Why should businesses consider outsourcing payroll?

Payroll is a process many businesses need to undertake. Regardless of the number of employees a company has, payroll demands time, training and attention to detail. Here, we discuss nine reasons why businesses should consider outsourcing payroll.

1. Save time

Processing payroll can be a time-consuming process. Not only must payroll processing be considered but also time for training. Many companies train an existing employee in payroll and add payroll duties to their responsibilities. However, by outsourcing payroll, these employees are able to concentrate on the rest of their job. In many cases this can be far a far more efficient method.

2. Reduce costs

Although outsourcing payroll will come at a cost, doing so can save companies money. For a company with a small number of staff, having a full-time payroll function is not sustainable or efficient. Not only do businesses need to consider the payroll staff salary, but there are also many other costs involved. These include printing, computer software, program maintenance, training and more. These costs can add up. Payroll costs can be budgeted for and controlled with an outsourced payroll company.

3. Avoid costly mistakes

Penalties and fines can occur when mistakes are made with payroll. Over time, if these mistakes continue to happen, it can build up to significant costs. Mistakes can have an adverse effect on employee trust. Employees who receive prompt and accurate salaries will trust the business. Employees who suffer due to mistakes with their salary are less likely to give one-hundred percent.

4. Benefit from a team of experts

One of the major benefits of outsourcing payroll is that businesses have access to support from a team of experts. Not only can they help with payroll, but they can also provide a range of other services. These include processing termination payments, reporting and benefits planning. They are also available if the business has any queries. Companies that offer payroll services allow small businesses to benefit from expertise and knowledge previously only available to large organisations. They will be able to provide a tailored service for an individual business.

5. Enhanced security

Cyber-security is a concern for businesses of all sizes. Processing payroll can be both complex and risky due to the sensitive and important information involved. In-house payroll software increases unnecessary risk. Maintaining data security takes precious time and energy. Payroll companies have expertise in dealing with sensitive data. This can be one less thing for business owners to worry about.

6. Provides peace of mind

An outsourced payroll system reduces stress. A company can become dependent on just one payroll-trained employee. Annual leave, sick leave or resignations can leave the business in a vulnerable position. A range of problems can occur with only one payroll-trained employee. However, an experienced payroll company needs access to basic information to carry out their task. An outsourced payroll can improve productivity by allowing the staff free to continue with their jobs.

7. No need to worry about being out of date

In-house payroll functions must maintain software versions to ensure up-to-date tax tables are being used. Using outdated tax tables can lead to hefty fines. Companies would also have to pay maintenance fees in order to upgrade software on an ongoing basis. Outsourcing payroll removes these costs and disruption.

8. No need to train staff

Outsourcing payroll eliminates the need to train anyone internally which can be expensive. Not only does the initial payroll training take time, but the internal member of staff would need ongoing development. Staff would need to keep up to date with any changes in tax procedures and legislation. The joy of using a payroll company is that all the staff will be up to date with all changes.

9. Fast Payroll Processing

As the staff at payroll companies undertake payroll for many clients, they are able to carry out the process in a smooth, efficient, accurate and quick manner. Due to their expertise, it is realistic to expect them to carry out this work in a shorter timeframe than someone internally. This quick turnaround can be a great benefit for companies.

What’s Next?

If you are interested in a payroll service, the Wright Vigar Payroll Team are here to help. We have an abundance of knowledge and expertise and are well-equipped to tailor a payroll service to your needs. Discover more about our payroll and other employment tax specialist advice we can offer you at https://www.wrightvigar.co.uk/services/payroll/ or email wrightvigar.co.uk to speak to contact one of our specialists.