When it comes to getting help with managing your company’s payroll, there are two main options: managed payroll services and payroll bureaus. Both provide essential support in ensuring your employees are paid accurately and on time, but they work in slightly different ways.
In this blog, we’ll break down what makes managed payroll and payroll bureau services different, and which might be the right fit for your business.
A payroll bureau is a service provider that takes over the processing of your payroll on a regular basis, usually through a more transactional approach. Essentially, a payroll bureau will handle the calculations, statutory deductions, and processing of payslips for your employees. You send them the necessary data, such as hours worked or salary details, and they’ll do the rest.
Data entry: You need to provide all the information for each payroll cycle (e.g., hours worked, salaries, bonuses).
Processing: The bureau handles the calculation of wages, tax deductions, and contributions.
Delivery: Once processed, they will send out the payslips and submit payroll information to HMRC on your behalf.
Payroll bureaus offer a straightforward service and are usually best suited for businesses with relatively simple payroll needs, or for those who need occasional support but still prefer to maintain control over the day to day operations.
Managed payroll, on the other hand, is a more comprehensive service designed for businesses looking for a more hands-off approach. With managed payroll, you gain access to a dedicated team that oversees every aspect of your payroll process, often providing proactive advice and ensuring that your business remains fully compliant with ever changing regulations.
Full service: The provider takes care of everything from data entry, processing, and distribution of payslips, to managing compliance issues and offering advice on best practices.
Compliance management: Managed payroll services keep your business in line with the latest legislative changes and tax requirements, reducing the risk of errors and penalties.
Tailored solutions: They can offer more tailored services, including assistance with employee benefits, pension management, and complex payroll situations.
The key difference here is that managed payroll is designed to take a much more proactive, strategic approach to payroll management. It’s ideal for businesses with more complex needs, those looking for a high level of support, or those who want to offload the entire payroll responsibility entirely.
The choice between managed payroll and a payroll bureau really depends on the size and complexity of your business.
If you’re a small to medium-sized business with straightforward payroll needs, a payroll bureau could be the perfect solution. It’s an excellent way to take care of your payroll with minimal effort while keeping things simple.
However, if you’re looking for a more hands-off, comprehensive service, especially if you have a large or diverse workforce, or complex payroll structures, managed payroll might be the better fit. It’s ideal for businesses looking to ensure compliance, reduce risk, and get expert advice along the way.
Understanding the difference between managed payroll and payroll bureau services can help you make an informed decision about which service is right for your business. While both offer invaluable support, managed payroll provides a more thorough, strategic approach, while a payroll bureau focuses on more basic, transactional payroll processing.
By choosing the right service for your needs, you can ensure that your payroll is managed efficiently, accurately, and with minimal stress, giving you more time to focus on growing your business.
If you’re ready to streamline your payroll and take the stress out of managing it, a managed payroll provider like Phase 3 could be the perfect solution for your company.
Assad founded Phase 3 in 2004 and is responsible for the strategy, growth and finances of the business.
