Top 7 Reasons Why Companies are Outsourcing Payroll - ReyPath Solutions
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Outsourcing your payroll can streamline your business and save money.

Although not all businesses have selected to outsource their payroll to a third party; many have opted to take advantage of the growing payroll outsourcing industry.

Its benefits are especially appealing to businesses seeking to spend more time at what they excel in.

Here are the top 8 reasons companies are choosing to outsource their payroll.

1. Time Saving

Processing payroll is not an easy task and it can take a lot amount of time to keep track of benefits, deductions, garnishees, terminations, and leave to name a few.

For most businesses many hours are spent each month keeping payroll in order through meticulous attention to detail and processing payslips. Additionally, running an in-house payroll means spending time to train an employee who can assist and eventually process the payroll if the primary payroll administrator is by some means unable.

The right payroll solution will save you money

2. Confidentiality and Security

Payroll processing requires your most trustworthy resources. 

The payroll system handles both personal employee information and company financial data. Risking misuse of this information is never an option; the abuse of this access can be devastating to your company. Such cases include identity theft, embezzlement of funds, and data tampering for personal gain. 

Leaked employee information in the office, such as payslip information, can cause disputes and create employee dissatisfaction that could have been avoided if only the data was handled offsite in a secure environment. 

Payroll outsourcing fulfils all these needs by keeping company data entirely out of site and protected.

Payroll System Security

3. Risk Mitigation

It is no secret that the penalties for errors, omissions or late payroll tax filings can cost you ‘an arm and a leg’, additionally, this can result in a non-compliance status and result in your company losing contracts.

Government rules and regulations are constantly changing. This makes it stressful and unrealistic for any business owner or employee to try and keep up to date with all the rules and regulations governing payroll and its processing.

This is exactly the space where a reputable payroll service provider steps in and ensures compliance at all times while alleviating your human resources to increase the growth of your company.

4. Eliminates Infrastructure and Maintenance Costs

To effectively run payroll in-house, you will need

  • Hardware
  • Licensed software
  • Additional backup resources

Once you have attained all these, you will also need to allocate time and finances to maintain the infrastructure and keep the software up to date.

By outsourcing, you avoid all the extra strenuous effort required to run an optimal system.

When you outsource your payroll, you will get an end-to-end payroll solution all for one service cost and ensure that you do not run into any unforeseen costs.

5. Avoid the loss of Payroll Expertise

Law and Payroll expertise

Running in-house payroll carries many risks when you manage your own resources.


Imagine receiving notice that the employee who runs the in-house payroll falls ill or is unable to perform their duties. In a matter of moments, your company is at massive risk of not paying employees which could result in downtime if employees decide to strike.

With payroll outsourcing, there are no interruptions to your payroll cycle as there are multiple skilled administrators within the organisation that can ensure payroll continuation.

6. Reduce Paperwork

No company wants more paperwork. There are already so many rules and regulations managed by pieces of paper that completely swamp your office.

By outsourcing, you could get access to a professional payroll administrator capable of setting up digital processes for all payroll-related processes.

This has been made possible with the introduction of Employee Self Service (ESS).

Many companies have streamlined leave and claim applications and automated payslips by doing this.


Secure Paperwork

DID YOU KNOW: Less Paperwork means less vulnerable information on your tables

7. Legal Knowledge

A payroll specialist has more than just knowledge of the system. A payroll specialist is dedicated to being an expert in payroll management and is committed to knowing and understanding all laws regarding payroll. These are legal expertise that few businesses can match. The reason is that their priorities are focused and not widely spread over a whole HR Department.

Outsource Now

ReyPath Solutions offers Payroll outsourcing in Pretoria, Johannesburg, the rest of Gauteng and south Africa.