Payroll outsourcing has numerous benefits for a company. It reduces HR management costs, allows your business access to the latest payroll technology, and allows you to concentrate on the core activities of the business. It’s especially good for small companies who lack a large HR budget, or those with a constant turnover of staff, such as agencies.

Many freelancers consider setting up a limited company with paid staff, for which a payroll is essential. Paying staff “cash in hand,” without wage slips, looks unprofessional and opens the door for abuse of the system. Even if you just employ a few family members, they should really be placed on a company payroll – something which fills many small business owners with dread. The answer is to use a professional employer organisation offering an outsourced payroll service.

Does your company need an outsourced payroll facility?

Unless you are a large corporation, it’s unlikely you have in-house HR specialists specifically to take care of the salary paperwork. This is a complex and challenging area, and it’s unlikely the average PA assistant will know where to start sorting out the legalities and complexities of the monthly salary sheet.

Payroll processing involves keeping accurate records, calculating taxes, chasing late timesheets and making sure payslips and payments are issued on time. It involves a high level of security in-house, since it involves handling of people’s individual bank accounts and National Insurance details. A lot of money has to be spent on upgrading security, and installing complex HR software. If the company employs staff who work varied amounts of overtime, or have a different expenses sheet each month, it can become a nightmare.

This is why so many small to moderately sized firms rely on a payroll outsourcing company. It frees up time and resources to deal with the running of their business, and ensures staff are paid accurately, and on time. The companies offering payroll outsourcing generally employ legal, financial and business experts who can deal with even the most complex payroll issues quickly and efficiently. They handle payroll processing, distribution of pay checks, payroll inquiries, benefits, NI calculations and much more. What is more, they perform these tasks accurately, thus avoiding payroll confusions and HMRC penalties.

Lowered costs – maximum efficiency

Knowing your company has chosen payroll outsourcing is a great weight off your shoulders – and is easy to set up. Once the details for each staff member are in place, all that is needed is for the hours to be reported – the payroll provider does the rest. Payroll information, checks and reports can be sent via UPS or email the following day; some companies will also liaise with firms like retirement providers and time clock systems, giving a fully compliant service.

An outsourced payroll allows for company growth. Instead of expensive HR technology and software, money can be invested elsewhere, for example new process equipment, updated IT resources, materials or transport. The cost is usually less than that of taking on another member of staff to do the job in-house, and using payroll outsourcing experts means you can be confident that it’s money well spent.

Author Bio: Susan writes articles about payroll outsourcing for Zeva Umbrella.

Category: Business
Keywords: payroll, outsourcing, payroll outsourcing