5 Reasons to Outsource Your Payroll
Colleen Bloomfield, one of our ProAction HR specialists with extensive experience in payroll management, takes a look at the fundamentals and benefits of outsourcing your payroll.
For many payroll is not necessarily viewed as an important part of an organisation as it isn’t client facing or involved in production, development or strategy.
However, getting payroll right is vital for the most valuable asset your organisation has, your people!
Processing your payroll can often feel like a minefield as it includes calculating salaries, tax, deductions, and pension contributions. That, along with HMRC’s many legal reporting requirements, can often mean it becomes a complex task that requires accuracy and attention to detail whilst ensuring your business remains compliant. Little experience or limited knowledge in these areas can often lead to pressure resulting in costly mistakes and disgruntled staff.
In this article we take a look at 5 reasons why outsourcing your Payroll could benefit your business.
1. Access to specific expertise
Outsourcing allows you to make use of specialised expertise which may not be available in house. For example, at ProAction HR we take the time to get to know and understand your business and your payroll needs and can then advise on all related issues such as tax compliance, benefits administration and the laws surrounding these.
2. Compliance with legal reporting
HMRC and the Pensions Regulator rules around reporting are constantly evolving. Failure to comply with these regulations can result in financial penalties and legal action. Outsourcing means any changes that may affect your payroll, from changes to employees circumstances to government updates on tax or national insurance rules can all be accommodated. Likewise this expertise will ensure your company is fulfilling all your tax obligations, allowing you to sit back and relax in the knowledge that your business is totally tax compliant, so minimising the risks or legal issues or damage to reputation.
3. GDPR/Use of sensitive information
This is not always front of mind but it is critical to be compliant. Outsourcing your payroll function will ensure you are using a GDPR approved system. This means there will be a number of measures in place to guarantee the safety of you and your employee’s personal data. In addition to allowing the implementation of appropriate security measures and obtaining consent for data processing, relieving you of the burden of this massive legal responsibility.
4. Save time and money
Managing your payroll in house can be costly to run and manage and a very time consuming task. Outsourcing can add value to your business by using expertise to reduce your time and resource needed for payroll processing, allowing you to focus on the core aspects of your business and save you some money too!
5. Keep your staff satisfied
Paying staff accurately and on time is crucial to their job satisfaction, employee wellbeing and retention. They are more likely to feel valued and appreciated which in turn will lead to higher job satisfaction, morale and productivity.
How can ProAction HR help?
We have developed a dedicated Payroll Outsource package that can:
Process your payroll accurately and on time.
Provide tailored reports & data you need for payments, journals and book keeping.
Provide easy to understand electronic payslips sent direct to your employees.
Ensure GDPR compliance.
Streamline your auto enrolment.
Respond to queries quickly and professionally.
Communicate with pension providers & HMRC.
Mange CIS/Contractor payments.
Complete starter/leaver paperwork.
Process attachment of earnings/ court deduction orders
Provide Year End processing.
Send email reminders for processing deadlines.
Offer dedicated 121 support from a payroll professional