Compliance Advice Benefits Of Payroll Outsourcing

Although most businesses are aware of the obvious benefits of outsourcing their payrolls (and I will list them again), one of the most significant benefits are often overlooked: The guidance that a competent payroll outsource provider can offer to ensure that your business complies with statutory regulations.

It is almost impossible for a Payroll Manager to keep up to date with all the statutory changes that affect your payroll given the frequency of changes. Payroll Managers often have other duties as well, which means that they cannot spend too much time reading up about new statutory/legal changes. Businesses whose payrolls aren’t statutory compliant can attract severe penalties and fines and it can also lead to under or overpayment of employees which could obviously be harmful to the employment relationship. Although payroll providers keep their systems up to date with statutory regulations, all changes can’t be “hard coded” into the software and often the payroll user has to make changes to parameters.

This is even more relevant for multi-national business who have offices in various countries and thus have to comply with numerous sets of statutory regulations. We also find that statutory regulations are often “open to interpretation” in many African countries, which makes it much more difficult to be sure that your business is in line with legislation. Credible payroll outsourcing providers normally have advisory networks throughout Africa to assist with the interpretation of grey areas in statutory legislation.

The other more obvious benefits of outsourcing your payroll are:

  • Avoiding payroll fraud
  • Business continuity and avoiding being over-dependant on one person and 
  • Cost savings 

For some more payroll advice and benefits of outsourcing feel free to send us a mail to

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