What are the advantages of outsourced payroll?

In recent years, organisations have been investing in software solutions to bring their payroll back in-house. Now, though, with the introduction of RTI and auto-enrolment, many payroll departments have been forced to consider a change of payroll software or solutions; the most obvious being outsourced payroll. Amongst other things, the reasons for this often include the non-compliance of their current system with the new legislation.

READ MORE: When to outsource payroll: 6 signs your business has outgrown in-house payroll

What are the benefits of outsourced payroll? Everything you need to know

IS OUTSOURCED PAYROLL COST EFFECTIVE?

There are benefits to outsourcing your payroll; one of the main ones being cost.

It has been argued that in-house payroll is more cost-efficient than outsourcing, but consideration needs to be taken into account, for example, the cost of hiring and training staff in the varying and sometimes complicated areas handled by payroll (like sickness, maternity leave, auto-enrolment and holidays), the cost of software and the pressure of ever-changing demands on employers. Using a bureau also takes away the risk of being non-compliant and incurring HMRC penalties.

Access Payroll Experts and Stay Compliant

Another advantage of this approach is that it removes the need for you to engage that expertise in-house.

Rather than having one or two employees with limited knowledge, the payroll bureau will have access to a wealth of knowledge and experience.  A good provider will be able to provide you with tailored reports, for example, helping you run your business more efficiently and give you important decision-making information. In addition, several companies may also offer services around all your employment-related matters (such as corporate benefits or employer and expatriate tax).  Most importantly though, even if these folks are among the most efficient and knowledgeable you’ve ever met, if they’re not approachable and accessible it’s not going to work; so when you’re looking around, be sure to run them through the “personable and friendly” test too!

Save Time with Faster, More Accurate Payroll Processing

One other advantage of outsourced payroll is speed. As payroll providers are specialists, they can process even the most complex payrolls promptly and without error, resulting in your payroll being turned around swiftly and efficiently.

Why Outsourcing Payroll Makes Sense for Growing Businesses

While we’re not saying it’s the best approach for every company, it’s clear that outsourced payroll can present many advantages for a business. Not only can it be cost-effective, but it also allows you to concentrate on the business of… well, your business! Not only this, it provides peace of mind for an organisation. Having your payroll processed by appropriately qualified people with the most up-to-date knowledge and using software that moves with changes in legislation, and covers even the most complicated areas of payroll means mistakes are avoided, and employees get the best service possible.

How AAB can help with outsourced payroll

Our Outsourced Payroll Services can take care of your payroll from start to finish. We’ll keep your payroll accurate, compliant and running smoothly, while staying on top of the latest legislative changes.

Whether you’re considering outsourcing for the first time or looking for a more reliable payroll partner, we can provide a service tailored to your needs. You’ll have access to experienced professionals who are approachable, responsive and ready to help when you need them.

If you require assistance or would like to discuss outsourced payroll in greater detail, please don’t hesitate to get in touch with David Purse, a member of our Outsourced Payroll team, or your usual AAB contact.