Archimedia Accounts are trusted accountants in Nottingham who provide payroll outsourcing services. This article is to outline if/why businesses should look at outsourcing their payroll and the benefits of doing so.
Payroll outsourcing can be a huge time saver for small business owners. Most small business owners regard payroll as a time consuming and painful task but do not have a budget big enough to employ staff to take on this task. This is why they look to outsource their payroll. Many business owners want to spend time on aspects of the business that will increase their bottom line and not on ad hoc tasks which divert them from achieving their business goals. In this article we will cover some key points about payroll outsourcing and why it is chosen as the preferred method for many small business owners.
What is payroll outsourcing?
Payroll outsourcing is simply using an external payroll specialist to take on the task performing all your payroll related duties for you. It means that you do not have to hire staff, train them, and also purchase software needed to perform payroll duties. It is ideal for those businesses that do not have the resources to have payroll employees and where the owner does not have the time or knowledge of performing these tasks themselves. Choosing the correct payroll outsourcing partner is vital. Some key questions you may want to ask when choosing your payroll partner are as follows:
1: Is there open communication available via telephone if questions are needing to be answered? Some payroll outsource businesses only operate via email which can be difficult to manage when you have urgent questions that need answering.
2: have they got any experience in your sector? It may not be imperative but it always helps when working with partners who understand your business and why it runs in the fashion it does.
3: Lastly you want to see some case studies or reviews of the current clients to judge the quality of work. When it comes to paying your staff, you want the process to be as smooth as possible, the last thing you want is disgruntled staff not getting paid and not being able to communicate with your payroll outsource partner to see what has happened. Remember also, buy cheap buy twice.
How does payroll outsourcing work?
A payroll outsourcing company like Archimedia Accounts is there to take the strain and pressure of having to worry about all things payroll. Below is step by step how the process works:
1: First we will onboard you onto our payroll specialist software by taking your basic company details and employees’ names and details. Some information would include hire date and pay rate, holiday entitlement, and sick leave entitlement.
2: Then we will be set up to start requesting any time cards or timesheet information. We will then calculate what that staff member is due for the coming payment based on the information we collected above and also calculate tax deductions, national insurance deductions and any other deductions such as pension, health insurance benefits, etc
3: We will then confirm hours, calculate paid and unpaid hours, and calculate the employee’s gross pay. We make sure we are extra diligent in all of these tasks as we understand the unnecessary pain and frustration of getting this step wrong.
4: We then process any deductions such as all tax-related deductions and company benefit related deductions.
5: At this stage we will email all employees payslips to you or to them directly depending on what you would like us to do. If you like we can also set up individual login for each employee that they can use to download their current and any historic payslips, saving you the time to send them old ones if they request them.
6: Make sure all payroll related tax owed to HMRC is paid and all payroll related tax is up to date.
Should you outsource payroll?
Using a payroll outsourcing service has some big benefits. If you are not a large business with the funds to run payroll teams then payroll outsourcing could be perfect for you. Below are some of the key benefits of outsourcing payroll:
1: Speed – payroll outsource specialists are trained to perform payroll with exceptional accuracy and speed. When you have staff members within your business trying to perform payroll because they are not trained mistakes can happen and the whole process can be much slower which also costs you money. Speed, efficiency, and accuracy are vital which the right payroll outsource service can offer.
2: Cost – Using untrained staff or hiring a payroll staff member can be costly. A lot of times business owners do not factor in the cost of payroll software, paper, ink, training, etc when calculating whether using a payroll outsourcing service is a worthwhile investment. When all things are considered and you combine the above expenses with the time you or your staff spend on payroll, it normally totals up to more than what you would pay to outsource.
3 – Minimises risk of fines and penalties – Working with a payroll outsourcing specialist will minimise the risk of fines and penalties because you will be working with trained experts who know what to look out for and will advise you if anything is not quite right. It allows you to rest assured that your payroll is in good hands and you will not have to incur charges unnecessarily.
4: Time – This is a big one, it gives you your time back to focus on the areas of the business you want to focus on such as business growth, etc. If as a business owner you or your staff are getting involved in payroll, it is pulling you away from your main focus. Time is money and so using a payroll outsourcing company gives you all those hours back to focus on what’s most important to your business.
5: Security – Monitoring staff hours and ensuring that employees are getting paid for the hours they actually should be getting paid for can be a laborious and tiresome task. Having the security and peace of mind knowing that you have a specialist team focusing on making sure everything is as it should be is a weight off many business owners’ shoulders. You can rest assured knowing that all this is being taken care of and you do not have to worry about paying extra hours that have not been worked.
How much does payroll outsourcing cost in the UK?
Payroll outsourcing services cost on average between £2 – £6 per employee, with a minimum bracket of around £30 per month. It is usually calculated based on individual business circumstances, size, and requirements. Archimedia Accounts offer a very affordable payroll outsourcing service which will be calculated after assessing the individual business circumstances.
Using a payroll outsourcing service can have many benefits for a business owner. For a reasonably low cost it is a worthwhile investment for all business owners who simply don’t have the resources or time to do it themselves or hire staff to do it. It is important to choose the correct payroll outsourcing partner for your business so that you work with a payroll specialist who truly understands your business and your individual needs. This is where Archimedia Accounts can help. We do not see our payroll outsource service as just a mundane task, we take the opportunity to get to know our client’s businesses, what they need and what pain points they have and then we aim to eliminate that pain by providing a service that goes beyond what was expected. We aim to provide a cost-effective, efficient payroll service that keeps your payroll running smoothly and effortlessly giving you the time back to focus on the key areas of your business. Get in touch to discuss how we can help with your payroll.