The ultimate guide to payroll outsourcing

Payroll is a famously time-consuming and stressful part of any business, becoming exponentially more complicated the more employees you have. But paying your employees accurately and on time is a critical part of the business, so you need some for

That’s where payroll outsourcing comes in. Specialist payroll providers can take some or all of your payroll process out of your hands and take care of it for you.

There are several forms this service can take, the most effective payroll outsourcing will account for your unique needs.

Exactly how your payroll service will work will depend on the service you choose. Typically, you will give your employee data and any other information required to a provider, who will then manage the payroll for you.

Payroll providers will provide different levels of service depending on what you need and how much you’re willing to pay, but the services they offer can include:

• Calculating pay

• Filing taxes with HMRC

• Calculating deductions

• Paying your employees

• Keeping accurate payroll records

Every business with employees needs to operate a payroll department in some capacity, whether that’s as its own entity, or as extra responsibilities put on your HR or finance department. Avoiding errors is critical, as this can delay pay, harm employee engagement and lead to fines from HMRC.

Therefore, investing in a payroll service can remove a lot of headaches, and let you focus on your business goals.

Payroll services aren’t a one size fits all fix. There are several different forms that a payroll service can take. Consider which of the following best fits your needs.

Keeping payroll in-house can give you extra control, but sometimes it’s better to leave things to the experts. By outsourcing, you don’t have to stress about compliance or about maintaining a pipeline of payroll talent. You can just hand things off to someone else.

There are plenty of benefits that come from outsourcing your payroll. Here we’ve highlighted the key five benefits that any business can get value out of regardless of how big they are or what kind of employees they have.

Accuracy

Because they’re typically devoted almost exclusively to payroll, payroll providers utilise software (such as real-time payroll) that can automate a lot of the most labour-intensive aspects of the process. That minimises the risk of errors.

Data security

A reputable payroll provider relies heavily on a reputation for keeping the data they are entrusted with secure. They’ll make sure to invest heavily in cybersecurity features to ensure your data is protected.

Legislation updates

Keeping up to date with government legislation is an incredibly time-consuming task, especially because things keep shifting. Payroll providers will handle that for you.

Cost-efficiency

Payroll services do cost money. However, compared to the costs of having to grow and maintain your own payroll department, as well as the costs of fines that come from noncompliance, you may find your payroll service will save you money in the long term.

Free up resources

Without having to stress about payroll, employees can focus more on other tasks that will help grow the business.

The exact cost of a payroll service will vary, depending on the service you want and the number of employees you have. Payroll services needn’t be seen as a luxury, as you can find a package that works for your needs and budget.

The vast majority of payroll providers will work with bespoke quotes rather than being able to give you a price outright, so its best to ask for a quote directly.

If you decide you want to outsource your payroll, there are several aspects to consider to ensure you’re getting the most effective package possible.

With almost 40 years of payroll experience to draw on, MHR offers our managed services customers complete confidence and peace of mind in the security and accuracy of their payroll. We can provide a bespoke solution that accounts for the unique needs of your business and your budget.