Outsourcing Your Payroll Makes A Lot Of Sense
More and more businesses in the UK are outsourcing their payroll tasks to specialist providers, and with good reason. The more employees that you have, the more complex your payroll becomes, and you have to get everything right, because otherwise you can be on the receiving end of fines from HMRC.
In the UK the number of businesses that outsource payroll rose dramatically after the changes in legislation made in 2013. That was when HMRC introduced RTI – Real Time Information – to the PAYE system. As an employer, you suddenly had to submit tax deductions and reports every time you paid an employee instead of just at the end of the year. So, in effect, the amount of work to run your payroll multiplied by 11 times! And a lot more if you paid your employees on a weekly or fortnightly basis.
This became a very good reason for many businesses to outsource their payroll to specialist providers such as ourselves at Pay Check. As one of the major payroll companies in London we have over 1,500 clients and we produce more than 50,000 payslips every month.
The problem is that if you are a small business, you probably do not have enough employees to justify taking on an in-house payroll manager. This means that you either have to do it yourself or get one of your staff to take on the role in addition to their main function. Of course, doing it all yourself is a lot of hassle and it only gets worse as your business grows.
The Alternative Is A Lot Of Hassle
But, the alternative is a lot of hassle too. If you are going to have one of your current employees take over the role it means that they will need training, so that they can understand how to do it, and they will have to keep up to date with all of the latest legislation and tax procedures. Another issue is that, even though you spend money on having them trained in payroll, they may just not be very good at it. Or perhaps they don’t really want to do it but feel that they have to because you asked them to. This can easily lead to errors.
There is also another issue that can arise. If you have someone in-house doing your payroll, whether that is a current staff member or even a specialist brought in as your payroll manager, what happens if they are off sick? Or worse, quit because they have found what they consider to be a better job? This could leave you with a payroll nightmare come the next payday. Even if your payroll manager never goes off sick or doesn’t quit, they still need to have holidays.
When you outsource your payroll to us at Pay Check we can take care of all of your payroll or just certain functions according to your individual wishes, because our systems can be tailored to your specific needs.
We are also a BACS approved bureau. That means that we can send BACS payments to your employees, to HMRC, and to other third parties such as Childcare Voucher providers. We only charge you an agreed monthly fee for handling all of your payroll needs, and there are no hidden charges or other surprises.
Our prices start at just £35.00 per month, and this includes secure payroll and payslip software (which would probably cost you in the region of £1,500 a year if you did it yourself).
By outsourcing your payroll to us, you get rid of what is a really difficult job for most people, and you get peace of mind that your payroll is compliant with everything that it should be.