Payroll administration is a 'mission critical' business process. You really do not want to get it wrong.
Payroll administration is a 'mission critical' business process. You really do not want to get it wrong. For those of us in the service sector, pay is one of our biggest single input costs. Well run organizations make sure this process is goes smoothly, but at what cost?
The example below aims to help you calculate the cost of your current payroll administration. This is useful in evaluating a payroll administration proposal. You can request a ‘live’ version from our staff so you can do this calculation for your own organisation. You may need to speak to your accounting department to get the correct figures. The figures you need to change are marked in yellow.
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A 50-100 person company probably has payroll done by a USD300 per month person using a spreadsheet. The cost of doing payroll this way is conservatively estimated to be around USD750 as the analysis below details.
You can also use this to calculate your own cost here.
If you do not have time to do the calculations, simply take your payroll staff salaries and multiply by 2.5 times to get an estimate of the actual cost of your payroll administration costs.
For more interesting tools regarding payroll, click here!
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