In large companies, managing payrolls is a tough task to perform as it requires accuracy and proficiency. Like any other service, nowadays, payroll can be outsourced to trustworthy service providers.

It has many benefits like achieving a streamlined process, minimizing time consumption, and establishing the employee-organization relationship with on-time payment processing.

While these services are designated to simplify the process, without proper planning or following best practices, the entire thing gets tangled. An employee payroll portal can provide you with enough assistance in managing the payroll services if you are not looking for outsourcing.

In this article, we have included the expert suggested guidelines for using employee payroll outsourcing.

Don’t completely outsource it

Although outsourcing the payroll is a great option, you can’t fire your internal payroll experts when you outsource.

You need to actively look after some parts of the payroll process with your in-house team, like performance reviews, training records, and creating custom reports. Alternatively, you may also use an online tool to create a paystub to manage your payroll system easier.

Ideally, you understand your employees better than the payroll service provider, so cross-check and verify for errors and changes with your internal payroll team.

Yes, not all the aspects can’t be noted keenly, yet you need to maintain a decent record of it.

Using an employee payroll portal also gives your employees access to their payroll details for verification before the payment processing. This gives the organization the power to cut down unnecessary costs.

Don’t emanate the change within your employees

The first and foremost team that will get affected due to outsourcing is Human Resources (HR). They might think since one of their major tasks is outsourced they will have very minimal work. This creates a sense of fear among them.

It is preferable to communicate with them prior to the change to dissolve the misunderstandings. Clarify with them clearly that only a certain portion of their reductant tasks are taken off, allowing them to concentrate on other priorities.

On the other hand, training the employees to access the employee payroll portal will ease the change’s fear.

Also, inform them that they will get paid through direct deposits to their bank account instead of a paycheck and clarify with them early.

Do analyze outsourcing

Remember, your payroll service provider is more experienced and has handled several situations easily. They will know ways to reduce complexity and avoid recurring issues.

Therefore, consider them as an advisor for payroll management. Sometimes certain issues seem like a minor problems but have a great impact on the pricing.

Substantially, you have to depend on the right partner to adapt to those policies that increase efficiency and decrease costs.

Do recognize the “regular” and “special” needs

To be honest, your payroll issues won’t be solved once you outsource it.

If you have discrepancies within the company’s unique payroll system, you need to identify and bring them to notice to the payroll service provider.

Segregate the special cases and regular ones in an organized way so that a Human Resource Information System (HRIS) consultant can figure out the calculations tactfully.

Do understand outsourcing payroll is a partnership

The fundamental idea behind payroll outsourcing is that both you and your payroll service provider are a team.

You need to watch each other’s back to take up the responsibility. If one is making a mistake, the other should point it out.

You can’t just allocate the work for outsourcing and walk away. Instead, choose to continually monitor your workers’ involvement in the employee payroll portal and what other tools they are using.


Payroll outsourcing can be an amazing experience provided both the company and payroll service provides collaboratively work together to offer their employees the best services.

We hope our guide would help you in outsourcing payroll. Mention in the comments which employee payroll portal your team uses? And how it work for them?