What are the benefits of outsourcing your payroll?
Outsourcing your payroll may have crossed your mind at some point while running your business, but doubts may have taken your thoughts off track. Will costs increase? How much work is involved in handing it over? Will it be time-consuming? Can I trust another company to handle our confidential and sensitive information?
We can answer all these questions for you and below are key points as to why outsourcing your payroll to us at Baldwins could be massive benefit to your business:
Reduce your direct costs
Direct costs of processing payroll could be greatly reduced by outsourcing your payroll to us. Large businesses are more likely to maintain a payroll department within the business. But, SMEs may find that processing payroll in-house is a money burner.
Just think of the time and costs involved for just some of the payroll tasks:
- Calculating and checking payroll for all staff in each period.
- Generation of required payroll reports.
- Processing of auto-enrolment each period.
- Calculation of PAYE.
There is the potential for significant cost benefits when you outsource your payroll to us. These can include:
- No costs for capital expenditure, such as payroll software, payroll stationary, professional payroll support (when required).
- No costs for on-going training. There are changes every year that you need to know and understand to maintain compliance with the latest legislative requirements.
- Time is money. A non-expert in payroll will take more time to process payroll for a business than a qualified and experienced payroll executive. You may also be more likely to incur penalties for late submissions and there is more chance for errors.
Payroll mistakes can be stressful and time-consuming to correct. By outsourcing your payroll to us as professionally-trained and experienced payroll provider errors are far less likely to take place. You pay for our expertise, up-to-date knowledge and finelytuned checking procedures we have in place.
- 2016 research by a top 20 accountancy firm showed that payroll errors cost UK companies more than £700m over the course of just one financial year. We can also help you to deal with any HM Revenue & Customs’ enquiries and ensure you do not fall foul of any rules or miss any filing deadlines.
Peace of mind is a huge benefit. No stress, no hassles, no headaches. Have peace of mind that your payroll is being run by our experienced professionals, who are focused on ensuring that your payroll is run correctly, efficiently and lawfully, so that you are left focusing on building your business.
You may think that transferring your payroll to us as a new payroll provider will be a lot of hassle and time-consuming. But this is not the case. Of course, initially we will need to know a little information about your business and employees, but as professionals we will know exactly what to ask for and only ask for the information required to run the payroll scheme accurately.
In most cases data can be transferred on a CSV file which is extracted from your software and exported into our software. In doing this there is no data entry or human errors when the payroll is being set up. We also undertake a health check on the payroll when we take it over to ensure that it is setup correctly in accordance with the relevant legislation and your contracts of employment.
Auto-enrolment – avoid serious penalties
Over the last few years, in the UK, we have been in the middle of the biggest change in retirement saving rules for many years, but some employers are still not aware of the importance of setting up workplace pensions in their business.
Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is called ‘automatic enrolment’. If you employ at least one person you are an employer and you have certain legal duties.
There are serious penalties for noncompliance. As your professional payroll provider we can ensure your Workplace Pension Scheme is set up correctly to avoid such penalties. We will administer your schemes with the help and partnership of some of the UK’s largest pension providers, to ensure you remain compliant and get access to the best tools.
There are many benefits for outsourcing your payroll. Speak to a member of our team to find out how we can help your business.