With all that the modern business has to contend with, there is little question that payroll can present some serious obstacles to businesses of all sizes. This is why so many companies choose to outsource payroll services, freeing up time to focus on their own areas of expertise while allowing payroll experts to do their job.
What are payroll services and what do payroll companies do?
Businesses tend to hire payroll companies for a number of reasons but mainly because payroll has become too complex and time-consuming to manage, or when there is a transitional point in the delivery of payroll – for example if the person responsible for payroll leaves the business or if a new system is implemented. A payroll service company is able to provide clients with a number of payroll services to help the business with their payroll, pensions and compliance needs. Services generally include Legislative compliance, processing and calculating payroll, handling all employee and employer payroll correspondence and depositing funds.
What are the benefits of outsourcing payroll?
It saves time
As mentioned, one of the main benefits of outsourcing your payroll needs is that it frees up time that could be better spent elsewhere. Keeping track of deductions, new hires, paid time off and a whole host of other elements can be very time-consuming – especially in smaller businesses.
Take advantage of expert knowledge
One of the biggest advantages of outsourcing payroll is utilising specialised knowledge of payroll experts. Many business owners and staff don’t have the time to become experts in this area, but by using an independent payroll consultant, you can make use of experts who work in the world of payroll for a living, helping your business navigate new regulations and changes.
It can reduce costs
For small to medium-sized businesses, outsourcing payroll can even reduce costs for your business. If you have a dedicated in-house payroll process, the labour hours that your employees are devoting to payroll services can really add up money-wise, not to mention the costs for licensing payroll products and having BACS licenses or banking costs. Employing the right payroll company could actually be cheaper and a smarter business move for your company.
Improved security for payroll services
With so much personal information involved, it’s important that your security needs are taken care of. How safe is the payroll software you are using? Are staff taking the proper measures? Is your server or network secure? Even supervising staff for abuses and unethical practices can be a concern. Payroll companies can eliminate such issues and provide you with the security your business needs.
Peace of mind
Finally, the peace of mind that comes with unloading the burden of complex payroll services will be well and truly welcome. No longer will you have to deal with the hassle and worry of processing payroll. Your managed payroll provider will take care of all of the heavy lifting, with your business just providing the basic information.
If you are starting to see the benefits that outsourcing payroll might have for your business, make sure to get in touch with us here at Phase 3 – the independent payroll consultants. We would love to discuss how we can help.
For more advice and tips on all things HR Technology, make sure to head to the Phase 3 insights page.