Payroll outsourcing is simply the use of a service provider to handle the administrative and compliance functions of paying employees. It is important to note that payroll services are only that, and do not offer a local employer of record for the foreign company. Outsourcing payroll allows employers to concentrate on their core business and frees up the business owner, human resources or accounting personnel to work more on strategic tasks that could ultimately affect your bottom line. ... Outsourcing payroll immediately frees up precious time. 3. Major benefits of outsourcing payroll include cost savings, time savings, access to experts, prioritizing your core business and enhanced compliance.