Benefits of Payroll Outsourcing

Outsourcing your payroll to a third party provides a number of benefits to all kinds of businesses. Outsourcing puts your payroll in the hands of the experts, allowing you to focus better on your business, while taking advantage of technology and expertise you may not be able to afford in-house.

Payroll is one of those processes that is essential, but not critical to sales and business growth. This is why payroll can feel like a drain on work hours and resources – resources that could better spent in making money. Payroll is complex and payruns need to be made on a regular basis, so this function doesn’t just go away once it’s done. By outsourcing your payroll, you can alleviate those burdens and channel more of your time, energy and resources into your core business functions.

The cost savings of payroll outsourcing are proving highly beneficial. In the current economic climate, businesses are looking for more ways to keep costs down, improve their efficiency, and gain a competitive advantage.

Outsourcing your payroll also gives you access to payroll knowledge and processes that you don’t have internally. This means that you can rest assured that your payroll is securely and accurately taken care of every month. So as well as saving money on setting up payroll internally, you avoid costly payroll errors too.

In recent years, the Auto Enrolment Pension Scheme and Inland Revenue’s e-filing rules and requirements have piled on the pressure for SMEs to ensure the correct processing of their payroll functions. By outsourcing these administrative tasks, they can free up valuable time for employees to concentrate on primary business objectives.

By outsourcing your payroll, your business can dedicate more time and money to the more important functions whilst reducing costs in the long-term.

Benefits of Outsourcing Your Payroll

No matter the size of your business, outsourcing can help:

  • Get time back
  • Save costs
  • Ensure security & compliance
  • Get accurate payroll on time, every time

Why Outsource Your Payroll?

The benefits of outsourcing a business’s payroll function vary from one company to another, however there are key advantages that are common across all businesses.

Payroll Accuracy & Guaranteed Compliance

Payroll errors are far more commonplace than you might think. Processing the average payroll for one person requires 14 pieces of personal data. If any one of them is wrong, you have a payroll error.

Payroll errors don’t just frustrate your staff, but can cost you money. Late or incorrect submission of employee tax can lead to fines from the government.

You also need to consider changes to reporting obligations and legislative compliance. Small businesses in particular can find it challenging keeping on top of the frequent, and often complicated changes to tax codes and legislation. Staying updated involves being aware that changes have happened and being able to implement new processes.

By outsourcing your payroll to a third party expert, you take away all that hassle. A professional payroll company employs payroll experts and uses specialised technology to ensure accurate payroll that’s processed on time, every time. They also are the first to know of tax code and legislative changes that affect payroll and are adept at maintaining compliant payroll.

Security

There are security risks involved when managing confidential payroll data in-house. By outsourcing your payroll functions, you can ensure your data will be protected by state of the art systems. At FMP Global, we are ISO accredited and GDPR compliant.

Get Back Time

Outsourcing your payroll gives your workforce more time to focus on doing what your business does best. 30% of small business spend over six hours each month on payroll processing, time that can be better spent elsewhere.

For large businesses, handling international payroll and processing the pay of hundreds of employees requires departments of people dedicated to payroll. Outsourcing your payroll gives you back that time and enables you to spend more time making money and less time paying money.

Cost Savings

Depending on your business and its size, outsourcing your payroll could generate considerable cost savings in the long-term. Outsourcing allows you to access efficient payroll services without having to employ a dedicated person or team internally.

You save on people and infrastructure. For new businesses, this reduces the upfront cost of starting up, while for established businesses, it means more money for shareholders and key stakeholders in your enterprise. Many companies find that overall, outsourcing payroll results in a cost saving rather than a costly outlay.

Handling payroll is a time consuming task and late filing of forms or errors and omissions can all lead to expensive fines. New legislation can change what is required by a company, and it doesn’t take long for penalties to add up, wasting company resources and leading to extra administration and stress.

Risks of Payroll Outsourcing

Outsourcing payroll involves risk only if you work with the wrong company. In our experience, payroll bureaux introduce errors when they don’t take the time to fully understand the complexities of your business. It’s for this reason that our tailored approach to outsourced payroll is absolutely fundamental to our way of working.

We are also proud to be a HMRC and BACs approved bureau, with a highly professional team dedicated to ensuring your payroll is legislatively compliant. Our payroll managers collectively have over eight decades of experience, and carrying out frequent checks is a key priority.