Most companies under estimate the total True cost of running their own payroll.
Studies have shown that it costs approximately $1,400 per employee for a large organization and approximately $2,000 per employee for a mid-size organization for in-house administration of payroll, workforce administration and time and attendance. Of these costs, 50% are defined as “Hidden Costs” such as:
- Software costs
- System installation
- System upgrades costs
- System maintenance costs
- Employee costs (salaries, super, work cover, leave entitlements, payroll taxes, etc.)
- Employee costs whilst payroll staff are on leave