Tips: Did you know that it takes between 18-30 months to uncover a payroll fraud according to Association of Certified Fraud Examiners (ACFE) 💡
Payroll is one of those business functions that needs to be accurate every month. Salaries must be processed accurately, employee information must be properly managed, statutory obligations must be handled diligently and management needs reliable payroll records.
For growing businesses, payroll can quickly become more than a monthly administrative task. PAYE, Pensions, HMO administration, employee records, onboarding, staff addition, promotions reporting and compliance can all create pressure on HR, finance and business leaders. That is where payroll outsourcing as a solution for Nigeria Businesses can make a difference. Instead of the deluge of payroll administrative tasks, businesses can work with a specialist outsourcing partner that possesses the people, processes and technology accustomed to the practices of good payroll management.
Incorrect payroll processing can lead to a range of negative consequences for a company, including employee dissatisfaction, legal and financial penalties, reputational damage operational inefficiencies and more. At OnePyramid Consulting Ltd, payroll is part of a broader HR outsourcing model designed to help organizations reduce administrative pressure, improve efficiency and focus on scaling their businesses. OnePyramid Consulting Ltd. is a reliable outsourcing partner in Nigeria, providing services ranging from recruitment outsourcing, personnel under management (PUM), background verifications and payroll management.
What Is Payroll Outsourcing?
Payroll outsourcing is the business practice where a company hires a third party service provider to handle its end-to-end payroll functions instead of managing them internally. These activities can include payroll administration, payment of salaries, distribution of payslip, statutory deductions and remittances, compliance and reporting.
The Benefit of Payroll Outsourcing
Primary Benefits
Cost Efficiency: Reduces the overhead of maintaining dedicated in-house payroll staff and specialized software.
Regulatory Compliance: Minimizes the risk of tax penalties or legal errors by leveraging specialists updated on current tax laws.
Time Savings: Frees up HR and management teams to focus on core business strategy and operations.
Data Security: Uses secure systems to protect sensitive employee financial and personal data.
The Benefit of Payroll Outsourcing
Primary Benefits
Cost Efficiency: Reduces the overhead of maintaining dedicated in-house payroll staff and specialized software.
Regulatory Compliance: Minimizes the risk of tax penalties or legal errors by leveraging specialists updated on current tax laws.
Time Savings: Frees up HR and management teams to focus on core business strategy and operations.
Data Security: Uses secure systems to protect sensitive employee financial and personal data.
Why we are best qualified to support the payroll administration of Nigeria Businesses
OnePyramid Consulting Limited are the owners of Accur8HR, a world-class Payroll solution developed to operate in a highly secure and operationally efficient manner and was specifically designed to provide Nigerian Payroll support to organisations of all sizes and industry sectors. With Accur8HR, you will get:
• 100% compliance with localised country specific legislation for full payroll administration (especially as it pertains to the New Tax Law)
• Payroll processes that are streamlined and simplified with multiple payroll reports
• Automated tax processing, administration, disbursement and remittances
• Archive of historic payroll data stored on a world-class cloud infrastructure
• An ISO27001 certified support that ensures international information security management best practice
Our Payroll System (www.accur8hr.com)
Accur8HR offers an intuitive and modern payroll solution that does away with some of the legacy payroll approaches and simplified data capture capabilities for payroll professionals by embedding legislation into the software.
Some key payroll features on Accur8HR:
• Unlimited earning, deduction, and company contribution components
• Flexibility to tap into most information on the system to be used in calculations (grades, org
units, positions, categories, leave transactions and many more)
• All component types are linked to tax codes, no need for the user to define the tax code
• Real-time calculations – capture input, immediately see the final payslip
• Pre-defined automated component for bonus tax spread and automated pay out of bonuses
• Full tax breakdown per payslip
• Excel or on-screen bulk uploads for any recurring and/or once off components
• Tax tables and other legislative calculations are maintained by Accur8HR
• Custom built error components to assist with any exception checks
• Legislative reporting in the required formats
• 90 Standard payroll reports, available in various formats and with multiple parameter options
• Various salary payment file formats including the option to custom build any format required
• Ability to generate a 3rd party payment file in various formats
This means a business does not have to treat payroll as an isolated finance activity. It can be managed as part of a connected HR operating model covering employees from recruitment through exit.
Payroll Outsourcing vs. Managing Payroll In-House
Managing payroll internally can work when an organization has the right people, systems, controls and expertise. But as employee numbers increase, the process can become more demanding.
OnePyramid’s own insight on payroll outsourcing versus in-house payroll highlights manual errors, changing Nigerian payroll regulations, PAYE compliance risks, poor audit readiness and time diverted from business growth as challenges SMEs can face with weak internal payroll systems.
The decision should therefore not be based on the outsourcing fee alone. Businesses should consider the total cost of internal payroll including staff time, systems, compliance monitoring, error correction, reporting and management oversight.
How Much Does Payroll Outsourcing Cost in Nigeria?
Payroll outsourcing pricing varies according to employee headcount, scope of services, payroll complexity, frequency, HR services included and technology requirements. Businesses should therefore request a quotation based on their actual workforce and HR needs rather than relying on a generic market price.
The better question is not simply “How cheap is payroll outsourcing?” but “What business value and risk reduction am I getting for the cost?”
Payroll Outsourcing and Business Growth
Payroll affects more than salary payments. It touches employee trust, financial controls, compliance, HR administration and management time. When payroll is structured properly, business leaders can spend less time resolving recurring administrative problems and more time focusing on customers, operations and growth.
That is the business case for payroll outsourcing: delegate the administrative workload without losing oversight of the business.
At OnePyramid, payroll outsourcing is positioned within a broader HR outsourcing solution that helps organizations manage the employee lifecycle while focusing on their core business.
Is payroll outsourcing suitable for SMEs?
Yes. OnePyramid specifically positions its outsourcing solutions for SMEs as well as larger corporations and fast-growing businesses.
Ready to Outsource Your Payroll?
Stop letting payroll administration take your team away from the work that grows the business.
OnePyramid Consulting Ltd. can help you build a more structured HR and payroll operation through Personnel Under Management, payroll administration, HR outsourcing, recruitment, compliance support and HR process automation.
Book a Free HR Consultation and discuss your payroll and HR requirements with the OnePyramid team.
Author
Digital Marketing Executive at OnePyramid Consulting Limited
