Having a dedicated payroll team in your company may be beneficial, but it can take a while to find candidates with the necessary skills. Even when you do find the right people, hiring them isn’t cheap.
A large number of companies decide to outsource their payroll, as it can prove to be an efficient and cost-effective way to manage processes without the hassle of hiring someone in-house.
Here are some reasons why outsourcing could be the right choice for you.
What is payroll outsourcing?
If a company decides to outsource its payroll, it will hire an external company like ours to handle all payroll functions. This will typically include:
- HMRC compliance
- enrolling staff in workplace pension schemes
- onboarding new employees onto the correct PAYE scheme
- calculating and deducting tax and National Insurance contributions (NICs)
- sending payslips to staff.
As well as saving your company money, outsourcing can bring a number of other benefits to the table.
Free up time
Suppose you don’t currently have a dedicated payroll specialist and rely on either yourself or other members of your team to handle the process. In that case, outsourcing will allow whoever is carrying out the role to reclaim time which could be better spent on their other responsibilities.
With the focus shifted to the more crucial roles in your company, you won’t risk falling behind on essential tasks, and knowing that your payroll is being efficiently managed will give you peace of mind.
You’ll also save any time you would use to recruit and train a dedicated payroll officer.
Eliminate the need for a new system
When you consider your payroll, you may just think of the person running it, but you also have to factor in the system your company will use.
By outsourcing, rather than investing in new software, you’ll be able to hand the process to a firm with the latest accounting technology already in place, cutting out any further upfront costs.
Avoid errors
Making mistakes is a natural part of life, but if your payroll is handled by someone without the necessary s experience or training, they could happen too often.
Choosing to outsource to a professional will reduce the chance of errors, omissions or late payroll tax filings significantly.
Because your outsourced payroll specialist will have a deep understanding of the system, you can rest assured that you’ll meet all your reporting obligations to HMRC and your PAYE reporting will be done on time.
Keep on top of any changes
Ever-changing tax regulations mean it’s important to be vigilant when it comes to your payroll.
Increases to the national minimum wage or changes to NIC thresholds can sometimes disrupt your processes. An outsourced accountant will be ready for anything that may affect your payroll, and will be quick to implement any adjustments whenever necessary.
We can help
We’ve helped countless companies manage their payroll over the years. Our specialist team will handle your PAYE scheme obligations with care and deal with HMRC on your behalf if you need.
Get in touch with us today to discuss outsourcing your payroll.