Why outsource your payroll?

As employers approach the new tax year, those who do not have the administrative capabilities or expertise to run a payroll function may wish to consider outsourcing. Payroll outsourcing involves the hiring of an external individual, or company, usually in the form of an accountant/bookkeeper, or via a specialist bureau to complete the payroll function on your behalf.

For any organisation employing staff, attending to payroll concerns can demand a great deal of time and expertise. Even single director only payrolls need to be processed in a timely & efficient manner in compliance with HMRC directives.

Employing specialist help can:

• Free up time to concentrate on the core business
• Remove the cost of maintaining your own payroll software
• Reduce employment costs
• Decrease the chance of errors caused by untrained staff
• Enable the business to stay compliant with latest payroll legislation & thereby lessening the chances of late filing penalties or payroll omissions
• Provide secure on-line 24-7 payroll access

Free up time to concentrate on the core business

Freeing up time to concentrate on the core business speaks for itself. It is unlikely that payroll is to be the core of your business. The more time you devote to running the payroll, the less time you have available to concentrate on what your business was set up to do. Employing a third-party expert to complete your payroll process can free up this time.

Remove the cost of maintaining your own payroll software

Outsourcing your payroll can save money when compared to operating in-house. Processing in-house means investing in the necessary IT hardware & software not to mention providing the staff with adequate training in how to use the software & keeping abreast of all the latest legislative changes.

Reduce employment costs and decrease the chance of errors caused by untrained staff

For many companies payroll is only a concern for a limited time of the month. The need to employ anyone for two or three days per month can be prohibitively expensive. Outsourcing the payroll can reduce the employment costs of a company, by utilising the expertise of an external company but you can also cut down on the chances of errors arising when using untrained or part-trained staff.

Enable the business to stay compliant with latest payroll legislation & thereby lessening the chances of late filing penalties or payroll omissions

For many small to medium sized businesses complying with constantly changing laws, rules and regulations is just too daunting a task. The latest rulings concerning holiday pay is just one small example as to how complex payroll law is becoming. Failure to file the appropriate returns on time; or failure to comply with the latest holiday pay regulations can be very costly errors for any company to have to face. Outsourcing the payroll to a trustworthy service provider can help to avoid these pitfalls.

Provide secure on-line 24-7 payroll access

A modern-day payroll provider allows access to payroll information 24 hours per day. The use of cloud-based payroll reporting and individual employee log-ins, provides the employer with instant access to all payroll data at little or no extra cost. No need for costly storage facilities.

Looking for more details?

Please do get in contact with our payroll department.

Disclaimer - All information in this post was correct at time of writing.