Outsourcing payroll processing can be a worthwhile decision for business owners, as it allows them to focus on their core business. But what are the pros and cons of taking this step? In this blog post, we’ll take an in-depth look at the factors that play a role in this decision.
7 Benefits of Outsourcing Payroll:
- Focus on the Core Business
- Experts in Complex Cases
- Privacy Policy for Payroll Information
- Compliance with Legal Requirements
- Liability Reduction
- Planning Certainty
- Timely Completion & Financial Statements
1. Focus on the Core Business
In an ideal world, you could focus exclusively on what matters most to you. But reality is usually different: In addition to your actual job responsibilities, you have to deal with numerous (administrative) tasks. This often results in a loss of valuable time and creativity that could be put to use on your core responsibilities.
Payroll processing is a task you don’t have to handle yourself. Outsourcing is the solution: You hand the work over to a service provider, allowing you to focus on your core business.
2. Experts in complex cases
For many companies, it isn’t worth it to have an in-house expert. This is especially true for small businesses. For such companies, outsourcing payroll processing is a worthwhile option for gaining the necessary expertise. Payroll professionals like payroll+ handle complex cases on a daily basis and are always up to date on the latest legislation.
3. Data Protection for Payroll Information
Salary information is sensitive data that must be protected under all circumstances. When outsourcing, this responsibility is transferred to the selected service provider. Choosing a proven provider is very important, as they can protect the data from unauthorized access. In addition, the data can be quickly and securely recovered in the event of a loss. Thus, protecting this data is a top priority.
4. Compliance with Legal Requirements
In payroll accounting, it’s important to always stay up to date on the latest legal developments. The complex interplay of taxes, reporting requirements, and levies creates various pitfalls that can easily be overlooked by the untrained eye. Violations of the law—even if unintentional—can be costly. This is where the benefits of outsourcing payroll processing become apparent: the experts at providers like payroll+ are familiar with these pitfalls and stay up to date on the latest changes in the law.
5. Reduction of Liability
Payroll processing is a task fraught with challenges. This is due to a combination of strict data protection regulations and laws. Outsourcing payroll processing not only reduces the workload within the company but also minimizes risk. This transfers complex legal and tax requirements to the service provider, including liability.
6. Planning Certainty
Outsourcing payroll processing does more than just reduce the workload within the company itself. It also minimizes dependence on individual employees, for example. With an external service provider, tasks are still handled even if an employee is sick. In addition, payroll costs can be calculated in advance. As a rule, you are billed only for the payroll runs that are actually processed. Outsourcing payroll processing therefore also provides certainty for resource planning—both in terms of time and costs.
7. Timely Financial Statements and Balance Sheet
Many companies worry about preparing their financial statements because there are several pitfalls involved. Outsourcing payroll processing can help alleviate this problem. A reliable provider handles the preparation and submission of all reports. They prepare the necessary documents right on the deadline, ensuring that all deadlines are met. Thanks to the experts’ know-how, the reports are accurately and correctly prepared. This way, business owners don’t have to worry about the financial statements.
Types of Outsourcing
Payroll processing is often handled by a fiduciary. However, there are also companies that specialize in payroll processing, such as payroll+, which are well-suited for this task. These various service providers typically offer several packages. Often, there is a choice between small and large service packages. This raises the question of how much work should be outsourced.
Partial service
With a partial service, only the more complex aspects of payroll processing are typically handled. This means that the company must enter much of the data into the database itself. This includes, for example, master data and payroll data. In addition, the employer must also verify the data itself.
The expert, on the other hand, prepares documentation for AHV contributions, for example. Pay stubs are also part of the service provider’s responsibilities. In addition, accounting documents are typically prepared by these specialists.
Full-Service
With a full-service package, the provider handles significantly more tasks than with a partial-service package. This includes not only maintaining the data but also updating and verifying it. However, even with a comprehensive service, not all tasks are handled. As a result, the company often still has to carry out some complex steps on its own. These include, for example, processing child allowances. Expense reimbursement also falls within the experts’ scope of responsibilities.
payroll+
payroll+ is a pioneer in the Swiss payroll market: It stands out clearly from the traditional software or fiduciary solutions that many companies have used until now. payroll+ is the only platform in Switzerland that handles all payroll-related tasks. For example, payroll+ reports sick days to the insurance company and handles pension fund contributions on behalf of the company. But these are just a few of the many unique features of payroll+.
| All tasks related to wages | payroll+ handles: | Your software handles: | Your payroll service handles: | Your insurance company will handle: |
| Prepare Payroll |  | | |  |
| Send Payroll Statement | | | | |
| Payroll Accounting | | | | |
| Pay stubs | | | | |
| Paying Wages (Employees/Freelancers) | | | | |
| Pay AHV | | | | |
Click here for a complete list of the benefits of payroll+.
How does payroll outsourcing work?
The Process of Outsourcing Payroll Processing with payroll+
One of the benefits of outsourcing payroll is its ease of use. Outsourcing through payroll+ is particularly quick and easy, as companies can pay their employees’ wages in just four steps.
- Select a payroll+ plan
- Sign In
- Enter Payroll Data
- Transfer total payroll costs to payroll+
Once payment is received, payroll+ initiates the next steps. For example, wages and social security contributions are paid.
Costs of Outsourcing Payroll Processing
The cost of services provided by a trustee is typically around 250 francs per hour. With payroll+, on the other hand, 1–3% of payroll costs is charged for processing payroll. For an employee with an annual salary of 60,000 francs, the processing costs therefore range from 600 to 1,800 francs per year.
Are you ready for hassle-free payroll processing?
Then schedule a no-obligation consultation with our multilingual team today, or call us directly at +41 55 416 50 50.