Managing payroll can be one of the most complex and time consuming functions within a business. Ensuring employees are paid accurately and on time, handling tax compliance, and keeping up with ever changing payroll regulations require significant expertise. Many organisations choose to outsource some aspects of their payroll, but a fully managed payroll service takes things a step further.
Rather than just outsourcing certain tasks, a fully managed payroll service means handing over the entire payroll function to an expert third-party provider. This allows businesses to focus on their core operations while ensuring payroll is handled confidently, accurately, and in full compliance with HMRC regulations.
A fully managed payroll service covers every aspect of payroll processing, from employee payments to compliance and reporting. Here’s what’s typically included:
The service provider takes full responsibility for calculating employee wages, factoring in overtime, bonuses, deductions, and statutory payments such as sick pay or maternity leave. Payments are then processed directly to employees, ensuring everyone is paid correctly and on time.
Payroll legislation in the UK is constantly evolving, with new regulations such as IR35, National Minimum Wage adjustments, and the upcoming changes to P11D – all requiring ongoing attention. A fully managed payroll provider stays up to date with these changes, ensuring compliance with PAYE, National Insurance, pensions, and other legal obligations.
HMRC requires employers to submit Real-Time Information (RTI) every time they run payroll. A fully managed provider ensures these submissions are completed accurately and on schedule, avoiding penalties for late or incorrect reporting.
Managing workplace pensions can be a headache, especially with auto-enrolment requirements. A fully managed payroll service takes care of pension contributions, ensuring employees are enrolled correctly and deductions are made in line with pension regulations.
Employees need easy access to their payslips, tax documents, and payroll details. Many fully managed payroll providers offer digital self-service portals where employees can view their payslips, request changes, and access important documents without having to go through HR.
A payroll provider doesn’t just process payments, they also handle employee payroll queries, tax code issues, and other payroll related concerns, reducing the administrative burden on HR and finance teams.
At the end of the financial year, businesses must submit P60s, P11Ds, and other reports to HMRC. A fully managed payroll provider ensures these reports are accurate, compliant, and submitted on time.
Some businesses choose partially managed payroll, where they retain certain responsibilities while outsourcing specific tasks such as payslip production or tax calculations. This still requires in-house payroll knowledge and management.
With fully managed payroll, however, the entire function is outsourced, removing the need for in-house payroll expertise. The provider acts as an extension of the business, ensuring payroll runs seamlessly without internal involvement.
This service is ideal for:
At Phase 3, we specialise in taking the stress out of payroll with our fully managed payroll service. Our team of payroll experts ensures your employees are paid accurately and on time, with full compliance and minimal hassle for your business.
By choosing us, you gain:
If you’re looking for a hassle-free payroll solution, Phase 3’s fully managed payroll service ensures your payroll is handled with expertise and efficiency.
Assad founded Phase 3 in 2004 and is responsible for the strategy, growth and finances of the business.
