they needed since it is done in house; in contrast with outsourcing the documents are with another party, the company has to contact the provider before the company can have it.
OUTSOURCED: For some companies, sensitive data are difficult to hand over to another party and if your company has these kinds of data the company and the payroll provider might not work together successfully. Stick to Internal Payroll Processing instead.
3. HOW DOES IT DEAL WITH ERRORS?
INTERNAL: Human errors, in both internal and outsourced payroll processing, are something that is unpreventable. These mistakes can cause angry employees and penalties from the government. Unfortunately, the company has no string attached with the one in charge. Sure, you can fire them but looking and training a new one will take some time.
OUTSOURCED: Mistakes made can be minimized and controlled with the help of the experiences and advanced skills in payroll. For some instances, mistakes is inevitable wherein payroll provider may fail the expectations, the company can seek for restitutions against the provider which they cannot do with their employees or change for another payroll provider in a blink of an eye.
4. DOES IT FOCUS ON THE COMPANY’S PRODUCTIVITY?
INTERNAL: One of the advantages of internal payroll processing is that the company has the controlling and supervising power over the processes. Sadly a huge responsibility come along with it, the company has to splurge time studying taxes and other related government regulations, setting up and maintenance of payroll software, and having security protection for preventing payroll frauds. Unfortunately, those activities consume all the time and money that can be use for the things that is more productive and can help the business grow.
OUTSOURCED: The activities enumerated for preparing internal payroll processing like studying taxes and related government regulations and more is something that the company wouldn’t worry about when they choose to outsource. Even without having full control over the process, the company gains peace of mind, having the people focus on the creative and productive side of the business.
TrendStatic Corporation is also a payroll outsourcing provider located in Ortigas Centre, Pasig Philippines.
We are happy to meet with you for us to assess your company’s payroll requirements.
For more detailed information about this topic or you want assessment for your company, please feel free to contact us by filling up the blue form, and we will contact you as soon as we read your message.
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