Actual costs when calculating internal salaries yourself
For businesses with less than 20 people, there are often no full-time C&B personnel, but are assigned to accountants or business owners to do the same - this "free" cost actually contains opportunity costs (time) and the risk of incorrectly calculating taxes and social insurance due to not updating regulations in time.
Cost of hiring an outside payroll service
For less than 20 people, the fee for outsourced payroll services is often minimal according to the provider's smallest package — in many cases less than the opportunity cost of the business owner/accountant spending time doing it themselves.
Important non-financial benefits
- Reduce the risk of social insurance arrears and late payment penalties due to incorrect calculations.
- Always update the latest regional minimum wage and social insurance rates.
- There is a specialized contact point for consulting when situations arise (maternity leave, labor accidents...).
When SHOULD a small business calculate payroll internally?
If the business owner or accountant has solid experience in labor law, social insurance, and the number of employees is very stable (no complicated fluctuations), calculating salary yourself can still be a reasonable choice in the early stages.
Time to switch to outsourcing
When a business begins to have foreign employees, many different salary levels, or has encountered tax/insurance errors, it is a clear signal to switch to hiring a professional payroll service.
What is the minimum fee for outsourcing payroll for businesses with less than 10 people? Each unit has different prices, so contact directly to receive a quote for the smallest package suitable for your scale.
Does hiring a payroll service take away control of small businesses' salary information? No, businesses still receive full reports each period and have full authority to decide on salary policies; The service provider only performs calculations and complies with business policies.