September 5, 2021
How and Why to Outsource Payroll
For your business, it’s imperative that you consider the different payroll options available to you. As part of this decision, you should carefully consider how to outsource payroll for your business and why this could be a valuable opportunity.
Fortunately, our team is on hand today to help you learn more about payroll outsourcing services and how these could be a viable opportunity for your business to implement.
What is Outsourcing Payroll Services?
First of all, it’s imperative to answer the question of, “what is outsourcing payroll services?” Such is vital to give you a clear understanding of what payroll outsourcing services are before we can consider whether you should outsource payroll for your firm.
Outsourced payroll providers work with your team to manage all aspects of your business’ payroll from collecting timesheets all the way through to the delivery of payslips to your staff. By externally managing the payroll for your business, your firm will remove the headache of having to deal with the payroll and pension commitments each week or month. This will allow your business to spend more time and money on what it does best, instead, without having to slave away for hours every month to sort the payroll for your business.
As with anything, there are pros and cons of in house payroll vs. outsourcing. Hence, your firm should carefully weigh these up before deciding whether you should work with an external company offering payroll outsourcing.
How Easy is it to Outsource Payroll?
To begin with, we should clarify why outsourcing your business’ payroll can offer an exceptionally easy solution for your business. Indeed, regardless of the number of staff that your business employs – be it 1 or 100 – organising the payroll can be something of a headache. However, choosing to work a company that can handle it, can take a lot of the hassle out of this!
Outsourcing your payroll needs to an external company takes the pressure off your business. Indeed, getting wages and pension contributions calculated accurately and submitted on time is something that many businesses find a struggle. However, this doesn’t need to be the case.
Instead, choosing an external provider to outsource your payroll and pension needs can make life far easier for your business. With one less job to do, your business can get back to doing what it does best. All the while, you’ll have confidence that all payroll matters are being appropriately managed by specialist payroll outsourcing companies.
Finding an quality payroll outsourcing company to help with your payroll needs is simple. Teams such as ours specialise in providing premium outsourcing support for businesses just like yours, making the process of paying staff wages effortless. As a quality outsourced payroll provider, we’re here to help streamline your firm’s payroll management needs; so, why compromise?
Reasons to Outsource Payroll
So, why might you want to outsource your payroll? There are a few points and questions we should consider as part of this decision. Hopefully, this will help you learn how to outsource payroll and whether this could be a viable option for your brand to consider.
#1 Payroll outsourcing offers affordable solutions
One of the first things you might want to ask is, “how much does it cost to outsource payroll?” Fortunately, payroll outsourcing costs in the UK are generally very affordable options, and these can will help your business save money immediately.
For successful in house payroll management, you’ll need some form of HR individual or team on hand to manage payroll. However, this naturally comes with additional costs, such as the wages and software.
Instead, by outsourcing your payroll needs to external specialists, you’ll only pay for the services you need. This may make it possible to reduce the number of employees on your business’s books or otherwise cut back on their working hours – making payroll outsourcing costs incredibly affordable.
#2 Outsourcing payroll is an efficient solution
Managing the payroll is a lengthy and time-consuming process for many businesses (and small businesses, in particular). Indeed, while an in house trained staff member can still manage your business’s payroll needs, it can place additional burdens on their already busy work schedule and may not be an efficient use of their time.
It’s also worth noting that payroll management is an ongoing, monthly job – not a one-off task – and so these burdens will be continual throughout the year. The tasks will include, collecting timesheets, correctly calculting pay, PAYE contributions, emailing staff payslips (whilst complying with GDPR!), compliance with auto enrolment/handling pension contributions, being on hand to advise business owners and their employees, submitting filings to HMRC and the pension regulator on time to avoid timely inspections and fines, and much more … the list is endless!
Why not make the more efficient choice for your business instead? Outsource your business’ payroll needs, and let yourself or your staff spend their time growing your business.
#3 Getting the payroll right is crucial for keeping staff, HMRC and the pension regulator happy
Your staff rely on the business’ payroll management to get their wages. Of course, to this end, any mistakes in your payroll solutions will inevitably leave them feeling undervalued, stressed, and discontented with the workplace.
Of course, poor employee morale can have many consequences on your team’s ability to perform overall, leading to poorer retention rates and reduced productivity. So, don’t take this risk; ensure your firm is getting payroll right to ensure that your staff remains happy and productive.
Furthermore, HMRC and the pension regulator from time to time, whether through errors or a general inspection may want to ask questions around your business’ payroll and pension scheme. We can not speak for every payroll outsource provider, however at DIGI, dealing with all of this is included in our fees. Also, late filing to HMRC and the pension regulator will lead to penalties being incurred.
#4 Outsourcing professionals have software for efficient, secure data handling to stay compliant with GDPR
When you choose professional payroll outsourcing services to help your firm, you can be confident that they’ll already have invested in the best payroll management software and systems. These solutions can often be expensive. Moreover, learning to use them may be time-consuming for your team.
However, payroll outsourcing companies will already have these software solutions in place. Hence, this ensures effective, efficient, and secure data handling and payroll management.
#5 Expertise is key
As a final point, it’s essential that we consider how professional outsourcing companies’ expertise can benefit your firm. Indeed, when you choose experienced and reputable outsourced payroll providers, such as our team here at DIGI Accountancy, you can be confident that you’ll be getting the best payroll support possible. Our team can handle all aspects of your payroll management needs, so you don’t need to worry about this!
Are you still wondering: “should I outsource payroll?” Or maybe you’re ready to learn more about the pros and cons of in house payroll vs. outsourcing for your team?
If so, then get in touch with Adam or James, our payroll experts, to learn more about how to outsource payroll for your firm. Alternatively, head to our services page to see more about our services and how they might be an excellent fit for the needs of your business.
Our fees for managing your payroll and auto enrolment/pension needs are simple, we charge a low cost per payslip produced!
All information is correct as at 5 September 2021.
Call: 0161 250 7500
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