Can Outsourcing Payroll Save Your Business Money?by Brian Patterson on Apr 4, 2013 • 1:36 pm No Comments
It is often said that employees are a business’s greatest asset, so making sure they are paid accurately and on time should be an absolute priority. Some companies are in a position to be able to manage their own payroll in-house, but due to constantly changing legislation (with hefty fines for non-compliance)and the complications of paying freelance or contracted workers, many businesses are now investigating the benefits associated with outsourcing payroll to a specialist provider.
Finding the right payroll provider
There are a number of dedicated payroll agencies that will compete for your business. Some of the best are also recruitment agencies, who can offer a complete package of Human Resource assistance as well, such as temporary staff hire, process reviews, legal advice and training services. Make sure you carry out detailed research to find the right provider for you by obtaining testimonials and talking to other companies in your industry who have also outsourced payroll. The right payroll service will be able to get the job done efficiently and on time, every time, with excellent knowledge of employment legislation, a dedicated account manager and the flexibility to work with you no matter how much your needs change.
What does a payroll provider offer?
An outsourced payroll solution can offer many different levels of service; from a fully managed strategy down to clients who are just looking for administrative support, whether this is only for one off contractors or large teams of employees. Generally, they look after wages, deductions, bonuses, tax and record keeping.
Payroll services will collate all of the payroll information from their clients. This is then processed with HMRC to make deductions for any tax or National Insurance contributions that need to be made. Payslips and reports are generated and payment made by a set date. A payroll service will also take into account company pension deductions, help your overseas workforce, maintain personal data, assist with drawing up contracts and ensuring employment legislation is met. They may also be able to assist with recruitment, keeping timesheets updated, performing security checks, screening employers and carrying out risk assessments.
Some recruitment agencies can also offer help with payroll and timesheets for the temporary or contracted staff that they have supplied. This can really take the hassle out of hiring new employees as well as ensuring contractors are looked after and paid accurately and on time.
How can outsourcing payroll save money?
Essentially, an effective payroll service will save your business time (and time is money) by freeing up administrative and human resource staff, who can concentrate their resources on helping the business grow.
Outsourcing payroll isn’t as expensive as you might think, and getting all employers paid accurately and abiding by all employment laws can really save money, so it can be a very cost effective measure.
In addition, the right payroll provider can save you money by avoiding fines (employment legislation changes regularly and it can be hard with limited resources to ensure these are kept on top of), implement an online system to gradually reduce paper and postage costs, reduce payroll software expenses and reduce any costly disputes over pay.
So it is certainly worth investigating the improved efficiency, savings and time management that an outsourced payroll provider can supply, particularly if you are currently recruiting. Hiring and managing staff can be a time consuming and difficult process; letting a specialist payroll company take care of much of this can really help you get back to doing what you do best, which is helping your business grow.
About Author: Sarah Stewart has written this article on behalf of STR Group, a leading recruiter in Technical, Health and Professional sectors.