There Are Many Benefits to Outsourcing Your Payroll
If you run a big business with 500+ employees, you can afford to run your own payroll department. However, there are not so many businesses of that size, and for smaller businesses, doing payroll is a money burner.
When you consider the amount of hours that your employees spend on payroll activities when they should really be doing something worthwhile, plus the costs of software, training, printers, printing payslips, writing out cheques or paying money directly into bank accounts, filing returns to HMRC, and so on, you will find that it is almost certainly cheaper to use outsourcing payroll solutions in the UK rather than doing it yourself in-house.
Running payroll can take up a lot of staff resources, particularly if your staff running it are not specifically trained to handle it or are doing it as a part of their overall tasks. When you outsource your payroll, you then free up these people so that they can use their time more efficiently and contribute to your revenue. Payroll is, after all, a function that simply costs you money. Depending upon the size of your business, you may even be able to let one or two staff members go.
Your payroll provider won’t go sick
Another big advantage of using outsourced payroll solutions in the UK is that the payroll provider will always be there. When you have staff members doing it in-house, you have to take into account things such as sickness and holidays. When you outsource payroll, you don’t have to worry about what to do if that staff member goes off sick three days before payday.
On top of that, there is always the danger that a staff member doing payroll may decide to up sticks and leave. That means that all the knowledge that they have built up suddenly goes, and you are left with the nightmare of dealing with your payroll on your own. After all, just because the staff member doing payroll has left doesn’t mean that the rest of your employees will happily forgo payday for a couple of weeks while you sort it out.
Of course, another matter is accuracy. Payroll has to be spot on because HMRC can get very upset if you make mistakes and will cheerfully start sending you fines if this happens. Payroll outsourcing companies have systems in place that run swiftly and smoothly and are far less likely to make an error than your own staff.