There are many advantages to outsourcing your payroll requirements when you run a small or medium sized business. If you have a large business then you can afford to run a payroll department: indeed, if you don’t have such a department within a large business then you still need to outsource it because the whole thing becomes so complex.
However, in a smaller business you cannot afford a payroll department, and indeed there is no justification for having one. What tends to happen is that when an entrepreneur starts a small business, he or she will handle payroll him or herself.
As the business expands it comes to a point where the business owner is spending far too much time on payroll, which is nothing other than a cost, and so hands the job over to an employee to do on perhaps one or two days a week. The business is not large enough to take on someone just to handle the payroll.
But of course, the employee who is chosen to undertake the work will have almost no knowledge of what needs to be done, and so will require training. The business will also now need to invest in software to run the payroll and that is another expense.
Probably the biggest issue with having an employee working on payroll part-time is that it is almost certain that errors will start to creep in. Now it is an unfortunate fact that HMRC does not like errors, especially when they result in tax being underpaid, and that leads to penalties which can start to mount up considerably.
Not only can there be errors, but there is another big consideration, and that is what happens if the employee who is doing the payroll goes sick three days before pay day? What happens if that employee decides to quit? Then you have to hand the whole thing over to someone else, and you are back to square one because they will need training. This is the problem with payroll: it can become a never-ending nightmare.
Another issue is that some types of employment can result in complicated payroll structures. Then you may also employ salesmen who earn a commission, and that means that their pay cheque is going to be different every month.
Another Consideration Is cost
Furthermore, there is another consideration and that is one of cost. When you take into account the software that you will need, the amount of hours that an employee will spend on payroll, the software, printers, printing payslips and writing out cheques, or making direct payments to employees’ bank accounts, creating tax documents, and so on, the overheads can be enormous. Added to that, the employee in charge of payroll could well be putto much more profitable use elsewhere.
By contrast, when you outsource your payroll to a UK payroll services business, you will find that you can save a lot of money as well as a lot of time. At Pay Check, we agree a fixed fee with you for carrying out all your payroll work, and it will contain no hidden surprises. Your payroll gets done on time, and most importantly without errors creeping in. This is because our UK payroll services are run by specialists who understand the tax rules and regulations and keep fully up to date with them.
Our team is also skilled at running all the software that we use and producing your payslips. We can also pay all your employees by BACS. Using our services gets rid of all the headaches associated with payroll for a small business, and keeps you compliant with HMRC, so you don’t get hit with penalties either.