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Payroll Services for Your Company

Why Outsourcing Payroll Services is So Popular in the Business World of Today

Payroll costs are eating into the profits of companies and although outsourcing has been slow to catch on in South Africa, many overseas companies already make use of external payroll services to minimise cost to company and to ensure compliance with regulatory requirements.

With payroll costs placing a heavy burden on your company’s resources, you may be looking for companies that can provide payroll services for your company, but are not yet sure what the outsourced payroll services can do for your company. Below are the top reasons why it has become the norm rather than the exception to outsource payroll services, helping you to evaluate whether such will work for your company.

Scenario of How Outsourcing Can Benefit the Company

Company X decides to cut on costs and the one that makes the most sense is payroll. Instead of employing an entire department to administer the payroll, they decide to make use of the expert services of an outsourced company. One year later Company X calculates the savings and concludes that they have saved on:

  • Human resources – salaries, benefits and leave expenses, as well as the additional payroll management for the people who administered the payroll in their company.
  • Floor rental space as they no longer need the extra space for the manpower previously allocated to payroll administration.
  • Computers and equipment purchases, rental, maintenance, and energy costs.
  • Training costs related to keeping up with legislation, software and payroll management trends.
  • Legal costs associated with late payments, incorrect salary slips, and leave processing.
  • They have gained access to expert guidance for structuring of the payroll.
  • They have reduced financial losses related to payroll fraud in their department and have benefitted from reduced risks.


Company X realises that by outsourcing the payroll services that their cash-flow improved and that they are now always compliant with SARS and other regulatory requirements. They were able to restructure and appoint the employees in profit generating positions.

Giving You a Chance to Focus on Core Activities

Unless you own a non-profit organisation, generating profits will be a priority. Having to focus your attention or the skills of your employees on non-profit generating activities, means that you will be losing valuable resources that could have been focussed on activities that generate income.

Compliance with Laws

Any business operating in South Africa must comply with the Basic Conditions of Employment and other Labour Laws the moment they employ people. The more employees a company has the more regulations apply and having people on the payroll to manage non-profit generating activities means increasing the risks of non-compliance. Outsourcing payroll services for your company can help to streamline your human resources and ensure compliance with various laws. Besides the above, the expert company takes over the risks of ensuring compliance of on-time payment, accuracy of payslips, on-time submissions, consolidation of reports, and more.

The outsourcing company focuses on understanding the various laws pertaining to tax and remuneration including overtime payments, leave payments, and other benefit payments. When handling the task in-house you have to ensure that your personnel keep up to date with the legislation and since they are in your employment you take responsibility for any inaccuracies, non-compliances and mistakes. Should a key person, responsible for administering the payroll, leave your company you will need to quickly appoint another one and already lose the knowledge of the previous employee. Add to such the risk that the employee will share confidential information with competitors and you can understand how outsourcing the payroll services will benefit your company.

Access to Expertise

A final benefit not to be ignored is that of having expert guidance regarding structuring of taxes and salaries. With a complete department dedicated to understanding every possible thing about payroll and taxes the outsourced company also offers expertise that you would otherwise not have or would have spent a lot of time and resources to get. Complementary to such is the access you gain to the latest payroll software and technology to ensure optimal management of the function.

Considering the benefits that outsourcing the function can bring, your next step is to call in the experts to provide a range of relevant payroll services for your company.