when-to-outsource-your-payroll

When to outsource your payroll

 06 Dec 2018

Payroll is a process that every company has to complete, in order to manage all financial matters related to every employee. Payroll involves more than just paying everyone on time, it also entails other types of payments towards the employees such as taxes imposed by law, auto-enrolment into a workplace pension and other requirements.

Tax regulations require that some payroll processes and paperwork submission to be delivered within certain time frames and failure to comply can quickly escalate into legal fees. This is why payroll cannot be seen as something that can be forgotten, as it requires attention to detail and strict control to avoid legal issues with HMRC.

Unfortunately, many companies still see payroll as something minor that can be delegated onto an unqualified employee or employees. Other companies have opted to outsource their payroll, as a new approach, in order to have the certainty that the process is being conducted correctly. This usually happens following a company incurring fines from HMRC or start having complaints from employees. 

Another important aspect of good payroll processing is software. If a company wants to deal with payroll processing correctly, they must have specialized software, otherwise, the whole process becomes excruciatingly tedious, which is when errors start happening, plus it saves a lot of time.

This is when outsourcing payroll can be the solution, in fact, companies from all industries and businesses are starting to adopt outsourcing methods as the best way to find a professional helping hand that will not interfere with any core business aspects, instead, they will provide a big aid in back-office duties, like payroll, thus saving you time and money. 

So, unless you´re running a one-man company, pay attention to outsourcing as the best solution right now.

Other instances where outsourcing payroll is the right move, regardless of the size of the company: 

Too many mistakes:

Payroll is one of those particular departments within a company that simply cannot afford mistakes. Payroll errors are expensive and severe, remember that payroll also deals with employees taxes, and risking a fine from HMRC is not an option.

A well-established outsourcing payroll provider will have the tools and technology to conduct a good payroll, as well as be aware and updated with recent law regulations and changes. Having a professional team of experts working to get your payroll the way it should be is highly satisfying.

Too much money

For companies, acting as their own payroll department may seem like the best way to save money, but how much money would you be saving if the HMRC fines you for not complying in time. If payroll is being conducted by employees with little to no payroll background, the process can be overwhelming for them as they will not have the time to conduct payroll and fulfil their other work duties. Outsourcing may be the option that can really save money for the company, just explore the market and compare prices.

Inconsistency between processes

As mentioned before, taxes and salaries are not to be played with and maybe the staff you´ve designated can´t be consistent with the thoroughness that payroll entails, more than with any other accounting process. Outsourcing is the best solution to correct this problem, the company will have all stages of payroll covered. It is the best way to assure a streamlined payroll process. 

Hard time complying to tax law

The employees designated for payroll are fully aware of all tax regulations and its constant changes in labour and payroll law. Tax forms, deadlines to submit documents and many other aspects require strict compliance to avoid fines and legal mishappens. Payroll outsourcing is the best way to avoid any compliance issues in the future as they are fully aware of any recent tax law changes and which ones are related to your business or industry.

Time-consumption

Payroll requires attention and strict control, hence they require time, No payroll can be done in a hurry. In addition, the company needs to keep growing and deal with other equally important things.

An outsourcing payroll provider will be devoted only to your payroll that way your in-house payroll staff can dedicate themselves to their tasks only and owners can have peace of mind knowing that everyone is doing what they're good at. Outsourcing payroll may not be the solution for other types of businesses with little to no staff, but any other type of company or brand will benefit from this method.