What is payroll outsourcing?
Payroll outsourcing involves entrusting all or part of a company’s payroll management activities to a service provider or third party. Managing a payroll is a task that requires attention to detail and a lot of time in any company.
Today, this service is becoming increasingly popular. Outsourcing a task is a common practice these days. Outsourcing payroll in an SME is the most common. This solution makes it easier for a company to organise itself so that it can use the time it spends on other activities.
Outsourcing allows you to save time, benefit from legal expertise and cut costs. It can be provided by an outsourcing call centre, a service provider specialising in outsourcing activities.
What types of payroll outsourcing are there?
Before answering the question “how to outsource payroll”, we need to look at the different types of offshore payroll outsourcing. On the one hand, there is partial payroll outsourcing, where the company benefits from a tool offered by the external service provider. In this way, the company retains control of its activities, but benefits from this tool to make them easier to carry out.
On the other hand, there is total management of your payroll. This can be entrusted to a firm of chartered accountants or to an outsourced call centre. All payroll-related activities will therefore be carried out by an external service provider. The employer will simply be responsible for transmitting all the necessary information to the outside company.
There are several types of payroll outsourcing service on offer. It is possible to outsource IT resources, payroll production or post-payroll operations.
What are the different stages in payroll outsourcing?
To outsource payroll management to a call centre, the company needs to consider a number of factors:
- It needs to clarify its requirements for its project. In other words, you should determine whether it is preferable to fully or partially outsource the activity.
- The company will need to define the resources required to carry out the activity successfully. The employer has an obligation to find out about the project manager’s choices and orders.
- It is necessary to carry out an economic study to compare costs. This stage helps you to determine whether it is more optimal to outsource payroll management or not.
- The company needs to select the right partner to carry out its mission to perfection.
- The company needs to devise a system for monitoring outsourced assignments.
What about carrying out the project?
As soon as you start thinking about outsourcing payroll management for your company, you need to determine the complexity of the project. In other words, you need to analyse your company’s internal management process.
Determine whether all the activities can be outsourced, at the risk of complicating the work or incurring expensive outsourcing costs. Before signing a payroll outsourcing contract, carry out a number of studies. These include measuring your ROI over a few years and the cost to be allocated in the event of re-internalisation.
How do you organise the transfer of files?
Once you are ready to outsource your payroll, you need to begin a number of procedures, starting with the transfer of files. To carry out its work successfully, a call centre will need the following information
- the number of employees
- the applicable collective agreements
- the personal details of each employee.
All these elements need to be prepared in advance, before the first meeting.
Which experienced contact should be chosen to facilitate payroll outsourcing?
At the same time as preparing the files to be transferred, the company will also need to select an experienced contact person. This person should be a key figure in the company, acting as an intermediary between the employees and the service provider. This contact person will perform various tasks:
- He or she will transmit all payroll-related data to the outsourced call centre. This will be done on a monthly basis for better organisation;
- They will carry out the payroll with the service provider;
- In collaboration with the service provider, he will be responsible for the final validation of the payroll;
- They will also be responsible for paying contributions.
How do you select the right service provider specialising in outsourcing?
A company that outsources its payroll management is above all looking for a service provider it can trust to carry out its activities. It performs tasks that are essential to its growth and smooth operation. As a result, the choice of service provider needs to be made carefully, because it requires time and expertise.
When choosing your payroll outsourcing provider, always ask yourself the right questions and consider certain criteria:
- How much do they charge for their services?
- What about the service provider’s expertise?
- How long does it take to manage your payroll each month?
- What are the different tasks carried out, and what is their responsibility in the event of an error?
In addition to these questions, it is also essential to research the service provider’s IT resources and level. Find out about their team, their methodology and whether they have a legal department.