Why leverage an outsourced payroll service?


A robust payroll system is essential for every business; big or small. It makes sure that employees are paid accurately and consistently. It saves workforce managers time so they can focus on other important tasks.

With an outsourced payroll service, you hire an outside agency to handle your payroll. An outsourced payroll service may be your best option over in-house payroll if:

  • You need to hire more employees for payroll management
  • Your software is not meeting the demands of your payroll process
  • You are at risk of security and compliance issues

Here are some of the benefits realised by companies that outsource their payroll to a managed service provider:

Save time and costs

Some managers believe that in-house payroll is a more cost-effective option than an outsourced payroll service. Contrarily, you can save around 35% with outsourced payroll because a fully managed payroll service can help you cut costs on employee training expenses and infrastructure. This makes it more cost-efficient on the whole. 

An outsourced payroll service enables you to reduce costs by:

  • Completely taking care of payroll processes, so you do not need to invest in new technology
  • Handling complicated calculations, saving you time and money
  • Cutting down on expenses associated with hiring and retaining in-house payroll employees
  • Helping you save money on office equipment and software fees required for payrolling

Handling payroll in-house often prevents managers from focusing on more valuable and important tasks and outsourcing payroll saves time – so that staff can apply their talents to more strategic areas. With an outside agency responsible for maintaining the software, processing the payroll, and ensuring that every payroll period is compliant with the government regulations, industrial instruments and employment frameworks – your staff have time to focus on what matters to your business.

As the business expands, these procedures become even more complicated and demand more time investment, all things that you can avoid with an outsourced payroll service.

Manage varying staff rates

Paying employees is not a straightforward process. It is not a “one size fits all” matter. Many companies have varying staff rates through which they pay their employees. More often, there is a standard rate in place, and then overtime is paid separately. Different projects and clients might require varying rates for the employees on task, depending on job level and work efficiency.

If your company has billable hours instead of a predetermined annual salary, payrolling in-house could become a tedious matter. This becomes further complicated when managing a mix of temporary, full-time and casual employees or where you may be handling a more complex mix of allowances and expenses within your payroll process. A simple solution to this is hiring an outsourced payroll service, which consists of experts who can efficiently deal with all these aspects and ensure that everyone in your company is paid correctly.

Remain compliant

For your payroll to function efficiently, it needs to adhere to all laws and legislation. If you are managing payroll across various legislative areas, in-house payroll can be a risk for you.

Your employees need to have specialised skills to ensure that your company is complying with the current legislation. Many companies have struggled to stay current with the industrial instruments in Australia, and how they have evolved, so it can be difficult for staff to keep track of changing laws and adapt the process and incorporate new rules. That can lead to errors in payments and filings which can result in heavy penalties. 

An outsourced payroll service has experts on-hand who are specially trained in these areas and can expertly guide you on data protection, privacy and compliance risk management. They keep themselves updated with legislation changes, maintain proper records, and ensure that all legislation filings are completed on time. These experts can help you keep up with the current legislation to avoid fines and remove the burden from internal employees.

Integrate with your other systems

A good outsourced payroll service will offer to integrate your payroll with other systems. For example, by integrating the payroll system with HR and ERP systems, you can save time, cut down administrative costs, and smooth operations. 

Other benefits include:

  • Employee data is easily shared before and after processing, eliminating the need for manual data transfers.
  • Changes and updates in the HR department can automatically be accessed by the payroll system, reducing errors and helping both departments save time.
  • Operations can run smoothly and take considerably less time.       

Outsourcing your payroll with Tambla

Tambla has experience working with enterprise and government clients to implement outsourced and managed service payroll solutions that automate and streamline payroll processing. We can become an outsourced payroll solution for your business. 

To learn more about our expertise, and our SAP SuccessFactors payroll services, please visit our solutions page.

Subscribe to our newsletter

Your email address will only be used for news updates and you can easily unsubscribe at any time

Discover more

Navigating the transformation from legacy to modern ERP systems

Navigating the transformation from legacy to modern ERP systems

According to the CPA Australia Business Technology Report 2023, 69% of Australian businesses have a digital transformation strategy in place. Organisations with more than
4 ways expert consulting services help you drive value from your SAP investments

4 ways expert consulting services help you drive value from your SAP investments

In Gartner’s report on the ‘Top 5 HR Trends and Priorities for 2024’, 56% of HR leaders acknowledged a misalignment between technology and the
Cloud IT Solutions: A flexible approach to HR operations

Cloud IT Solutions: A flexible approach to HR operations

A pivot to cloud technology has become a key priority in organisations across Australia. Gartner’s 2023 CIO and Technology Executive Survey found that 62%