By definition, payroll outsourcing simply means engaging a specialized third-party organization to handle a firm’s payroll-related administrative activities.

According to recent statistics, payroll outsourcing is forecasted to reach US$10,336 million by 2023 in the global market with a constant CAGR (Compound Annual Growth Rate) of 4.4%. it has even been foreseen that payroll would soon be entirely outsourced globally. So, the first question is, what exactly are these payroll outsourcing companies offering that could make such a significant impact on the entire business ecosystem?

As a matter of fact, payroll outsourcing companies can provide a comprehensive set of HR assistance for their clients. From setting up an automated payroll system for the client company, recording employee’s data, and overseeing their work hours, to calculating wages and salaries, withholding required income taxes, and making payments via checks and direct deposits, a payroll outsourcing company is here to handle them for you all along. Not to mention, payroll outsourcing services also help administer employee benefits to ensure employee morale, maintain the company’s payroll accounts, as well as providing accurate and organised payroll reports to the business.

From the above, one can see why these payroll outsourcing companies are leading a global business trend. By moving a complex HR task from in-house to outsourcing, these services, without a doubt, reduce some weight off the client’s shoulders.