Avoid Non-Compliance With Payroll Outsourcing

Avoid Non-Compliance With Payroll Outsourcing

Payroll outsourcing is becoming an increasingly popular practice among companies across the world, especially now during this era of the COVID-19 pandemic. When the world first went into lockdown, people had to figure out ways to work and study from home. This has had a significant impact on companies across the world, including their HR departments, as they rushed to come up with solutions to help their employees to work more effectively in a remote environment, in an attempt to keep their businesses afloat in the midst of a global economic depression.

As the world slowly returns to in-person work, companies are attempting to implement new measures and practices to maximise deliverables and make up for the lost time during remote work. However, in-house payroll processing can take valuable time from an organization that they could instead use to focus on their business’s main goals.

How Does Payroll Outsourcing Facilitate Compliance?

A major downside of in-house payroll processing requires the HR department to stay up-to-date with the ever-changing regional tax, labor and social security accounting regulations in order to avoid any potential legal issues. However, keeping abreast of the complex changes in the law can be quite taxing and time-consuming on internal resources which makes outsourced payroll all the more desirable. Possible undesirable yet avoidable consequences resulting from non-compliance with HR law include:


An instance of non-compliance with HR law can result in possible fines and other punitive legal actions by government authorities which can grossly affect the financial situation of a company. Additionally, the company may also incur exorbitant expenses in legal fees in the event of court cases and lawsuits. Such penalties can be easily avoided through the convenient and cost-effective process of payroll outsourcing. Having a third-party company process your payroll requirements not only generates accurate results, but also ensures compliance at the hands of knowledgeable professionals who are well-versed with HR law.

Loss of Reputation

Inevitably, any legal trouble can result in the loss of reputation of an organization as it points to possible pitfalls in the company’s ethics and values. A compromised reputation can deeply hurt the company in terms of diminishing clientele and rising employee turnover rates. However, by outsourcing your payroll management, you can focus on the more important tasks of your business that would in turn lead to increased customer and employee satisfaction, ensuring loyalty.

Loss of Time and the Resulting Decreased Production

In some cases, not complying with certain HR laws can lead to the temporary (or permanent) suspension of the business’s license which can result in the loss of precious time. This could affect the operation of the company with falling revenues, which in turn can harm annual turnover and profit rates. Such developments can also result in companies shutting down for good. But with payroll outsourcing, you can elude all the dire consequences that come with non-compliance.

Payroll Outsourcing as an Effective Solution

In order to avoid cases of non-compliance, you can outsource your payroll to a third-party company that specializes in providing payroll and other HR services. A reliable payroll service provider would process your payroll concerns in a professional manner, using only the most secure payroll management software while also being cognizant of the current developments in HR legislation. More payroll outsourcing can spell less cases of possible non-compliance with HR law for your company.

About BSH:

Since 1993, BSH has been delivering state-of-the-art proprietary solutions to companies across the Middle East, enabling streamlined HCM processing and cost-effective practices. Their 12-year partnership with the world-leading ADP, coupled with a clientele spanning 300 multinational corporations operating in the Middle East, have made them a trusted leading regional figure in the fast-growing global payroll service.