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19th June 2020
Outsourcing payroll is an efficient, risk-free way for businesses to make sure employees are paid correctly and on time, while also ensuring you are compliant with all HMRC regulations and requirements.
Have you been contemplating outsourcing your payroll? Do you feel that managing payroll internally is taking up too much of your valuable time? Time that could be better spent elsewhere, such as running your business and making the most out of growth and development opportunities.
If you feel this way but are unsure whether outsourcing is right for your business, we’ve answered some of the most frequently asked questions on the subject.
When outsourcing payroll, you are using a third party (such as an accountant) to handle all the administrative and compliance jobs involved with paying employees. Jobs that are important but also often laborious and time-consuming.
By outsourcing, you can relax knowing that employees will be paid correctly, on time and that you are HMRC compliant, helping you to avoid any nasty surprises such as fines and penalties.
Depending on the third party you choose to outsource to, you may also get additional assistance in areas such as onboarding paperwork when you take on a new employee, completing required employee tax documents and sometimes even I-9 compliance.
To process your payroll, the third party would gather all the necessary employee information, such as hire date, job title, salary and timesheet data. After that, they can calculate how much pay the employee is due and pay that amount to the employee.
Common steps include:
There are many different reasons why outsourcing your payroll is a good idea. Starting with cost. If you calculate the hours spent on payroll-related activities, plus costs involved with software, training, printing and distributing payslips, creating tax documents and so on, you will be pleasantly surprised at just how cost-effective outsourcing is in comparison.
Then there’s experience. A good payroll service provider will know the ins and outs of payroll-related tax laws and latest government legislation.
An experience payroll provider will also be able to process even the most complex payrolls at speed and often with quick turnarounds. They are less likely to make errors, and we all know how painful, upsetting and stressful payroll mistakes can be.
Most payroll companies will have processes in place to spot various types of payroll fraud, such as payment manipulation and ‘phantom’ workers.
These are just a few examples of why outsourcing is a good idea. Generally speaking, outsourcing will give you peace of mind. You can relax and say goodbye to any payroll stresses and worries. You can rest assured that everything is taken care of and you can focus on what matters – looking after and growing your business.
The cost of outsourcing your payroll varies depending on the payroll provider, and there are different factors to take into consideration.
Rather than going for the cheapest option, we would recommend taking into consideration the experience of the payroll company and what they offer as part of their payroll service.
Our payroll services are very reasonably priced and you will soon see the return of your investment in the time you get back, the ongoing support and guidance and additional financial and funding opportunities that become available to you.
If you would like to know more about our outsourcing service, we would be very happy to have a chat with you.
Call us on 0333 200 0714 or fill in the form below and we will be in touch.
have you read our previous post?