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When you employ staff it’s your duty to maintain and manage your payroll in a timely manner. Large businesses may have an in-house team to deal with payroll, but for a smaller company this can be an expensive commitment. Outsourcing your payroll is often the most cost-effective solution, and here are some reasons to consider it.

Keeping employees happy

Your workforce needs to be paid the correct amount in a timely manner, without any errors. If you make errors when paying your employees, this could result in them leaving your company to work elsewhere. You might also end up in trouble with HMRC or the pensions regulator – eek!

Staying up to date

Legislation is always changing, from the way that payroll must be processed, to the minimum wages you must pay staff. Bringing your payroll in-house means committing to regular software updates and training, adding to the cost. Outsourcing to a professional will remove this requirement, whilst ensuring you remain compliant.

Saving money

Although you will pay to outsource your payroll, you will usually save money in the long term. Small businesses in particular will cut costs by not having to provide computers, software, time, and the training to in-house staff. A lack of knowledge and experience could also result in errors that will take time to correct. Conduct a costing exercise so that you can compare the cost of outsourcing versus an in-house team.

 payroll service

Freeing up time

Running a payroll is time consuming, requiring regular training and time spent keeping up to date with changes to software and legislation. Outsourcing leaves all employees free to concentrate on other duties in the company, knowing that payroll is being dealt with by a professional.

Improved security

Outsourcing to payroll will keep the confidential data of employees, like bank details, secure. Internet fraud is an increasing problem, and it is crucial that all personal information is stored and used in a secure environment.

New tools

To run payroll, an employer must use the latest versions of tax tables and the latest software so that pay is accurate. Updating payroll software can be time consuming, but must be dealt with to ensure that the correct pay is issued. Penalties may be charged if you use outdated payroll software.

About The Author

Suzanne Goodier-Dodson

I'm a Payroll Manager with a degree in Mathematics, responsible for overseeing every aspect of payroll for our clients. In my spare time, I love to travel and going to gigs. Read my Staff Spotlight.

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