Outsourcing payroll is beneficial for businesses of all shapes and sizes, it can save a lot of time, reduce errors, and offer peace of mind to ensure you’re staying compliant. It’s an aspect of accounting that requires extreme attention to detail, but is outsourcing worth it? Let’s find out.
What Does a Payroll Service Provider Do?
A payroll service provider will handle all elements of payroll. This includes salary calculations, deduction measurements, such as retirement plans and income tax, payroll processing and payments, compliance, like tax payments to HMRC, and record keeping. A provider will also give you access to their payroll software, alongside support as and when you need it.
The Benefits of Outsourcing Payroll
Save on Time
One of the greatest benefits of outsourcing payroll is the amount of time you’ll save. It requires a great deal of calculations, from basic wages to tax regulations, which aren’t the type of things you can really afford to get wrong. Outsourcing allows you to focus on core business operations and growth strategies.
Mitigate Errors
Even small errors in payroll can lead to big problems, from unhappy staff to compliance issues which could result in penalties. As experts, we know payroll regulations like the back of our hands, ensuring accurate calculations and compliance. Our software automates complex payroll calculations to ensure you’re compliant with ever changing legislation, such as adjustments to National Minimum Wage, which could catch you out.
Increase Employee Satisfaction
According to a UK study by Sage, 51% of employees would resent their employer and lose trust if they were paid incorrectly even once, whilst 35% stated they would find another job. As we’ve said, payroll isn’t something you can afford to get wrong as it directly impacts the lives and satisfaction of your employees.
Reduce Unnecessary Costs
Surprisingly, outsourcing payroll can actually save you money. Think about the cost associated with hiring and training staff in payroll, not to mention the cost of the software. Outsourcing allows you to direct those costs elsewhere in the business, whilst ensuring you don’t face any costly penalties through non-compliance.
Ability to Scale
As your business, and inevitably headcount, grows, payroll becomes slightly more complex. Off-the-shelf payroll software often has hidden costs once you reach a certain number of employees and the risk of error increases. We set you up on BrightPay, with the ability to scale as and when you do.
Choosing The Right Payroll Provider
Determine Your Requirements
Start by scoping out what exactly it is you’re looking for from your payroll provider and the scope of the services you need, whether it be basic processing or benefits management and compliance support. It’s worth considering how often you run payroll, is it on a weekly, bi-weekly or monthly basis?
Research and Compare
You may want to look for providers that have experience within your industry, you should check the reviews and compare the services offered. When choosing your provider, think about the ease of use, reporting capabilities and integration with your existing systems. If you’re looking to switch providers, it’s best not to switch mid pay-run!
Consider Customer Support
If issues do arise with payroll, it’s something you’ll need to sort right away. Assess the quality of support offered and the timeliness of that support, so that you know you’re prepared to deal with potential problems in the future.
Looking to streamline operations and payroll? Get in touch to see how we can help with our easy to use payroll software, management and ongoing support.