As an outsourced provider of payroll services, we are often asked what are the benefits of outsourcing your payroll? In this article we look at the 4 main reasons we think smaller businesses should consider outsourcing their payroll function.
As a business owner there are better ways to spend your time
For some repetitive and detailed tasks, such as payroll, hold little appeal, even though getting them right is vital. Others might enjoy the prospect of the monthly payroll and understanding the fine detail of auto-enrolment and minimum wage legislation. However, in new businesses and smaller businesses, where there aren’t separate departments for the likes of Payroll, they often end up being done by the owner or senior management way. In reality, of course, the owner/director needs to be focusing on running and growing the business, leav ing the detail of payroll to outsourced experts.
Payroll Needs to be Correctly Done
If there’s one thing you can’t afford to get wrong, it’s paying your people. And getting it right with HMRC too. Outsourcing ensures payroll is done right, both for your employees and HMRC.
Businesses Must be Compliant
There are an ever-growing number of legal and HR issues that businesses need to comply with. The bigger the business, the more likely it is that there will be a separate HR department to manage the demands of compliance. However, in smaller owner managed businesses that is not usually the case, and it is easy to get bogged down in the detail.
From a payroll perspective, outsourcing can ensure you don’t get bogged down in the detail of:
- The Apprenticeship Levy
- the National Living Wage
- Pensions auto-enrolment
- The gender pay gap
Outsourcing payroll can give you the reassurance that your business is acting legally and responsibly, whilst removing the time consuming tasks of setting up and running your own in-house systems.
Outsourcing Cuts Costs and Saves Time
In any small business it’s usual for people to have responsibility for a range of roles and duties. Time pressures are constant, meaning it can be a real challenge to stay in control of an ever-expanding workload.
Payroll is a function that can easily be outsourced to free up your time to run and grow your business. In so doing costs can also be cut because the total cost of in-house payroll processing is often greater than outsourcing – where technology and expertise get the job done more quickly and efficiently.
If you are considering outsourcing your payroll, please talk to us. We can help.