Payroll & Outsourcing
Payroll & Outsourcing: When Does Working with an Accounting Firm Really Pay Off?
Published · 8 min read · NS Accounting & Tax Office
Written by the NSTAX team of accountants and tax advisers
As a business grows, payroll management becomes increasingly demanding — ERGANI deadlines, social security contributions, festive bonuses and staff changes. Many business owners wonder whether it is better to manage payroll in-house or outsource it to an accounting firm. In this article, NSTAX analyses the real decision criteria.
For a fuller picture, read our guide to the digital work card and ERGANI II, our guide to festive bonuses and holiday allowance, and explore NSTAX services for businesses.
What Payroll Management Includes
Payroll is not simply the calculation of net salary. It includes calculating social security contributions, preparing and submitting payroll statements to myDATA, updating ERGANI for every hire, dismissal or working-hours change, calculating festive bonuses and holiday allowance, and handling special cases such as sickness, unpaid leave and overtime.
In-house Management vs Outsourcing: What Each Includes
In-house Management includes:
- Hiring or training an employee exclusively for payroll
- Purchasing, installing and continuously updating specialist software
- Monitoring changes in employment and social security legislation internally
- The full employment cost of the payroll employee, including salary, contributions, bonuses and leave
- The need to find a replacement if the employee is absent or leaves
Outsourcing to an Accounting Firm includes:
- A monthly service fee based on employee numbers, without a fixed staffing cost
- Automatic access to up-to-date software and expertise without additional investment
- Continuous monitoring of legislative changes by the firm's team
- Uninterrupted coverage without dependence on one employee
- Immediate scalability as employee numbers rise or fall
5 Signs It Is Time to Consider Outsourcing
- You spend increasing amounts of time on payroll administration instead of your core business activity
- You have been exposed to a delay or error because the employee managing payroll was absent
- Your employee numbers fluctuate seasonally, making permanent in-house payroll staffing inefficient
- You find it difficult to monitor changes in employment and social security legislation in time, such as new ERGANI rules or changes to bonuses and allowances
- You are planning growth or new hires and want payroll to scale automatically without new internal hires
If you recognise two or more of these signs in your business, it is worth seriously considering outsourcing payroll.
When In-house Management May Be a Better Fit
For very large businesses with hundreds of employees and a need for immediate, daily access to detailed payroll data, creating an in-house payroll department may make sense, particularly when combined with broader human-resources functions.
An Example: A Business with 12 Employees
Consider a common scenario: a retail business with 12 employees is deciding whether to hire someone exclusively for payroll or outsource it. A full in-house hire involves salary, employer social security contributions, festive bonuses and holiday allowance for the payroll employee, in addition to software costs. With outsourcing, the business pays a monthly fee based on employee numbers, without any of those additional costs, while securing continuous coverage even if the person handling the account is ill or leaves.
Frequently asked questions
Do I lose control of my data if I outsource payroll?
Is payroll outsourcing only suitable for small businesses?
What happens if legislation changes during the year?
How quickly can I move from in-house management to outsourcing?
Considering Outsourcing Your Payroll?
NSTAX, an accounting and tax advisory firm in Athens, provides complete payroll management for businesses of every size, with accuracy, reliable deadlines and continuous legislative updates. Contact us for a free initial assessment of your needs.
Costs and benefits vary according to the size and needs of each business. Contact us for a personalised analysis.