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When Should You Outsource Payroll?

When Should You Outsource Payroll?

Whether you are a numbers person or not, payroll is downright confusing, time-consuming, and flat-out not an easy task. Even the most experienced human resources pros would agree, which is why it is crucial to know when it is time to start outsourcing your payroll.

When you partner with a full-service payroll provider, like PayNW, most of your company’s payroll responsibilities – wage calculations, tax withholdings, reporting, and more – are taken care of. This leaves your HR team free to focus on what matters most…your people. 

But how do you know when it is time to outsource? Do you know what to look for? 

Benefits of Outsourcing Your Payroll

First, let's start with the benefits of outsourcing payroll services to a third party. Outsourcing your payroll software can allow your company to reap many benefits. Some of these include: 

  • Better compliance, without having to keep up with all the changes to state and federal requirements 
  • Accurate and timely filed payroll taxes
  • Elevated employee engagement and experience


When is it Time to Outsource Payroll?

While the majority of U.S. businesses process paychecks internally, this is not always cost-effective.

At a minimum, internal payroll processing requires the purchase of a computer or manual accounting program and extensive training to use it. In addition, businesses need to keep up to date on changes in personnel, deadlines, and tax requirements on an ongoing basis. For instance, when processing payroll in Washington, businesses need to adhere to a whole slew of requirements and regulations.

Employers should consider outsourcing payroll to a payroll service company if they: 

  • Lack the resources (personnel and technology) to run payroll effectively 
  • Have been penalized for incorrect or late tax payments 
  • Are unable to keep pace with changing employment regulations 
  • Cannot meet data security or recordkeeping requirements 

Employers also should evaluate how many mistakes they make when running payroll, as that can be a big indicator of when to outsource. Outsourcing payroll can help avoid most of the biggest payroll mistakes companies make.

What to Look for in a Payroll Service Company

Even if you have determined it is time to outsource your payroll, you need to know what to look for in a payroll service company. Similar to choosing the right payroll software, it is no easy task.

When a company comes to PayNW for its payroll needs, we keep the focus on the client. Our process is designed to deliver a positive, responsive, and supportive experience from start to finish.

Technology should serve people, not the other way around. Your company should be assigned a designated service rep to assist with any and all needs, something PayNW takes great pride in.

PayNW’s market-leading cloud payroll & HR system is combined with a dedicated service representative. Your rep is not just a rep, but a partner, providing personalized, responsive, caring support that makes PayNW a happy landing place for mid-size and growing businesses – particularly ones who like to choose their own business partners. 

Get Started With Outsourced Payroll

Whether it is helping with things like minimum wage compliance, such as Washington Minimum Wage Law, or helping with payroll processes, PayNW is your only choice for a true payroll service partnership.

For some businesses, giving up control of the payroll process can seem scary. However, the benefits often outweigh the risks. With PayNW, we ensure each client is treated correctly and things run smoothly 24/7. Your experience with PayNW will look vastly different than with other major payroll service providers.  If you aren’t convinced to outsource your payroll yet, just read some of our client testimonials 

Or, if you think a more tech-based approach is best for your company, take a look at our leading payroll software.

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