What payroll services are available to small businesses

 13 Dec 2018

Payroll is a key process for any organisation regardless if there are only a few employees or it’s a large corporation. However, it is portrayed that payroll for small businesses seem like they shouldn’t represent a major problem to the owners as they should be able to process all the requirements for their employees.

Unfortunately, in reality, it’s not so simple and there are plenty of rules and regulations which you must abide too to prevent failing to comply with HMRC, which can have costly consequences for both the employer and employee. In addition, small business owners must deal with new legislation and new deductions that must be performed on behalf of the employee. Many variables can affect your companies salary model, keeping up with the day-to-day necessities and goals of a growing business can turn this apparently controllable process into a headache.

What is a payroll service and how does it work?

A payroll company is a third party provider which can offer to perform your businesses payroll and auto-enrolment for the workplace pension. These bureaus are an alternative solution to training an in-house employee or the accumulation of multiple expensive software. These companies offer high accuracy and automatically processing to ensure you don’t encounter any issues with HMRC regulations. However, commonly these providers become used to allow a small business owner the opportunity to focus on their business and fee earning processes.

Payroll services significantly reduce your companies risks of errors and including when end-of-year tax returns must be submitted on time and accurately. It’s also not without forgetting the benefits for employees with automatically scheduled salary payments and commonly online access to payslips including personal information management. 

Outsourcing Payroll

Outsourcing payroll providers offer various different methods to complete your payroll. They are considered a third party company which will manage your business’ payroll alongside many other companies with a dedicated account manager. The amount of support these outsourcing payroll providers offer depends on how you want to run your payroll. If you are searching for assistance in your auto-enrolment for the workplace pension only then they will have processes in place to support you whilst alternatively, there are fully managed payroll for an end to end service.

Fully managed payroll

When a small business owner hires the services of a payroll service provider to handle their entire payroll it means that the third party will handle all aspects of payroll administration. Managing the entire payroll of a company is a big and complex process, especially if the company requiring the service has a large number of employees. When using a fully managed payroll service, the providers commonly offer flexible pricing per an employee, so you can break down the costs for the service.

Small business owners must look at their business and determine how much of the current payroll they wish to keep to themselves and what parts are desperately requiring help. If you don't have a bookkeeper or accounting staff at all, then a fully managed payroll may the be the best solution.

Pay as you go

Some companies decide to go with payroll outsourcing on a short-term type of agreement. For instance, there are companies who already have one accountant employed, but they may need to outsource things like the hiring process for new employees or staff/leave related matters. All small business owners know how much administration and paperwork this process entails.

Whichever solution you find it most suited to your business, it’s important to understand the value that high accuracy and professional support can provide when you might be struggling to start a new business. The best starting place is to speak to a provider for advice on how you should manage your payroll.