Managed Payroll Services – Questions and Answers
If you’re looking to outsource your payroll, it’s very likely you’ll have a number of questions you want answered – particularly about what it involves, the benefits it can have for your business, and how IRIS FMP Payroll (formerly Bond Payroll) can deliver a tailored service to meet your specific payroll requirements.
To give you a better idea of what a managed payroll service is and how we can take care of all your payroll needs, read our list of payroll FAQs below.
1. What is a managed payroll service?
A managed payroll service is a payroll service which is outsourced to a third party company, instead of being carried out in-house.
A fully managed payroll service includes every aspect of setting up and administering a client’s payroll function. The only action the client needs to do is to feed in employee data weekly or monthly as required – the payroll provider does everything else. It completely frees up your staff to concentrate on more important activities such as running and growing the business.
At IRIS FMP we also offer a part-managed payroll service, which allows clients to continue running their payroll in-house, whilst outsourcing the majority of the associated time consuming activities. Businesses can benefit from the latest technology and the expertise of payroll professionals, but have the opportunity to maintain a degree of control and input.
2. What does a managed payroll service include?
IRIS FMP provides a managed service which includes the following key features.
- Requirements capture – We work with you to define your requirements and understand what your business needs from a payroll service
- System set up – We build a system for your business using HMRC approved IRIS FMP Payrite or Amity software and is kept continually up to date with all relevant legislation changes
- System test – We run the new system in parallel with your existing system to ensure it is correct. Then we switch over to the new system, ensuring correct takeover of data to the new system
- Data entry – We take receipt of data from you and the security of that data very seriously. We prefer to receive your data by secure data transfer. However we will also receive your data by email, fax or phone. Data would include hours worked, bonuses and other details which affect wage calculation. We carry out data entry into the system.
- Calculations – We perform all calculations necessary to produce a final wage slip including: tax and National Insurance, PAYE, GAYE, pensions, SMP, OMP, SAP, SSP, SPP and OSP. The calculations are validated and audited
- Dedicated Payroll Manager – You have a named professional who is familiar with your company and your account, who you can speak to at any time
- Payslips – We produce a security sealed payslip for each employee/pensioner
- Payments – We arrange BACS payments of wages and pensions direct into employee bank accounts
- Additional documents – We produce necessary documents for individual personnel and HMRC as required including P45’s, P46’s, P35’s, P11’s, P14’s, and P60’s
- Reports – We provide regular reports (e.g. weekly, monthly) as required. We also provide bespoke accounting reports if these are needed. Instant reporting is also available
- General Ledger interface – This allows you to interface with your existing accounting software, currently compatible with 90 different finance packages
- End of Year – We calculate and compile all end of year figures and submit them to the HMRC on your behalf
- HMRC compliant – We use fully HMRC approved software
3. What are the benefits of using IRIS FMP’ managed payroll service?
The benefits of using our managed payroll service fall into four main categories:
- Cost Savings – No need to employ dedicated staff to administer your payroll and no need to pay ongoing software licensing costs for payroll software
- Time Savings – Your personnel are freed up to work on the core business activities instead of running or overseeing an in-house payroll function
- Security and Compliance – You never have to worry about staying up to date with changes in taxation or payroll legislation, this is taken care of automatically
- Visibility and Control – You retain complete visibility and control via reports and access to your dedicated payroll manager.
For the majority of businesses – particularly SMEs – what these benefits bring is greater room and possibility for long-term growth. Outsourcing payroll functions that are time consuming and costly immediately frees up resources and capital to focus on core business objectives and delivering maximum value. Contact us today to find out how our dedicated payroll solutions can help you achieve business growth.
4. Do I Need A Managed Payroll Service?
There are a number of reasons why business owners choose to outsource their payroll functions. For many, overly complex payroll functions and ever-changing HMRC regulations, can be difficult to keep on top of every month. For others, it’s because they simply do not have the resources to meet the demands of payroll processing.
Outsourced payroll solutions can bring a number of strategic advantages to your business and greatly improve financial savings. If you’re still unsure as to whether you need a managed payroll service, take our Payroll Quiz to find out exactly how well your payroll is run – and whether you could benefit from our payroll expertise at IRIS FMP.
