Outsourcing payroll is continuing to be a popular choice for organisations of all sizes and is gaining traction across the UK. In 2020, around 60% of UK businesses chose to outsource payroll, and that was before the pandemic!
For many, the tipping point is growth. As businesses grow, whether that is a sole trader taking on employees for the first time or larger businesses scaling their operations across multi-sites, the regulatory red tape becomes longer, and the task of managing payroll in-house quickly turns into a major commitment and expense.
So whether you are a small business or are steering a larger ship, here are six reasons why outsourcing your payroll could be a game-changer.
1. Save time and money – a win-win!
Imagine clawing back hours each month by outsourcing payroll duties to the pros while saving money. Outsourcing your payroll can do exactly that.
Managing payroll in-house typically requires dedicated staff, expense payroll and payment software, and ongoing training to stay updated with the latest legislation. These costs can stack up, especially for small to medium-sized businesses.
Outsourcing payroll allows you to reduce these expenses, paying only for what you need. Plus, it frees up your team to focus on core business needs and revenue streams instead of getting lost in the complex world that is payroll.
2. Expertise and compliance – no more guesswork
Payroll isn’t just about processing payments; it’s about staying compliant with an ever-evolving set of regulations that can change at the drop of a hat.
From PAYE and National Insurance contributions to pension auto-enrolment and National Minimum Wage requirements, payroll legislation is complex and constantly changing. A simple mistake can land you in hot water with heavy fines, penalties, and sleepless nights, which no one wants.
By outsourcing your payroll to a quality provider that cares, you’ve got experts who live and breathe payroll compliance and processes. Payroll professionals are detail people and love to “do the right thing”, which means every ‘i’ is dotted and every ‘t’ is crossed to create a correct payroll for your staff.
3. Enhanced security and confidentiality – Fort Knox for your data
Payroll involves handling some of the most sensitive data out there… employee addresses, salaries, bank details, the works. Protecting this information isn’t just important – it’s mission-critical.
Outsourcing to a reputable payroll provider means your data is guarded by top-tier security systems and IT geeks who care about your data.
4. Scalability and flexibility – ready for anything
As your business evolves, so do your payroll demands. Whether you’re adding new employees, expanding into different sectors, needing better reporting, or introducing varied pay structures, managing payroll can quickly become a logistical nightmare if in the wrong hands.
The right payroll provider should have the flexibility to scale your payroll services as your business grows. And, unlike doing it yourself, there is no need to invest in additional staff or expensive system upgrades. Your payroll provider can tailor their services to fit your needs, letting you adapt no matter how your business evolves.
5. Improved accuracy and reduced risk – pain-free pay day
When it comes to payroll, accuracy is everything. A single mistake can lead to disgruntled employees or unexpected penalties, and nobody needs that drama.
By outsourcing to professionals, you can rest easy knowing every detail is handled with precision. Good payroll providers use advanced software and rigorous quality checks to ensure employees are paid correctly and on time every time. They also have well thought out contingency plans should they be required. This not only keeps your team happy but also slashes the risk of costly errors. Happy staff, happy life, right?
6. An extension of your team – your payroll BFFs
Outsourcing your payroll isn’t just about offloading a task; it’s about gaining a payroll partner. A good payroll provider doesn’t just tick boxes; they align with your business goals, adapt to your unique needs, and listen to you, the client. They should become an extension of your team, minus the office politics! All the perks of in-house expertise without the hassle.
A smarter payroll solution with Ascend
If this all sounds like the type of payroll solution you’ve been looking for, I’d love to have a chat. With decades of experience in the outsourced payroll business, I’ve pretty much seen it all and am happy to share my knowledge and experience.
