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The benefits of payroll outsourcing
Maybe you’re a start-up about to take on your first employee and wondering exactly how they’ll get paid. Or perhaps your business is growing quickly and you’ve realised that you’re taking up valuable time dealing with running your payroll.
Once your workforce has grown beyond a handful of employees, payroll can start to look pretty complex thanks to the ever-growing list of legislation you’ll have to deal with. From the National Living Wage, to Real Time Information (RTI) and pension auto-enrolment, it’s no surprise that business groups claim that red tape is strangling SME growth.
As well as all that, you will also need to get to grips with statutory benefits such as sickness, holiday and maternity & paternity pay – not to mention student loans and child support.
With so much to contend with, it is no surprise that small businesses are increasingly outsourcing their payroll to an expert.
Why think about outsourcing now?
The introduction of RTI and pensions auto-enrolment means that as a small business owner, it’s no longer a viable option to rely on manual payroll. That’s because you need systems in place that can do many different tasks simultaneously.
Complying with RTI means that you will need to provide accurate up-to-date information about your employees each time you run a payroll – certainly not an easy task if you pay your workers on a weekly basis.
Meanwhile, auto-enrolment means that you will need to ensure all eligible employees are enrolled on to a workplace pension scheme and start paying contributions. If the financial burden of all this wasn’t enough, think of all the time you need to spend setting all this up.
Unless your business is able to manage all of this by itself, it’s definitely worth speaking to someone who is. The penalties for non-compliance can be huge, so it’s important to get everything in order as soon as possible.
What are the benefits of payroll outsourcing?
Aside from the compliance aspect, there are a number of other reasons why you should let an expert deal with your payroll. Here’s a quick list:
- Reduce costs
While it might seem cheaper to keep payroll in-house, it’s likely that the time you spend managing everything (along with the risk of HMRC penalties) could end up costing you more than outsourcing it to an expert.
- Ease pressure on limited resources
Payroll can be a long and drawn-out process, so why not get an expert to do all the legwork? The valuable time you’ll save can then be put to better use, such as focusing on growing your business.
- Keep up to date with the latest legislation
As we’ve already mentioned, there are lots of different rules and regulations you will need to deal with as a business owner – and the list is probably going to get bigger. A payroll provider will have a team of experts on hand to keep an eye on the latest goings on and make sure you stay whiter than white.
What will an outsourced payroll provider do?
Payroll providers will perform a number of different tasks on your behalf, here are just a few:
- Work out statutory payments
- Ensure you’re paying the correct National Minimum Wage or National Living Wage
- Keep your business RTI compliant
- Calculate payroll and tax obligations
- E-mail across payslips
What’s more, some payroll providers will provide additional services such as accountancy or tax planning – so it’s a good idea to shop around to see exactly what you can get for your money.
Should only large companies outsource payroll?
No matter if you have one or one hundred employees, outsourcing your payroll to an expert is a cost-effective solution that could not only save money, but will also give you complete peace of mind that you will be 100% compliant with all relevant legislation.
What should I look for in a provider?
There are a few things to consider when searching for a payroll provider, including:
- Good knowledge of how a small business works
- Experience and the required level of skill to deliver the right solution
- Secure, compliant systems
- Financial stability
- No long-term contracts
- Additional services, such as accountancy or tax advice
What should I do next?
As you can see, there is a lot to consider when sorting out your payroll. If you think that outsourcing is the best option for you, it’s essential to contact an expert.
At ClearSky Business, we have a wealth of experience in providing a tailored service to suit your company’s needs. Our dedicated team is available to assist with any query you may have, so you’ll know you’re always in safe hands.
We also provide accountancy and tax services, meaning you can outsource all of this to one provider. Not only will this be cost-effective, but it also gives you more time to focus on the important things such as growing your business.
For more information about what we can do for you, or to join up, please call 08000 149 597 or email firstname.lastname@example.org.
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