Why outsourcing your payroll can make perfect business sense
The pros and cons of outsourcing - what is the answer? What are the advantages of outsourcing payroll?
Apart from removing the regular stress and trauma that payroll compliance inevitably brings, outsourcing your payroll can be a perfect business decision too – a solution that can bring measurable benefits in costs, efficiency and loyalty to organisations large and small, yours included, and in today’s world of quick communication outsourcing has become even easier.
Consider the following:
• Outsourcing your payroll will give you peace of mind:
You, personally, and your team, get peace of mind, resulting in better focus on work, improved productivity and staff loyalty, from knowing that your people are being paid properly - on time, every time - and that your compliance responsibilities are being taken care of.
And importantly, outsourcing gives you access to essential skills and knowledge at low cost, and with over 43,000 pay-related cases a year ending up in employment tribunal, it’s a part of your business that you simply can’t afford to get wrong.
Using a trusted, reliable and professional firm to process your payroll, here in the UK, will provide you, and your staff, with the reassurance and confidence that your onerous payroll responsibilities are being properly and efficiently discharged.
• Outsourcing your payroll can minimise your risks of fines, penalties and inspections:
The financial penalties for failures to meet PAYE compliance regulations, especially under the new RTI regulations, can not only be severe, but will involve wasted management time, employee dissatisfaction and vulnerability to emotionally and physically costly Inland Revenue PAYE Inspections.
It is difficult, especially for smaller businesses, to engage, train and retain suitably reliable, qualified or skilled staff, and inadequately trained staff can lead to expensive mistakes and penalties for non compliance – new and part time staff, especially, leave you extremely vulnerable.
• Outsourcing your payroll can save you substantially on software, hardware, manpower and consumables costs:
Software costs - payroll programs have an initial acquisition and installation cost – not to forget the ‘learning curve’ and ‘time costs’ as you or your team grapple with, and get to grips with, how the program works. Then add to that the annual updates (tax codes, rates, etc) and annual software support subscriptions, and the overall cost of maintaining a payroll in-house can become more expensive than you might realise.
Staff costs - payroll staff costs can be considerable when including their wages and er’s NI, cover for holidays, sickness, maternity, etc, and all the hassle these issues involve, and staff training (because inadequately trained staff can lead to expensive mistakes and penalties for non compliance – new and part time staff, especially, leave you extremely vulnerable.)
Hardware costs – the cost of the computer used and its maintenance, together with a dedicated printer, although getting better, can still cost you four figures every three or four years.
Consumables – the cost of specialised security stationery, printer cartridges and postage all add up over the year.
Security – the time and hassle of regularly backing up the payroll data, not to forget internal security issues relating to the handling of sensitive individual records.
• Outsourcing your payroll will leave you free to do what you do best – run your business:
Why get involved with the ever increasing load of regulations that make payroll operation so exceedingly complex and time consuming. What if, because you were bogged down on routine issues, you miss a significant sales opportunity – an ‘opportunity cost’ you can’t measure?
Free up your time to focus on what you are best at - on what’s important in your business and on what really adds value to your bottom line.
There are many hidden savings to outsourcing your payroll - in addition to the obvious ones - all of which can add real profit to your business.
Regardless of how many employees you have, whether it's two, three or four, or fifty or a hundred, give us a call now, on 01227 451400 and, whilst outsourcing isn't right for everyone, SME Payroll Services might just have the perfect solution for you.