PAYROLL OUTSOURCING

Managing a payroll system and keeping the process up to date is an important aspect for business owners and organizations. Payroll outsourcing services are offered by external firms that provide accounting, tax and legal support to organizations to make sure that employees get their expected salaries accurately and on time.

SHOULD YOU OUTSOURCE PAYROLL SERVICES?

Payroll process includes calculating employees’ salaries and deductions, payment of employee salaries and benefits and submitting statutory deductions. Organizations and businesses make the decision on whether to in-house or outsource their payroll system depending on their needs. In-housing involves hiring a team of dedicated payroll experts to provide payroll services within a company while outsourcing involves hiring an external third party or a firm that is specialized in payroll management to provide the services to companies. Payroll outsourcing is often suitable for:

Start-ups and small businesses

Payroll management is expensive and time-consuming; most small businesses cannot afford to hire experienced payroll staff or a team to provide the services internally. Outsourcing payroll management services enables businesses to focus on growth and tasks that are not related to payroll.

Businesses that are expanding or growing

Payroll outsourcing is useful for companies that are expanding internationally, growing through a merger or an acquisition(M&A) and those that are hiring more employees. Payroll process involves lots of calculations and a detailed understanding of tax laws. By hiring an external third party to manage their payroll system, enterprises can be able to operate smoothly in new markets whether locally or internationally with an up to date payroll system.

HOW TO OUTSOURCE PAYROLL SERVICES 

When it comes to payroll outsourcing, it is important to work with a trusted service provider or a specialist payroll company that has a good reputation. Consider the following steps before picking a payroll service provider:

Understand your company’s payroll needs

Although any company or business can benefit from payroll outsourcing services, it is essential to assess your payroll needs. You need to understand your payroll challenges and how you would benefit from outsourcing payroll management services.

The following questions will help you understand your needs:

1. What is your payroll schedule?
2. Do you need to outsource contract management services?
3. Do you need to increase the number of your employees?
4. Will any of your statutory deductions’ requirements change?
5. Which payroll software is suitable for your business?
6. What is the location of your employees; are they in other countries?
7. Which integration do you need?
8. Do you have employees who are paid bonuses?

Do a through research

Outsourcing payroll management services includes sharing sensitive information about employees with an external company. You need to do your homework when searching for the right and trusted company to provide outsourced payroll management services for your business. Before settling on a service provider, consider important factors such as:

1. The quality of service and the reputation of the outsourced payroll company you would want to work with. Are they punctual? Do they have good customer service? Are they accountable? Do they have good reviews?
2. The size and type of your company.
3. Data protection policy. The service provider has to be committed to protecting sensitive data involved in running payroll.
4. The ability of the payroll management service provider to handle all legal compliance that your business has to follow while managing payroll and maintaining tax regulations. They should also follow the payroll laws of the country that your employees work from.
5. Affordability. Compare the prices of the best payroll companies or service providers and choose the one that fits your budget.

As much as the decision will be based on the size, location and type of your business, you still need to do a thorough research and analysis to understand various options out there.  

Prepare a payroll checklist

You will need to share an ultimate and accurate payroll checklist with your service provider to ensure the payroll process runs smoothly and is up to date. The checklist may comprise of the following:

1. Essential information about your employees i.e names, timesheets, wages, addresses, bonuses, deductions, benefits, rates etc.
2. Updated employee record that is clear and complete.
3. Reviewed calculations and double checked information.
4. Running payroll and paying employees accurately and on time.
5. Submission of tax and deductions i.e NSSF, NHIF and PAYE.

Make a good connection

Ask your potential service provider engaging questions about the payroll services that you are seeking or considering. An excellent service provider will always be available to attend to your needs. It is important to make sure that there is always constant communication and collaboration.

ADVANTAGES OF OUTSOURCING PAYROLL MANAGEMENT SERVICES

Outsourcing payroll management services is significantly beneficial for any enterprise of all types and sizes. The advantages of outsourcing payroll services include the following:

1. Saves time.

Running and managing payroll is necessary but it is time consuming. Outsourcing payroll allows your management team to concentrate on other administrative tasks.

2. Minimizes payroll risks.

Hiring expert payroll service providers reduces the chances of making common payroll mistakes such as failure to meet important deadlines or being late to file tax returns.

3. Cost effective.

Outsourcing payroll services means you don’t have to spend a lot of resources on payroll activities. If you choose the right service providers, you will save more money compared to doing it internally whereby you will have to spend more resources to make sure you have an up to date payroll software and trained payroll staff.

4. Payroll compliance.

Experienced payroll service providers are usually on top of all payroll and tax laws. They ensure deadlines are met and your business is complying with all statutory, regulatory and administrative laws.

5. Access to professional payroll service providers.

Your business gains access to expert payroll service providers who have a good understanding of all payroll activities. Outsourced payroll providers dedicate their time to handling queries and providing all the necessary payroll information to their clients.

CONTACT BRITES MANAGEMENT SERVICES FOR PAYROLL OUTSOURCING SERVICES

Brites Management Services is the best payroll management services company in Kenya. Our current payroll software system is sufficient to provide your company with the necessary support to manage your payroll functions. We have a dedicated team of payroll professionals who can manage your payroll process smoothly and accurately.

Benefits of choosing Brites Management Services for your payroll solutions

1.       Minimized monthly expenses for payroll activities.

2.       Latest technology and up to date solutions.

3.       Professional staff providing excellent customer service and accounting support.

4.       Flexibility to adapt solution to business environment, operations, and growth

5.       No cost for initial consultation and recommendations

6.       Our solution will allow your Management staff to focus on improving your business operations

If you are looking for the best payroll outsourcing services in Kenya, you can email us at This email address is being protected from spambots. You need JavaScript enabled to view it. or call us on +254 780 869782.