Payroll outsourcing is asking a third party to manage the payroll of your company. In other words, when you do not manage the payroll of your company in your organisation itself, you outsource it. Small companies choose to outsource payroll as they find it more feasible. Otherwise, they will have to buy software, hire staff. However, in reality, the time and cost payroll outsourcing is saving depends on the complexity of the organisation and the payroll requirements. Some payroll service providers give a barebone service while some deal with everything including liaising and ensuring full compliance.