The benefits of payroll outsourcing
The advantages for organisations outsourcing payroll are numerous and span across efficiency, productivity and confidence that your payroll is in the right hands. Many businesses find that outsourcing takes the risk out of payroll. Here are some of the main benefits of switching to a managed payroll service:
Avoid HMRC penalties
HMRC paperwork and returns require careful attention, as any mistakes or late submissions could result in a penalty. HMRC will charge you a penalty if you submit any paperwork that contains errors, or misrepresents your tax liability, equally if a HMRC assessment understates your tax liability, you can also face a penalty if you don't inform them.
Financial compliance is one of the toughest areas to manage, especially if you’re running global payroll. Employment legislation and HMRC requirements are always changing and it’s a constant battle to keep up to date. Working with a managed service specialist means you, the customer, can rely on the provider’s ISAE3402 financial compliance controls, plus investment in on-going payroll training and career development.
Increased flexibility & scalability
Outsourcing offers a variable payroll cost base which is much more elastic with a greater ROI and is scalable as your business grows. You may consider your business model to very predictable with a fixed workload processing cycle, but in light of recent disruption to the global economy and working arrangements, we should all be expecting the unexpected. Is your current payroll agile enough to cope with drastic change overnight?
Reduced cost of ownership
Outsourcing is an investment and can be financially justified to stakeholders. When you consider the direct costs a reliable payroll provider can absorb such as infrastructure and data security, plus the indirect costs like compliance and Payroll/HR expertise, you can reduce your Total Cost of Ownership by at least 20%.
Managed payroll solutions are designed to save time, which also saves money. A solution from an expert supplier will accurately inform financial decision-making across the business thanks to real-time calculations and powerful analytics.
Having an managed payroll solution can enhance security. The costs and resources that are involved are sometimes difficult for organisations to manage internally to ensure absolute security and accuracy. At the heart of the solution of a reliable provider is the confidentiality, storage and protection of customer data in compliance with legislation such as GDPR.
What makes a quality payroll provider stand out from others? Look for the ISO27001 certification, an international standard and a key indicator that the payroll provider takes security of information and processing your data seriously.
Peace of mind
Ultimately, managed service gives you peace of mind that your payroll and people are being looked after. With changing work patterns and pay frequencies on the horizon, you should feel confident to offer your people personalised, flexible packages that payroll can keep up with.