Outsourcing payroll to save time and money
Regardless of the size your organisation , you are responsible for all the payments made to and on behalf of your staff. This applies even if the only person on your payroll is yourself. According to HM Revenue and CustomsÂ reports regarding deductions, PAYE and national insurance must be submitted to them electronically on or before each payday.
For small businesses without a dedicated HR or finance department, this can be a major headache, taking up precious time that would be more profitably spent engaged in business generating, rather than business running, operations.
Outsourcing payroll operations may involve more business expenditure on the face of it, but the time it frees up and the reduction in worry over whether your facts are figures are submitted correctly can more than offset the payroll costs.
Knowing your costs
Small businesses often operate on a very tight budget. While it can be tempting to save money by performing payroll operations yourself, and worrying to consider bringing in a third party to do this work for you, you will also have the peace of mind in knowing exactly what your upfront costs each month. Making budgeting a much more simple and straightforward operation means you can concentrate efforts where it’s most profitable – in generating and growing your business.
Keeping up with legislation
Do you really know all there is to know about the statutory requirements involved with correctly assessing and submitting employee details to HMRC? Ultimately it is your responsibility to understand payroll ins and outs. When you outsource your payroll to a reputable third party such as PayrollSimply, they take over the responsibility of keeping up with the latest legislation. All reports are submitted on time and to your requirements, releasing you from the need to deal with any government agencies, including HM Revenue and Customs.
No training or IT costs
Payroll software can be confusing to learn unless you are specifically trained in this area. Most business owners aren’t, which is why larger companies have payroll and finance departments as soon as they can afford them. With payroll outsourcing there is no complicated accounting software to learn, no need for specialised staff (or the office space for them to work in) and no associated staff costs either. This alone can offset the price of using a payroll outsource service.
Deadlines are always met
You may be on good terms with your staff, but how long would that last if suddenly their pay was late or too much tax had been deducted? Running your own payroll means dealing with the short term inconveniences of accounting staff absences or holidays, which can be difficult enough when they are planned but which can cause serious disruption when they’re unplanned, because of illness for example.
Outsourcing your payroll requirements ensures your staff are kept happy because they’re paid on time every time, with the correct level of taxation of benefit taken into account.
Business success is elusive enough, but by having smart systems in place to take of the mundane, regular tasks, you have the peace of mind of knowing that important behind the scenes operations are professionally taken care of.