Difference Between In-House Payroll and Payroll Process Outsourcing

Managing payroll management is a tedious process that is complex and time-consuming. Any lack of knowledge or mistakes during the process might lead to compliance issues. 

The responsibility of an employee handling payroll ranges from setting up payments to managing information for the tax process and statutory contributions by the employer. 

Although it was common for businesses to hire an employee specifically for payroll matters, more companies are outsourcing their payroll process. So, what is the difference between managing payroll internally and outsourcing it? Here is a Comparison of In-house Payroll and Payroll Process Outsourcing: 

Keeping Payroll In-House 

Businesses can have full transparency and control over the entire payroll process if they manage it themselves. 

Furthermore, companies can take immediate action for any internal process changes when payroll is handled internally. They would have full transparency and control over their entire payroll process. 

However, in-house payroll does have its pitfalls. 

It takes a well-trained professional who has substantial experience to efficiently manage payroll. The person must be an expert who can stay on top of the regular legislative changes; if not, errors will occur with potentially serious implications. 

Outsourcing Your Payroll Process 

One of the most significant advantages of payroll outsourcing is the expert support companies will receive.  

Payroll is a complicated and recurring task that evolves with every new legislation change. When companies outsource their payroll, professional service providers help them diligently keep track of new regulations to avoid compliance risks. Companies will have peace of mind knowing they are free of the legal and financial consequences due to payroll errors or irregularities. 

Another advantage is how much time a payroll process outsourcing (PPO) service saves. By delegating payroll administration to an external supplier, companies free themselves from fiddly tasks to focus on higher-value responsibilities.  

Nevertheless, companies must select a service provider that has payroll expertise. They should also keep track of all payroll data for budgetary purposes.


Choosing a service provider for outsourcing payroll can be a headache, but with TG Group, it doesn’t have to be.Contact us at infosales@tg-hr.com to explore how we can help you manage your payroll process to save time and be cost-efficient!  

Alternatively, WhatsApp us: Singapore +6598276511 | Malaysia +60175729483.