Payroll Managed Services are often referred to as a commoditized offering. However, it is worth noting that if managed payroll services were as straightforward as many think, everyone would have been doing it — which is not how it is currently. This is particularly true when it comes to multi-country payroll.
In this article, we will explore the reasons behind this perspective and why managed payroll services should not be treated as a commoditized offering.
Five reasons why managed payroll services is not a commoditized offering
Managed payroll services are complex and ever-evolving. It requires a high level of knowledge, and there is no one-size-fits-all approach. Managed payroll services involve a range of different elements, including payroll processing, payroll tax compliance, employee benefits administration and HR administration. Naturally, the treatment of each of these elements varies greatly from country to country (in some cases within the country itself) and between different industries. Regulations are also continuously reassessed and updated, keeping payroll professionals on their toes.
A good understanding of laws and regulations: Managing payroll requires a deep understanding of labor laws, tax codes and regulations, either locally or on an international level. This knowledge is constantly changing, making it difficult for organizations to stay up-to-date and remain compliant. Payroll managed service providers must have the necessary knowledge and experience to help ensure that their clients are always compliant with all the relevant regulations.
Ability to customize solutions as per industry or business needs: Service providers must be capable of customizing services to meet different types of business and industry needs. Each organization has unique payroll needs that differ in complexity, and payroll managed service providers must be able to scale their services to meet these needs.