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Pros and Cons of outsourcing and having in-house Payroll

3 min read

Accurate And Compliant Payroll Is Very Essential For Your Employees, And For You Too As A Business Owner.

Figuring out what process to use between payroll outsourcing and payroll software for creating an accurate payroll is very daunting.

If you belong to a Small or medium business, it is very evident that using a  payroll software is beneficial over payroll outsourcing. I’ve listed out the benefits of using payroll software over payroll outsourcing.

1. Instant Access To Your Data

If you need to see payroll historical or have any question about your payroll data, you need to call your Payroll service account representative and it may take around 2-3 days for them to respond. Using a  payroll software can give you instant access to your data from any place and from any device. One cannot ask for more convenience than this.

2. Cost Effective

If you are a small or medium business with less than 500-1000 employees, then payroll outsourcing may not fit for you, since outsourcing costs much more compared to payroll software. By taking control of payroll by yourself and not going for payroll outsourcing, you can save a huge chunk of money.

It also boosts productivity and efficiency if you choose the quality payroll software. Conversely, payroll outsourcing costs so much money although it saves your time.

3. Privacy

Using a payroll outsourcing means your employee pay data will be on somebody else’s machine. This may be an issue for a majority of employers. On the other hand, SaaS-based payroll software like keka provides the option for employers to enable or disable the access of employee data to software providers.

4. Complete HRIS Solution


Good HR Software can make all the difference in the world”   ~Anonymous


Choose a payroll software which has integrated features like time tracking, attendance, and leave management system. It enables you to manage your workforce effectively with-in the budget.

However, you may be doing most of the work anyway by providing the data like paid time-off or salary information manually to your payroll service providers. If you are already doing this work, it will not take much workforce for you to manage payroll with the payroll software.

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    Meet the author

    Keka Editorial Team

    A bunch of inspired, creative and ambitious youngsters- that’s Keka’s editorial team for you. We have a thirst to learn new subjects and curate diverse pieces for our readers. Our deep understanding and knowledge of Human Resources has enabled us to answer almost every question pertaining to this department. If not seen finding ways to simplify the HR world, they can be found striking conversations with anyone and everyone , petting dogs, obsessing over gadgets, or baking cakes.


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