Outsourcing is key to smoothing your payroll process. This ensures everyone is paid exactly what they deserve at the right time.

Too often, HR professionals spend too much time processing payroll runs instead of focusing on strategy and other higher-value tasks.

Payroll can be a time-consuming process. Not only do you have to complete the required tasks, but you also need to comply with tax and legislative requirements.

Outsourcing payroll services have the advantage that you can focus your time on what is important: strategic business drivers that will grow your company’s culture and business.

Here are the top ten advantages your company can reap from outsourcing your Payroll.

01 Save time

Outsourced payroll costs can be a low way to increase company efficiency. Instead of spending hours each pay cycle processing payroll, which can be time-consuming and administratively difficult, HR teams can concentrate on more strategic goals, such as increasing employee engagement to increase organizational productivity.

02 Reduce costs

You can also save time and money by reducing your wage bill. As companies grow, outsourcing payroll can help them save money instead of investing in expanding their HR departments to manage growing payrolls. Your business may see savings by not having to manage payroll software or paperwork in the cloud.

03Minimise regulatory risks and compliance

Payroll regulations change at lightning speed, making compliance difficult and time-consuming. Four regulatory bodies in UK have developed rules for payroll processing. Each one issues notifications when the law changes. Your company must ensure that these changes are correctly translated into payroll formulas.

When updating payroll formulas, mistakes are easy, especially if they contain IF, AND OR logical functions. Payroll can be incorrectly calculated if the formula is not correct. This could lead to under- or overpayment of wages and tax. You may not realize an error occurred until you receive an expensive non-compliance penalty.

04Get local, specialized knowledge

Your company will benefit from a dedicated team of professionals familiar with UK labour laws. This allows your company to benefit from the team’s many years of payroll experience without dealing with complex protocols and cross-checking at multiple levels.

This is particularly beneficial for companies operating in multiple states or countries. An external partner will work with your company to ensure compliance in each area. It will also free up your HR department.

05Build payroll continuity

Many payroll systems require employees to be present on-site to process payroll. How will employees be paid if the unforeseeable happens? For example, a member of your payroll team can’t make it to work, or someone on your payroll approval team resigns. Payroll continuity is guaranteed by outsourcing payroll to an expert provider, so your employees get paid on time every time.

06Enhance data security protection

Payroll processing involves sensitive information such as employee personal data and details about compensation. Data security is essential. 

It can be difficult for a small company to provide adequate data security and protection. In-house teams must keep up with evolving cybersecurity threats. Payroll fraud is a serious problem for companies that are processing Payroll in-house. In-house payroll teams might not have the right protocols in place to back up data regularly.

07Reduce stress

Your company’s success depends on your ability to pay your employees accurately and on time. Payroll is a critical part of any HR department. There is no room to make mistakes. In-house payroll teams can find it difficult to manage Payroll effectively when trying to comply with local regulations and simultaneously manage the growing workforce.