When you run a small business that is growing, there are many advantages to outsourcing certain tasks. Outsourcing is effectively hiring a third party to undertake some jobs that would otherwise require you to take on more employees, or alternatively, assign those tasks to existing employees. It can be a very effective way of getting essential jobs done and saving money at the same time.
Let’s face it, there can be two major issues; firstly, you need certain tasks carried out. Secondly, you don’t have enough to take on a full-time employee. You might be able to take on someone part time, but if not, it is usually easy to outsource the job to a specialist. If you allocate a job to an existing employee, that means that the employee will not be able to devote so much time to their original tasks which could then leave you short-handed in that area. It can be a difficult balancing act.
On the other hand, if you choose to outsource the work to a third party, you should be able to find one that specialises in that particular area. This means that the work that you need carried out will be done faster and more effectively, in comparison to doing it in-house. As a result, you end up saving money short term and long term. So, in short, you get a better job done for less – and that has to be a good idea.
This is the reason why so many businesses today are using payroll outsourcing service in the UK. Payroll is an essential aspect of running a business (unless you are a sole trader with no employees) yet earns you nothing and is all cost. And that cost gets worse the more your business expands and the more employees you take on.
This is particularly the case where you have a range of employees undertaking different work at different pay rates. For example, you might have a secretary or two, an office clerk, a sales team that gets a basic salary and commissions (that vary from month to month). Then you have people who do some overtime so they get paid for that at a higher rate, and that will also vary according to how many hours overtime they have worked that month.
You might also have a sales manager who gets salary, commission, and bonuses for hitting targets. You might have IT staff who get paid varying rates of pay according to their particular job. Then you have staff members who have benefits that need to be taken into account. There are younger staff whose rates change as they have a birthday. There are staff holidays, sick pay – the list goes on and on. And that’s before we even get into the area of pension auto enrolment.
And of course, all this has to be calculated accurately and the appropriate rates of tax deducted, so you could end up with an avalanche of numbers to deal with. Furthermore, as a business owner you are responsible for getting it all right, even though it is so complex. The Inland Revenue doesn’t care about that: make a mistake and you could suffer penalties.
This is why so many businesses use our payroll outsourcing services in the UK at PayCheck. Payroll is what we do, so we have streamlined systems in place that can handle every possible combination of wages, salaries, commissions, bonuses, benefits, allowances, and more that occur in your business. We do this on time every time so that your employees get paid and all your returns to HMRC are correct.
With us, you get peace of mind, that allows you to carry on with running your business instead of being an unpaid clerk for HMRC!