Why outsourcing your payroll is a good idea
I was recently asked why a company should outsource payroll when it can be done in-house. This got me thinking and I started to make a list. A list that probably could have gone on into the 20's and 30's but these are the 3 most important reasons that I think outsourcing payroll is your best option.
1. Employee Morale
Getting an employee's pay wrong is a disaster for morale. With the cost of living on the rise, many employees cannot afford for mistakes with their pay, yet many employers often get it wrong especially where overtime is concerned. And if it takes a pay cycle for correction, some can be waiting a month for the shortfall to be made up. Get it wrong regularly and employee morale will be damaged.
Decent payroll software can be very expensive for a stand alone employer and as your business grows and your staffing levels increase so do the costs. All payroll providers will bear the cost of the software licence and buying in bulk for multiple employers allows them to get the best deals. All payroll software will frequently updated with the latest regulations such as National Minimum Wage increases or the upcoming changes to NI rates. Bureau payroll software is GDPR compliant, often cloud based and provides online security as well as often offering additional features such as annual leave management or other HR options.
Many people think that keeping payroll in house is much cheaper than outsourcing but when you consider the true in-house costs - staff hours, regular staff training and upskilling, software and IT requirements, pension regulation and compliance and of course the potential costs of getting it wrong.... HMRC fines, unpaid tax/NI then it can certainly be worth taking all the stress away by outsourcing.
Greenscombe Accounting can provide a fully outsourced Payroll option, whether your business has one employee or several hundred. Contact us today to see how we can help you.