Every business with employees has to decide who runs payroll. Here's an honest comparison.
| Do it yourself | In-house hire | Outsource | |
|---|---|---|---|
| Direct cost | Software only | Salary, benefits, software | Monthly fee |
| Your time | Hours every pay period | Oversight | Approvals only |
| Penalty risk | Highest | Depends on the person | Lowest, with a good provider |
| Keeping up with law changes | You | Your employee | The provider |
| Coverage when someone is out | None | Often none | Built in |
The hidden costs of doing it yourself
The software is cheap. The expensive parts are your hours, a late deposit penalty, a misclassified worker, or a missed state filing that turns into a notice months later. For most owners, their time is worth more spent on customers.
When in-house makes sense
Larger companies with complex payroll, many locations or a full HR department often keep payroll inside, sometimes with outside review.
When outsourcing makes sense
- You have fewer than about 50 employees
- You employ people in Oregon or more than one state
- You'd rather spend payroll day running your business
- You want payroll tied into your bookkeeping and tax planning
What to look for in a provider
Accurate, on-time processing, responsibility for filings, secure handling of employee data, a real person to call, and integration with your books. That's how we run our payroll service.
This article is general information, current as of September 2026, and is not tax, legal or financial advice for your situation. Tax rules change often. Talk with us before acting on anything here.