Benefits of Outsourcing Payroll

Aug9

Posted in Outsourcing

Still processing payroll in-house? There are lots of reasons to consider outsourcing…

Outsource memo in notebook with part of laptop, receipts and calculator

Outsourcing payroll cuts costs

There’s a cost to running an in-house payroll. Of course, there’s a cost to outsourcing it to a company like Just Payroll Services too, so to establish the scale of the cost benefit, consider how much you’re currently paying (in terms of time as well as materials) for the following:

  • Collating timesheets
  • Staff to run payroll
  • Software licences for any accounting or payroll software
  • Printing costs
  • Payslip distribution
  • Payroll staff training
  • Staff cover to accommodate leave and sickness

Outsource your payroll, and you’ll cut that lengthy list to a single task – collecting the timesheet information. Everything else will be delivered by your payroll provider. Small wonder then that virtually every client we speak to cuts costs by outsourcing.

But costs are just the tip of the iceberg…

Outsourcing improves accuracy

It’s rare for SMEs to be able to afford to have staff processing payroll and nothing else. In-house teams invariably have other work on their plates. That can mean payroll gets relegated in priority, rushed as end of month approaches, or squeezed in amongst other duties – all of which can result in errors that cost time and money to fix.

A payroll processing company only handles your payroll. There is no other focus, which means the risk of error is reduced.

Outsourcing brings expertise

Something else that reduces error rates is having somebody processing your payroll who knows every nook and cranny of the payroll software – and knows how to apply it.

Outsourcing payroll gives you a contingency

For many SMEs, payroll is one person’s domain. They know their system inside out and they may have trained someone else up in the basics. But you know that every month payroll throws up something unusual that leaves whoever’s holding the fort saying, “I’ve never seen that before.”

Outsource, and if your regular processor is on leave, there’s lots of equally trained and experienced processors ready to step into their place.

Outsourcing cuts risk

Keep your payroll in-house and the burden of staying up to date with legislation is yours. From annual changes in tax and NI to big initiatives like workplace pensions, it falls to you to ensure you’ve a) spotted the change and b) implemented it correctly.

Miss something and you pay the cost in terms of delay, inconvenience and fines.

Outsourcing leaves you free from such worries, because ensuring you are and remain compliant is our concern.

Outsourcing payroll is faster

Every month’s payroll is time critical, and the consequences of failing to pay your people on time can be profound. That can place enormous stress on your payroll team, all of which can be avoided by outsourcing. Because our payroll people are specialists, your deadlines are never in doubt.

Outsourcing payroll frees resource or increase efficiency

Outsource payroll and you free up an awful lot of time for your staff to be productive elsewhere. You could reduce staff numbers (and associated costs). Or outsourcing could be the perfect solution when your in-house processer announces their desire to retire, reduce hours or change duties.

Discover how outsourcing could benefit your business. Talk to us now.