Outsourcing payroll is a cost effective means of ensuring
your employees get paid the correct amount with the correct
deductions for tax and national insurance.
How is it cost effective?:
Running your payroll system at present probably requires
technical equipment such as computers and the payroll
programs, together with the staff to use them.
This may be an expensive option as employees, computers and
software are constantly updated with ever changing rules and
By dealing with a specialist outsourced payroll company
they will carry the cost of computer maintenance, software
updates and training of staff. You will only be required to
provide employee details and the hours for which they are to
You will no longer be required to employ a full-time member
of staff to carry out this roll as it can be outsourced
Outsourcing Payroll - Legislation Concerns:
Running a business has enough difficulties and many owners
could do without the hassle of dealing with the changing
rules and rates.
It is okay for the larger companies who can afford to have
an employee dedicated to one role but when you are small to
medium sized employees are required to multi-task and
keeping up to date can be difficult.
You cannot ignore the daily dealings with local
authorities, rules and regulations but you can plan on
asking an outsourced payroll company to take over the day to
day requirements of payroll and allowing them to accept
responsibility for staying up to date and current.
Again it is cost effective and you can concentrate on
running your own business rather than dealing with yet more
Outsourcing Payroll - A Brighter Picture:
The world has grown smaller as the internet has grown
bigger and now we compete for everything including clients,
customers and even employees.
Using an outsourced payroll company also helps improve the
perceived professionalism of your business in the eyes of
Dealing with the busy daily tasks and operating issues can
in some cases lead to an inconsistent pay system that
continually lets employees down.
Once outsourced you benefit greatly as you need only record
the hours worked by each employee and forward the
information to the payroll company. Better still this can be
a simple spreadsheet sent by email. The payroll company then
works out net pay and deductions.
Once formulated the payroll provider can forward the
payslips and the net wage amounts for each employee leaving
you with the simple task of handing out payslips and
completing the neccesary bank transfers.
This enhances your businesses image for your employees who
see a regular professional system at work and feel secure.