Payroll Outsourcing | Meaning and Definition

What is payroll outsourcing?

Payroll outsourcing meaning is the employment of a service provider to handle the administrative and compliance tasks of paying employees. It’s vital to realize that payroll services are just that: they don’t provide the overseas firm with a local employer of record. This implies that local incorporation is still necessary, and the rest of the issues of hiring people must be done by yourself or by professionals.

Smaller businesses, particularly those without HR or accounting specialists on staff, may find it difficult to manage payroll in-house. One of the best ways to avoid hiring more employees for this purpose is to outsource it.

Payroll outsourcing is popular among businesses for numerous reasons:


  •   Avoiding the employment of in-house resources to comply with regulations of payroll and works to save money.
  •   Ease of continuous payroll administration via workforce changes, compensation structure reductions or increases and reporting to government agencies.
  •   Avoiding errors and fines related to tax compliance
  •   There is no requirement to set up a legal business to manage a compliant payroll while utilizing a GEO service in another nation.

Payroll outsourcing has various benefits for both small and large enterprises, and a substantial number of firms employ this sort of service abroad. International payroll outsourcing is a popular service because of the cost and time savings, as well as the ability to file reports and prevent compliance difficulties.

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