Outsourcing Your Payroll: The Savvy Choice For Business Owners Payroll. It’s a necessity for any business that employs staff. Whether you process your pay weekly, fortnightly or monthly, it can present a huge administrative burden. Not only is it time consuming calculating everyone’s pay accurately, there is specific legislation that you need to adhere to. Outsourcing your payroll is often the solution . Your Legal Payroll Obligations The HMRC advises that every time a member of staff is paid, you are required to: Keep a record of their pay, including their salary, wages and any other payments Calculate deductions, such as tax and National Insurance Calculate the employer’s National Insurance contribution Generate a payslip for each employee Report their pay and deductions to HMRC – this is done through a Full Payment Submission (FPS)
The above can be confusing and challenging to say the least! This is why many businesses find that outsourcing their payroll helps them hit their legal obligations.
In-house Payroll Challenges
As with any administrative task there are all sorts of challenges linked to payroll. These range from the need for legal compliance to the time and cost pressures imposed on a business.
Payroll isn’t just about making sure your employees are paid on time; there are all sorts of legal implications to consider. Is an employee is entitled to sick pay for the time they have had off? What about compassionate pay in extenuating circumstances? Have you updated your payscales in line with the National Minimum Wage? You may be faced with these tricky situations when running your payroll in house. Employment legislation is changing all the time. So unless you’re willing to invest in the ongoing professional development of your staff, you may fare better outsourcing your payroll.
Having staff on payroll can be an administrative minefield. As well as the above, you need to make sure you keep track of any ‘out of the ordinary’ payments. There are a variety of different pay scenarios that could arise within your company. A handful of employees might have their pay processed as usual. Whilst another group might be entitled to a bonus. Additionally, a select few may be in receipt of payments for the time they’ve spent travelling. Keeping track of exactly who is owed what and when is no easy feat. Bearing in mind how crucial it is to get these payments correct, there is a real business case for outsourcing your payroll.
Knowing there is someone who can deal with payroll issues as they arise is a major benefit for businesses. Payroll takes hours to complete and when ran in house, it’s time that needs to be set aside. Outsourcing your payroll opens you up to experts who’s time is purely payroll-focused.
Employing someone with the experience to process payroll comes as an expense to any sized business. The
average salary of a payroll administrator is estimated at around £25,000, which is money that could be allocated to outsourcing your payroll at a fraction of the cost. Outsourcing Your Payroll: What Should You Look Out For?
Outsourcing your payroll is far from a new concept – and that’s because it works. Companies are keen to enlist the help of experts in order to save them time and money, and payroll is no exception.
Deloitte’s 2016 Global Outsourcing Survey found that 53% of businesses outsource their tax affairs, while 47% rely on an external company to deal with HR issues. These figures mark an increase of 17% and 32% respectively.
Entrusting a third party to deal with payroll can alleviate administrative strain, while also freeing up time across your business. This is the case for a company of any size. Whether a business has a handful of employees or thousands, outsourcing your payroll is cost-effective and efficient.
Choose A Payroll Provider That Is ISO 27001 Certified
One of the key criteria to look for is ISO 27001 certification. This accreditation is awarded to organisations who keep their information assets secure. By information assets we mean financial information and employee details – two key components of any payroll.
GDPR also came into force in May 2019, which places another layer of legislation on businesses. If you’re found to be in breach of these laws you face a fine of up to 10 million euros, or 2% of your annual profits. It’s therefore your duty to make sure your payroll outsourcing company meets these standards. Choosing a reputable provider with a proven track record is essential.
It’s worth outsourcing your payroll to a company that provides electronic payslips. Not only is it more efficient, it will also help the environment. Sustainability is becoming increasingly important for small and medium-sized businesses. Therefore, taking steps towards a paperless payroll is an easy way of making a more environmentally-friendly future a reality.
Electronic payslips also help you keep payroll details secure. It’s also a much simpler way of recalling past payslips should they ever be needed. Online portals allow your employees to find all their past payment records and any other relevant information.
Choose ELAS for your outsourced payroll solution
How do you choose a provider that will not only meet your needs, but also be legally compliant?
At ELAS, we’re able to process your payroll as frequently as you require and you can preview your reports online before they are set live. Our online portal provides your employees access to payslips, P60s, reports and any other information. We also offer a customisable reporting function that’s tailored to your requirements.
We are GDPR compliant and our ISO 27001 certification will give you an extra layer of reassurance.What’s more, our payroll service is backed by our team of employment law experts. This means you can be safe in the knowledge your payroll is processed accurately and legally.
To find out more about outsourcing your payroll to ELAS call our team on 08450 50 40 60. Alternatively you can fill in the form to the right and a member of our team will be in touch!