The Benefits of Outsourcing Managed Payroll Services
Outsourcing business functions has become very popular among businesses that do not want to commit to recruiting for in-house positions, and firms looking to concentrate on growth, whilst outsourcing the time-consuming functions that can prevent focus on other business areas. One of these the popular tasks for outsourcing is managed payroll services.
Using an accountancy firm for managed payroll services is an effective way to outsource administrative functions which involve heavy time commitment, but there are many other benefits.
Ensuring compliancy – with many legislative changes executed by HMRC around taxation, National Insurance and pensions, business owners would need to keep abreast of these, or employ someone that can, in order to remain compliant. Payroll regulations can be complex and changeable, so working with an expert that knows the legislation inside and out – and is geared up to manage elements such as pensions and auto-enrolment duty fulfilment – is advisable.
Achieving accuracy – getting payroll right is crucial to keeping employees happy. There can be a multitude of variances in tax duties and salaries to consider from employee to employee – from overtime, pay rates and pension contributions to maternity/paternity or sick pay – so being accurate from an employee satisfaction perspective is important. Additionally, being accurate from a HMRC compliance perspective is essential in avoiding penalties for getting employee tax wrong! Disgruntled employees or tax officials is something every business owner will want to avoid.
Reducing costs – the cost of employing someone, or using existing resource and man hours to fulfil payroll duties can be a real false economy. Throw in any rectification of mistakes, time spent in finding out or getting on top of any legislative changes and double checking the numbers and it can soon become a real drain on company resources. Most managed payroll services offer a flexible, scalable approach, meaning you’ll only pay for the services you need – perfect for if business activity and employee number fluctuate. Many providers will offer bespoke services to ensure requirements can be met whether payroll is needed weekly, monthly or at any other frequency level. Outsourcing also negates additional software and time in training staff to use it.
Staying secure – when dealing with confidential and sensitive information on employees, security is of the utmost importance. Investing in managed payroll services ensures payments are reliable and secure – an important consideration in reducing chances of fraud.
For more information about the managed payroll services Adams Moore offers, call 01827 54944.