Payroll Management: In-House or Outsourced?

Payroll administration is time-consuming and requires specific expertise. Some companies choose to outsource payroll, while others prefer to manage it internally with software. Here’s an overview of both approaches.

Advantages of Outsourcing Payroll

• Lower personnel costs: no need to hire an in-house payroll specialist.
• No software fees: the payroll system is provided by the fiduciary.
• More time for core business: no need to acquire payroll expertise internally.
• Reliability: accident reports, family allowances, and withholding tax are handled by professionals.

Advantages of In-House Payroll with Software

• Internal expertise: knowledge and skills remain within the company.
• Direct control: full oversight of salary calculations and payroll processes.

Which Solution is Best?

There is no universal answer:

• A founder with payroll experience may prefer to manage it internally.
• Another entrepreneur, short on time, may look for an outsourced solution.

In practice, outsourcing often benefits very small businesses, while in-house payroll can make sense once employee numbers and processes become more complex.

Watch Out for Hidden Costs

Outsourcing doesn’t always mean saving money.

• Fiduciaries typically charge CHF 120–250 per hour (source: Gryps).
• Payroll is often offered as a package, but details matter:
  • Is withholding tax included?
  • Are family allowances processed?
  • Is support included for specific questions?

Without clarifying these points, unexpected costs may arise.

Payroll with quitt Business

Our model is simple and transparent: CHF 19 per employee + 0.1% commission per chosen insurance.

Included payroll services:

• Withholding tax registration
• Family allowance applications
• Salary payments
• Settlement with the compensation office & insurances
• Payslips and salary certificates

Additional services included:

• Selection and conclusion of required insurances
• Full claims management
• Individually generated employment and team contracts
• Customized expense policies
• Daily support via chat, email, and phone
• Payroll journal & cost overview
• Web app access for employers and employees

👉 Unlike a typical payroll provider, quitt Business also covers tasks usually handled by legal advisors or insurance brokers.

Conclusion

Payroll is essential, but managing it internally can be burdensome, and outsourcing to traditional fiduciaries can be costly.

With quitt Business, you get a simple, transparent, and comprehensive payroll solution – starting at just CHF 19 per employee.‍