Of course, you may think it would be better to let your own HR and accounting departments handle contractor payrolling. After all, they do so for your long-term employees, right? Here are some of the reasons why organizations rely on a third party to provide payroll services for their contract employees:
Yes, there are fees associated with outsourced payrolling services, but keeping this work internal also has costs and risks. Many of those are hidden and can potentially result in organizations spending more than what they would pay to outsource. Contractor pay rates are typically 10 -15% higher when sourced directly, rather than through a competitive channel.
Any business involves risk, and you may believe that handling the payroll for contract workers fits into the range of “acceptable risk.” But consider the risks you’re willing to take on: that you’ll miss an aspect of the onboarding process such as hiring an unqualified worker, paying too much, or that payments to the worker will go astray.
Sourcing contractor payrolling services from a qualified and experienced service provider will not only help reduce the chance of bad things happening, it will insulate your organization from potential problems. Using an experienced and qualified payrolling provider will help you save money and time.