choosing-the-right-payroll-service

Choosing the right payroll service

 28 Aug 2018

Any business that manages employees is required to process their payroll. The majority of companies now seem to be finding external solutions for these processes and choosing an online payroll service for efficiency and convenience purposes.


These outsourcing payroll solutions have the ability to pay various employee types including full-time, part-time, freelance and contracted. Supplementary to the flexibility of your employment strategy, you and your employees will have online access to all of their payroll information, so you don’t have to worry about having an internal support function.


Here is everything you are required to know what online payroll services can offer to you and how to choose the correct provider for you.


What do online payroll services offer?


Here are some of the services online payroll typically offered to you:

  • Integration: Most online payroll services have the ability to integrate with a wide variety of payroll-related programs that many businesses are already using, these include applications such as human resources software, accounting software and time and attendance systems.    

  • New employee reporting: Competent payroll services will report the new employee to the government on your behalf.

  • Employee self-service: Employees will have online access to their payroll information to view payslips, year-end tax forms, and paid-leave balances.

  • Payroll processing: Outsourcing payroll services will automatically calculate how much an employee should be paid each payday. The systems will account for shift differentials, overtime, taxes and holiday pay, as well as the Social Security and benefit deductions. Following this process, the payroll service will then they proceed to make payments to the employees by either direct deposit or cheque.


The most significant benefit of using an online payroll service is that all the processing of payroll calculations, tax payments, year-end tax forms and everything else payroll related are completed for you. You will be able to trust an experienced and professional department to take care of your payroll in a comfortable and convenient manner without having to employ a qualified team member.


You may know or be aware that handling your own payroll services requires a lot of resources including training, recruitment, time and an additional wage that equates to more than when is done through an online payroll service. Furthermore, the training and knowledge would revolve around the idea that the business owner knows all the processes perfectly to pass them on. When you are considering outsourcing to an online payroll service, it is essential to remember that you will be working with a qualified professional who will take responsibility and payroll perfectly.


What you want to look for in a Payroll Service. 


Just like everything else, not all payroll providers will offer the same level of service. Here is a list of what small businesses should look for from a payroll provider. 

Features: In addition to processing your payroll and handling all your tax obligations, it is essential to consider if the service you are looking for supports multiple payment options you require, such as direct deposit and cheque. You will also want to make sure the provider offers flexible wage amendments, paid-time-off management, and detailed payroll reports.

Reputation: Always look for a provider with an established track record, this will reassure your worries by knowing that the company has dealt with the payroll issues you may face in the future. 

Easy communication and support: You want to be assured that you will be able to directly contact your account manager in case you require their services or to implement an amendment.

Cost: You need to find a service that your business can afford. However, in addition to price, you also need to find out if a contract will be required. Many online payroll services operate on a month-to-month basis with no long-term contracts, while others do require yearly commitments. It’s also important to check the costs of payroll if there are changes to the size of your company.

Employee self-service: The payroll service you choose should allow employees to log in on their own whenever they require it, to view their epayslips and year-end tax forms. 


How much will an online payroll cost? 


The costs for payroll services tend to vary, though most will follow a standard pricing structure like a standard charge and a charge per employee that will be billed on a monthly period. The cost could be dependent on payroll frequency between weekly and monthly. We offer both options so you can suit your business:


Payroll Frequency

Standard Charge

Charge per Employee

Set Up Fee

Year End Fee

Starter or Leaver Charge

Weekly

£5

£2.50

FREE

NONE

FREE

Monthly

£18

£2.50

FREE

NONE

FREE


Other questions that you should consider when choosing a payroll service include:


  • Do they have other clients in your industry?

  • How will they handle the business as your company grows?

  • Will they integrate with your employee benefits offerings? 

  • How often are their tax tables updated for compliance?

  • What type of security measures are in place to keep your company’s payroll data secure? 


Now that we’ve identified the benefits of outsourcing your payroll to a professional payroll service and highlighted key aspects to consider when choosing the correct provider. We strongly recommend speaking directly to a payroll provider and gain a thorough understanding of how this could be tailored to your business.