Payroll management is one serious aspect of running a business. You can’t just do it in a slapdash manner. The mistakes you make will not only lead to complaints from your staff or employees. Errors will also affect your accuracy and compliance with government requirements. If you want to have your own payroll management department or section, it has to be complete and staffed by someone competent.
There are times, however, when you can’t afford to run your own payroll management department. There are instances when hiring a payroll officer is going to be too much of an operating expense burden. These are the reasons why managed payroll solutions from third parties exist.
What to Expect
Providers of payroll services offer solutions or packages that cover a number of functions. The typical fully managed solutions usually include the following:
- Payroll Administration – This includes the setting up of the payroll accounts, completion of payslips and related reports, the making of payments to employees, processing of leaves, and printing out of P45’s. In most cases, the reports and other pertinent documents are sent online preferably in an encrypted and password-protected file.
- Handling of Statutory Payments. Providers of payroll solutions are expected to be well-versed in all aspects of pertinent government regulations, legislations, and requirements. If there are ongoing (as well as upcoming) payroll related obligations, these can be handled by the payroll service provider.
- P11d’s. A payroll management company preferably has to have the knowledge of handling P11d’s should employees require them.
- Payroll Health Checks. There are payroll companies that can also offer payroll management checks for those who already have their own payroll departments. They can assess system efficiency and provide recommendations on how to improve a system that is already in place.
- Help and Support. A payroll services company should be able to extend help and support for the services they provide. If there’s confusion on their reports, for instance, they should promptly address them. Not all payroll companies can be expected to represent their clients in payroll-related litigations but they should be able to extend assistance pertinent to the services they have provided.
Outsourced Payroll Advantages
By having another company handle your payroll services, you can enjoy a number of advantages. The most noteworthy among them are as follows:
- Cost Efficiency. Outsourcing payroll functions can mean lower operating expenses especially for small companies. It also eliminates the need to set up a new workstation and a place for storing files.
- Accuracy. With experts handling your payroll, you can expect a better level of accuracy and more organized reports.
- Up-to-date Expertise. Companies that provide payroll services are expected to be updated in all aspects of payroll management, including the legalities and compliance requirements. If you want to avoid legal problems related to payroll, it’s better to hire experts to do payroll management for you.
Payroll functions are best handled by experts. If you want to minimize operating costs while getting the assurance that you payroll reports and records are accurate and compliant, hiring payroll experts is certainly a good choice.