Software-Fronted Bureaus vs. Fully Managed Payroll Services: Why do Businesses Choose to outsource?

Payroll management is the backbone of every business, directly impacting both the organisation and its employees. It encompasses various financial aspects, including technology, strategy, and compliance.

Outsourcing to payroll bureaus has become a strategic choice for many businesses seeking expertise, contingency planning, time savings, and reliable support. However, not all payroll providers are created equal. While software-fronted bureaus promise efficiency, they often leave significant burdens on their clients. In contrast, fully managed payroll services offer a comprehensive solution, handling all aspects of payroll with minimal client involvement, thereby alleviating these burdens.

Common Pitfalls of Software-Fronted Bureaus

System-fronted payroll providers often require clients to perform up to 80% of the work, such as data input and manual adjustments. This approach shifts the responsibility onto HR teams, who are experts in employment law but may not have payroll compliance expertise. The result is an increased risk of input errors, which can lead to rerun charges and delays.

Training is essential for front-end systems. If the person responsible for inputting payroll is unexpectedly absent, another employee would need to be quickly trained to take over. This situation increases the risk of errors, incurs additional training costs, and jeopardises the accuracy and timeliness of employee payments.

Many of these providers validate data only after payroll runs. When errors are discovered post-processing, clients often hear, “That is what you input into the system.” This reactive approach adds frustration and strain.

Navigating front-end systems often results in numerous support calls and email queries, which are managed through a ticketing system. Urgent payroll queries require immediate responses, but ticketing systems can have a 48-hour response time. Additionally, larger bureaus typically do not liaise with HMRC on behalf of clients, causing clients to spend valuable time on hold with HMRC instead of addressing other priorities.

How a Fully Managed Payroll Service Solves These Issues

Pay Check’s fully managed payroll service is designed to address these challenges head-on:

Simplified Payroll Portal
We offer a user-friendly portal that allows clients to upload payroll instructions through Excel templates, time and attendance exports, HR exports and HCM system exports. This approach reduces the need for specialised training and makes it easy for any team member to handle the task. Additionally, Pay Check validates data before the payroll is run, proactively addressing unclear instructions to prevent errors and delays.

Streamlined Contingency Planning
Unlike system-fronted solutions, Pay Check eliminates the need for rapid cross-training in the event of staff absences. This ensures seamless payroll operations and accurate, timely employee payments without added stress.

Support with Pay Check

Customer support can significantly impact your experience when outsourcing payroll. Pay Check offers fully managed, comprehensive payroll services with a strong emphasis on client support, ensuring a transparent and straightforward partnership that delivers long-term value.

Rapid Response Times
Instead of relying on ticketing systems with 48-hour response windows, Pay Check have an SLA of answering calls within three rings. This means clients get immediate support when they need it most.

HMRC Liaison Services
Pay Check goes beyond standard payroll processing by handling related HMRC queries and registration of new companies PAYE schemes on behalf of clients. This saves businesses valuable time and ensures compliance with regulatory requirements.

Reliable, Local Support
Some bureaus have offshored support, which can result in support times being misaligned with UK hours. This means that urgent queries may not receive a quick response. The support team, headquartered in London, UK, provides reliable service aligned with local business hours. Each client is assigned a dedicated contact, supported by a collaborative team, ensuring continuity even during absences.

Equitable Support Model for All Clients

Unlike larger bureaus that tier their support based on company size or spend, Pay Check treats all clients with the same level of priority. This equitable support model ensures every business receives the highest quality service, regardless of their size.

Flexibility and Integration

Pay Check focuses exclusively on delivering best-of-breed payroll services. This specialisation allows the company to remain flexible, partnering seamlessly with leading HR software, time and attendance systems, and HR support services.

Additionally, businesses benefit from streamlined operations and enhanced efficiency, leading to improved overall performance.

FAQs

Which businesses benefit the most from fully managed payroll?

Outsourcing payroll can be highly beneficial for businesses of all sizes. Small and scaling businesses experiencing rapid growth can focus on their core operations and expansion by outsourcing payroll. This allows them to dedicate more time and resources to business growth and establishment. Larger businesses with complex payroll requirements also find outsourcing beneficial, as it helps them manage intricate payroll requirements efficiently and reduces administrative burdens.

Are fully managed payroll services a cost-effective solution for small businesses?

Managed payroll services are cost effective for small and rapidly scaling businesses. The bureau can save you money while alleviating the stress of in-house training, software management, and compliance navigation on your behalf as you focus on business growth.

I have a dedicated in-house payroll manager; would fully managed payroll services still be useful?

It depends on the scope of their current responsibilities and the business size. While fully managed payroll can fully eliminate the need for an in-house payroll specialist, having someone to send in the payroll information for processing can still be required dependant on the complexities of your payroll. Additionally, if your payroll or HR manager is on expected or unexpected leave there will be someone who can take over the responsibilities of payroll while they are away.

On a separate note, many in-house payroll managers excel in analytical administration. By freeing up their time from end-to-end payroll tasks, their skills could be better utilised in other revenue-generating sectors within the business

Conclusion

Outsourcing payroll is a strategic long-term decision, and choosing the right partner is essential. Pay Check stands out with our expertise, proactive data validation, responsive support, and commitment to treating every client as a priority. By focusing solely on payroll excellence and partnering with best-of-breed solutions, businesses can streamline operations and reclaim valuable time.

Take the next step toward hassle-free payroll management. Contact us today to learn how we can support your business.

Written by

Isabella Zermani
Pay Check
paycheck@paycheck.co.uk
+44 (0) 20 7866 4600