Whether or not to outsource payroll is a choice that growing companies often face at some point. When is it useful to outsource payroll?
Outsourcing your Dutch payroll administration
Two common arguments for outsourcing payroll administration are:
- lack of time and
- lack of specific knowledge.
Payroll administration requires specific knowledge of laws and regulations. Knowledge that a company does not always have in-house. On the one hand, Finance departments usually focus on ‘regular’ financial administration and control. On the other hand, HR departments, especially within larger organizations, often prefer to focus on attracting new talent and supporting current staff in their development. The HR professionals who do focus on administration generally have a greater affinity with the ‘soft side’ of HR work than with the figures. Payroll administration is therefore often the odd man out and HR and Finance regularly discuss where it should best be housed.
In addition, small and medium-sized companies often have the argument that they pay too small a number of employees to employ a payroll administrator.
Reasons to look into outsourcing the payroll administration.
The advantages of outsourcing payroll administration
A major advantage of outsourcing payroll is the time savings it provides.
In addition, you can rest assured that the agency to which you outsource payroll administration has all the up-to-date knowledge of relevant laws and regulations. So you always have access to the right up-to-date expertise, without it costing you time and effort to stay informed.
There is also a cost saving. Keeping the payroll in-house means that you will have to employ a payroll administrator and have to invest in education and all legal requirements around this employee. If you outsource your payroll you can agree a fixed fee and not worry about it anymore.
Furthermore, you relinquish responsibility for the payroll administration when you outsource it. This limits the risk of fines and errors. Certainly when the company has a more complex payroll administration, for example when it employs many expats, it can be pleasant to outsource it to an agency.
Finally, outsourcing offers a great advantage in the continuity of the payroll. This advantage is especially important for organizations with a small payroll administration, staffed by only one payroll administrator. If this person is absent for any reason, the organization immediately faces a major challenge: who will ensure that the salaries are paid on time this month? This risk is nil when outsourcing to a solid external party.
Outsourcing the payroll administration therefore mainly provides time, convenience, expertise, costs savings and risk limitation. You can opt for complete outsourcing of payroll administration, or for a hybrid solution, in which you do part yourself and outsource another part.
Expatax can help you with your payroll
Expatax has the knowledge and experience to help you with your payroll. Especially if you also employ expats. Expatax is familiar with all regulations including especially the 30% ruling and the international challenges around the employment of employees in the Netherlands.