9-reasons-for-outsourcing-your-payroll

9 reasons for outsourcing your payroll

 28 Dec 2018

Payroll is considered one of the biggest tasks that businesses have to deal with, its complexity and all the costly implications resulting from incorrect procedures have turned this process into a headache for many business owners.

Staff

Payroll is a major business process that requires a dedicated staff to complete, but most small businesses usually use unqualified employees to conduct these tasks as an additional function besides their originally assigned responsibilities. 

When businesses decide to outsource payroll, they allow its staff to concentrate on their originally assigned tasks, improving efficiency in the workplace. Therefore, having a third party handling a company's payroll process will allow everyone to focus in their areas of expertise thus making the business grow.

Knowledge

Payroll is more than just paying in time to employees. There are different forms of employment that can lead to complex payroll situations that your “in-house” payroll staff may not be familiar, and have a lack of knowledge with payroll procedures which may result in serious fines and fees from HMRC. An outsourcing payroll services will provide vast knowledge of everything related to payroll, tax law and new government legislation.

Costs

The overall cost to run an internal payroll department can quickly accumulate when it involves a payroll software, equipment, training, printing, distribution, employee wages and the potential fee’s and fines if procedures are not completed adequately. Outsourcing payroll companies offer a cost per an employee to manage a suitable payroll cost and also the professional support to prevent HMRC fines.

Training Staff

Hiring an entire payroll staff may not be a cost-effective solution to all businesses, or maybe the business is not large enough to make it worthy to have a full/time payroll employee. As a result, companies may have to train employees in payroll as an additional task to their usual work roles who will also have to keep themselves updated with new processes and sudden legislation and payroll law changes.

Error-free

Incorrect management of a business’ payroll can result in large fines however having a team of professionals to complete the payroll can ensure high accuracy which will significantly reduce the risks of encountering any payroll errors.

Speed

Handling payroll is a lengthy and stressful process that can take a lot of time to complete even if you have the knowledge. An outsourcing payroll service company will have a good team of skilled payroll specialist that can handle complex payroll processes accurately and in a timely manner.

Reliable

Having a payroll service provider means that there’s a dedicated team of specialists that will deliver consistent and highly accurate payroll results every time. Whereas an in-house payroll employee may encounter problems if an employee gets sick or if its a holiday. Finding a skilled replacement can be hard and may compromise the entire payroll process. However, a payroll company will never have this problem when handling your payroll, so you can rest assured that your payroll process will be carried out no matter what.

Tailored payroll

Most payroll companies offer different packages depending on the company’s needs and size. Most of the time those packages are flexible so you can add or delete services depending on the amount of payroll you want to outsource. This is important so you don’t end up paying for something that you’re not really using.

Security

If business owners have the time to verify every single stage of payroll, making sure that no fraudulent activity takes place, then they should encounter no problem. Sadly, most business owners don’t have time to supervise this and if they do have time, they may lack the correct tools to identify malpractice.

Outsourcing to a payroll service provider will have the latest payroll software technology and also will have the correct methods to detect and block any fraudulent activity in case the company gets attacked by hackers, remember that payroll handles sensitive data.

Outsourcing payroll is a great help for businesses within any industry. However, business owners must do their share of research so they can find an ally that provides professional guidance. 

If you’re not sure about which of your payroll areas need help, you can talk to our team of professionals who will help you to find the most suitable solution for business.