Exploring the Benefits of In-House Payroll

Once upon a time, only large companies with sizable budgets and equally large payroll departments could afford to process payroll in-house. Limited staff and costly software systems made in-house payroll difficult and impractical for small and mid-sized businesses.  But advancements in technology and the development of new and significantly more affordable HR and payroll software has changed everything, including the need for (and perceived cost-savings of) outsourcing your payroll. 

Outsourcing Payroll is Like Using a Travel Agent

Not long ago, travel agents were an integral part of frequent or extensive travel planning. Then came Expedia, Kayak, and Travelocity and people were empowered with the control and information access to check flights and evaluate costs on their own. 

Booking travel accommodations online wasn’t just cheaper, it also gave you immediate and secure control over your travel plans, preferences and personal information.  In the same way that technology has changed the process of booking travel, software like Sage HRMS introduces a number of important benefits to processing payroll in-house including better control and cost savings.

Cost Savings of In-House Payroll

At first glance, outsourcing your payroll might seem like a practical, cost-effective solution.  But when you look more closely, outsourced payroll companies can charge a number of fees that can really add up. 

There’s often a base account fee along with the fee per paycheck, along with additional fees for tax-related paperwork or services.  And if you need a report that you can’t produce with their standard reporting tool, tack on another fee. At best, these costs remain the same and you continue to pay for the service each year … at worse, they increase and you have little control over it.

Although the up-front costs of doing payroll in-house is larger in the first year because you need to purchase and implement some type of payroll software, the simple fact is that processing payroll in-house is just cheaper than outsourcing over the long run.  In fact, as much as 37% according to many research findings that are widely available on the internet.

And when we say “long-run”, we’re talking about recovering your investment in just a couple of years in a lot of cases.

Control of Information

The goal of information security is to keep sensitive material private and protected. Performing in-house payroll ensures both. Instead of exposing sensitive information about salaries, benefits and work status to an outsourced payroll provider, you’re able to keep all that private data in your own secure database in-house.

Not everyone in your HR office needs access to all aspects of your payroll. With in-house payroll software, you get complete control over who gets access to what information.

Control of the Process

As a manager, it makes sense that you should have control over when and how your employees are paid. Whether it’s adding overtime or adjusting shifts, in-house payroll lets you make last-minute adjustments, and still pay your employees accurately and on time.  All without the typical fees, penalties, and delays assessed by an outsourced provider.

Control of Data and Reporting

Good business decisions require timely, accurate, and up-to-date information. In-house payroll software provides easy access to every aspect of your payroll, from benefit costs, to salary trends and seasonal employment numbers. And with a system like Sage HRMS, you get built-in reporting tools and analytics that allow you to easily slice and dice the numbers to analyze any aspect of your payroll and make effective business decisions easier.

Simply put, you don’t get that type of control and data access when outsourcing.


In-house payroll software like Sage HRMS also offers human resource management modules that seamlessly integrate typically paper-intensive items including shift rosters, vacation days, benefits, employment contracts, and much more without requiring duplicate paperwork or data entry.  With Sage HRMS, all of your payroll processing and human resource management happens in one single system which produces a cleaner and more efficient process overall. 

Does In-house Payroll Make “Cents” for You?

Contact us and see for yourself.  We’re happy to look at your current outsourced payroll costs, run an ROI calculation, and help you determine whether bringing your payroll in-house makes dollars and sense.