What is a fully managed payroll service?

 08 Oct 2018

Payroll is not an easy process,  that's why outsourcing payroll is definitely not a bad idea. Of course, the market is flooded with agencies that seem skillful enough to conduct this process but that may not be the case every time. For this reason, you should have a keen eye before you say yes to outsourcing payroll. We´ve come up with some frequently asked questions about things to assess before going all the way with an outsourcing payroll company.

How much of my payroll do I want to outsource?

It all depends on how much are you struggling with payroll. Small businesses often choose to go with fully managed payroll, mainly because such business owners don't know how to handle payroll and the company is not that big to have their own accounting/payroll department. Some others - while still being small companies - may take over some aspects of payrolling that they actually can control, and hand over the rest to the outsourcing company. Handing over the whole payroll process for outsourcing is called: Fully Managed Payroll. Now, if you go down that road, all payroll struggles, responsibilities and intricacies go to the outsourcing company. You have unloaded a great weight onto others shoulders, so now you are back in your element and can run your business. 

This does not mean that you can not oversee the payroll work that's being conducted. You can (and must ) check that all payments, submissions and reports are being made in time and the same happens with all HMRC-related issues. 

How much does it cost a fully managed payroll?

You need to get the payroll to work flawlessly with both your employees and with the legal authority, but you also need to make things cost-effective for you and not spend a fortune to get the payroll struggle off your back. You will need to give to the agency accurate data of how many employees you have and of course, how many payroll processes you need to be conducted by the agency.

There's usually a fee to get the process started, and after that other charges may come depending on how large your payroll is and how many requests you´ve made. Be careful of additional hidden fees, also try to find an agency that´s empathetic and where clients are more than numbers. In other words, you need an ally more than a payroll service provider

Other Considerations: 

Additional tips and pointers are needed as well. This is, of course, after you´ve done your own screening process among the multiple agency options you have available. For instance, you need to find a payroll company that is tailored to your payroll needs. An agency that understands that your business is not like the rest and it requires special attention. Additional pointers are:

Constant Audits: The chosen agency must provide accuracy at all times. Make sure that after you provide them with your employee's info, you can validate and audit all of the payroll processes that your company requires.

Flexibility to issue payslips and epayslips: The payroll service provider must be able to process payslips and epayslips flawlessly and without delays. They must strive to make this process in a way that you save on printing and paper usage.

Payments: Make sure that the provider can deliver salary and pension payments seamlessly with no errors. Actually, this is one of the most natural parts of payroll, but it doesn't hurt to stay on top of the whole game here.

Security: You and your payroll service provider will be exchanging highly sensitive data; therefore it is a good idea to inquire about how well is the security of the data exchange and with the payroll software being used. On an additional note about software, make sure that it is HMRC compliant.

Final Word:  all payroll processes are challenging one way or another, plus you´re dealing with money so being extra careful is a must. Don´t struggle yourself with tasks that even though are mandatory by law; you can delegate onto a third party. This solution can save you big money and time, and that is priceless. Make the switch now, let us show you how.