If you’re an employer, even if you only have one or two employees, dealing with payroll is likely to be a vital part of your responsibilities towards those individuals.
Dealing with payroll can be a time-consuming process, there’s no doubt about it, but hiring an in-house payroll manager can also cost you in both time and money, and many businesses consider outsourcing their payroll.
What are the potential benefits of outsourcing payroll?
Though it may seem contrary to logic, in some cases outsourcing your payroll could save your company money. Employing a qualified and experienced person in-house to deal with your payroll requirements can be costly, as well as the resources and software required, often small costs that can quickly add up.
Outsourcing payroll responsibilities, on the other hand, could mean that you only have a single if regular payment to consider for the service that you receive. Of course, outsourcing payroll will not be right for everyone, and a careful cost analysis and comparison can help you decide whether it is the right option for you.
In addition to potentially reducing costs, outsourcing your company payroll could also give you peace of mind that it is being dealt with by those who have experience in the area, and if mistakes or time-delays do happen you may be able to seek financial recompense for any difficulties caused as a result.
Before you decide whether or not outsourcing your payroll is the right option for you it can be important to establish with a potential provider that they have experience in working with similarly sized businesses.
Many providers will offer a flexible service with a package tailored to meet the needs of your company size and priced accordingly. Some providers will offer a fixed fee service so that you know exactly what you will have to pay and when you can expect to pay it.
A carefully composed and reviewed contract can establish exactly what you and your provider expect from the relationship before proceeding.
Outsourced payroll services are typically provided by accountants. To ensure that the accountants that you outsource your payroll too are fully qualified you may want to check that the accounting firm that you pick is registered with the Institute of Chartered Accountants.
Outsourcing payroll might not be the right option for every business, but it may be worth considering all your options when it comes to fulfilling such an important obligation.