I work in a small office of about just under 40 people, 4 of which are already paid by an external organisation (our chartered accountants).

Our payroll clerk has just walked out (literally) - abandonment of contract of employment ??

Anyway, my view is that payroll should be contracted out.
Cost based on 30 employees paid fortnightly is $2,300 pa (NZD).

I would just would like to see what other's opinions are, please.

 

Unless you were paying your payroll clerk substantially less than $2,300 a year than it looks like there's no choice. Plus it reduces the risk of losing the person (which has just happened).
For 40 employees I am surprised that your organisation was prepared to carry the overhead,

 

It depends on the type of business. My last company had to process thousands of hours worth of time clockings (aircraft maintenance) in order to produce the payroll. They contracted payroll out but the logistics involved meant it was very unreliable and actually worked out more expensive than doing it themselves, so it was brough back in house.

$2,300 pa does sound very cheap so I am guessing your payroll is relatively simple in which case it does seem like a very good saving.

Remember to factor in other costs, such as hours required at your end to support the process any any set up/recurring costs such as extracts from your HR systems etc. if applicable.

 

Industry is pax transport, but all 30 odd staff will be Call Centre Telephone Staff, the ones that take the bookings.

All staff paid on an hours worked basis.

Only two sites.