Payroll Outsourcing Can Save a Company Money
Many businesses in the UK find that they can use outsourcing to save time and money for some of the things that they need to do.
For instance, a manufacturer may have designed a piece of equipment or a tool that needs a certain part, but the machine to make that particular part would cost £200,000. If there is another engineering firm that already has such a machine, then the obvious answer would be to outsource the manufacture of that. It saves a huge investment when maybe only a handful of those parts are required every month.
There are plenty of other things that can be outsourced too. Many of them are time-consuming jobs that don’t add anything to a company’s bottom line yet need to be done.
One such job that almost every business has to deal with is payroll. This is something that gets more and more difficult the larger a business grows and the more employees it takes on. You have different employees on different rates of pay, staff members who get benefits, salesmen on commission whose pay is different every month, and more. Using payroll outsourcing services in the UK has become far more common since the law changed in 2013. This was when HMRC introduced real time information to the PAYE system.
Reports have to be submitted every time an employee is paid
What this means is that employers now have to submit tax deductions and reports every time an employee is paid rather than just at the end of the year. For employers who pay monthly that is bad enough, but for those who pay staff weekly it is a total nightmare.
This is why so many employers are using payroll outsourcing services in the UK today. Apart from any other consideration, payroll has always been a job that has to be done, but that adds nothing to the bottom line. Quite the opposite. It is merely an overhead.
While it does depend on the size of a business and the number of employees that it has, many companies find that it saves them a considerable amount of money in addition to the amount of “aggro” that payroll can cause. This is because companies that provide payroll outsourcing are specialists in what they do. They keep up to date with every last little change in the regulations, and they have systems in place which make running payroll for their clients faster and more accurate.