5. Is a managed payroll service suitable for all businesses?
Yes. It is suitable for kinds of businesses – large and small – as well as charities and other non-profit organisations. At IRIS FMP we work with a range of businesses to provide managed payroll solutions. Find out more here.
Managed Payroll for Large Businesses
Large companies with an existing in-house payroll function are likely to see the biggest immediate cost benefits, as they will no longer need to employ dedicated payroll staff or pay for payroll software licensing costs. This will release capital for further investment and more revenue-boosting activities. Risk reduction, better project management, improved processes and flexibility are further advantages that will be immediately apparent to large businesses that outsource their payroll.
Managed Payroll for SMEs
Small companies such as start-ups often begin by doing all business functions including payroll, themselves. However this requires time and some expertise, which is a big drain on resources if there are only a few people working in the business.
Often this function grows organically as the company becomes medium-sized. Moving to a managed payroll service frees up key personnel to grow the business. It also gives small and medium businesses the benefit of a fixed cost for their payroll which is easy to budget for.
Managed Payroll for Non-Profit Organisations
Non-profit organisations, such as charities, often depend on volunteers to run the organisation. It is therefore more difficult to expect them to have the background or necessary expertise to run a payroll, which can often be more complex than for a company. Using IRIS FMP means that non-profit businesses are automatically up to date with all necessary tax and pay legislation and are fully HMRC compliant. Read more on Not For Profit (NFP) and Charity Payroll.
Managed Payroll for Recruitment Companies
Recruitment companies have very specific payroll needs. They have large numbers of people that need to be paid for varying lengths of time, as well as those working for third party companies. Most recruitment companies are fairly small, so trying to keep track of this type of complexity makes using a managed payroll service essential. Find out more on IRIS FMP’s Recruitment Payroll and Billing services.
6. How much does the IRIS FMP managed payroll service cost?
There is an initial set up fee which depends on the complexity of the payroll required. After that, there is a fixed charge per payslip. All other costs are included in the payslip fee. The overall cost of your payroll will depend on the exact service we deliver and your specific payroll needs. Contact us today for further information.
7. What is the process of moving over to IRIS FMP’ Managed Payroll Service?
Whether you currently have an in-house function or are using a third party supplier, our first step is always to assess your requirements and understand what your organisation really needs from a payroll service. We take into account all the different elements that go to make up an employee’s pay (e.g. basic wage, overtime, bonuses, commissions, GAYE or other schemes, payment of expenses and so on).
If you are already using a third party supplier, we take special care to ensure that any issues that existed with the previous supplier are addressed and corrected as part of the requirements capture process.
We then build a system based on these requirements using Payrite; a feature-rich software suite, which is populated with base data. The new system is run in parallel with your existing system to test it is correct and to iron out any anomalies.
Once you are happy that the new system is producing correct figures we switch over to the new system. If you are currently using an external payroll provider, a changeover point will need to be agreed and we will provide communication and support to help manage this process.
8. How is data supplied to IRIS FMP?
- Data is usually supplied via email or fax, or by phone if necessary.
- Data entry is carried out by ourselves.
- This means that you can continue to collect and collate pay data using whatever method you currently use, resulting in minimal disruption to existing company practices.
9. How Can I be sure my payroll Data is secure?
At IRIS FMP we prioritise client data protection by investing in the latest technology and highly advanced data security procedures to ensure your sensitive information is safe. Most significantly, we do not move any client data off shore and all data centres and servers that hold any payroll data are all located in the UK.
Contact Us to find out more about Payroll Data Security at IRIS FMP Payroll Services.
10. Do IRIS FMP offer any kind of guarantee?
As part of the initial set up phase, we draw up a service level agreement detailing the processes, activities and deliverables that have been agreed, including timescales, deadlines and other key performance indicators. This ensures the introduction of the new payroll system is properly project managed and allows all interested parties to track and monitor progress.
The service level agreement also states the levels of accuracy and timeliness you can expect from us, and what happens if these levels are not met. This agreement effectively forms your guarantee of service.