Why CEOs Should Outsource Payroll Accounting

Payroll Accounting: More Than Just Numbers

Payroll involves more than paying salaries. It includes calculating AHV, ALV, BVG, and withholding taxes, meeting legal deadlines, issuing payslips, maintaining payroll accounts, and communicating with authorities and insurers.

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Risks of In-House Payroll

Especially in SMEs, payroll is often handled “on the side,” by CEOs or non-specialists:

• Miscalculations in social contributions or withholding tax
• Late reports to funds or insurers
• Missing accruals for vacation, overtime, or 13th salary
• Fines or back payments after audits

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Benefits of Outsourcing Payroll

1. Time Savings & Relief – No monthly admin workload, no need to keep up with legal changes, focus on core business
2. Error Prevention & Legal Compliance – Accurate payroll, on-time reporting, expert support during audits
3. Transparency & Predictability – Clear costs, structured reports, clean year-end payroll records
4. Happier Employees – Timely, accurate payroll boosts trust and clarity

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Who Should Outsource?

• SMEs without HR departments
• Fast-growing startups
• Businesses with frequent changes in employment
• Seasonal businesses or multiple payroll systems

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How to Transition Successfully

1. Analyse current processes
2. Choose an experienced provider
3. Define interfaces
4. Assign clear responsibilities
5. Train internal contact person

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Conclusion

Payroll is sensitive and complex. CEOs aiming for growth and strategy should outsource to professionals for efficiency, compliance, and employee satisfaction.

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