You have started your own business or you have been running it for sometime now and you are investing so much time and resources into making it a success. But are you keeping up with your obligations as an employer to your staff and to HMRC ? You start wondering: Is outsourcing payroll a good idea ? Admittedly, payroll can be very confusing and you don’t really want to take time away from running your business in order to consume your thoughts with payroll codes and holiday pay allowances.
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.
The pressure on business owners is not just limited to making sure their employees are paid on time and accurately. Rather since the introduction of Real Time Information (RTI) and Automatic Enrollment Workplace Pensions, the pressure mounts up as there are more demands for accurate and timely information from the regulatory bodies such as HMRC and the Pensions Regulator (TPR).
If you want to maintain payroll compliance while staying abreast of any legislative changes and reporting deadlines, then we put together for you six benefits of outsourcing your payroll to a professional payroll provider:
1. Outsourcing payroll is a major cost saver
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 on 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.
2. One less thing to worry about
As you concentrate on hiring and retaining the best employees to help make your business a success, by outsourcing your payroll, you can be assured that:
- Employees will be paid on time
- Tax and NIC payments are calculated correctly
- Statutory minimum employee and employer pension contributions are made for those that have opted in
- Details specific to employees such as bonuses, maternity / paternity pay, holiday entitlement as well as overtime are all accurately calculated.
3. Rest assured your payroll is accurate and its compliance is guaranteed
Payroll errors are far more common than you may think. For example, processing the usual payroll for one employee requires 14 different pieces of personal data. If any one of them is wrong, you have a payroll error.
Payroll errors don’t just frustrate your staff, they can cost you money. For example, late or incorrect submission of employee tax can lead to fines from HMRC.
By outsourcing your payroll to a small business accounting expert, you take away all that hassle. A professional payroll company like LAS Accounting Ltd uses specialised technology to ensure that your payroll is accurate and that it is processed on time, every time. They also are the first to know of tax code and legislative changes that affect payroll, and are experts at maintaining compliant payroll.
4. Stay up to date with any new payroll legislation
Each year the Government assesses the National Living Wage and the National Minimum Wage rates and determines if they are to be increased on 1st April. Your payroll provider will keep you informed of any changes and whether they affect you, whilst also ensuring you adhere to the minimum rate stipulated in law.
You also need to consider changes to reporting obligations and legislative compliance. Small businesses, in particular, can find it challenging to keep 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 as needed.
Specialist payroll providers have the expertise and awareness to ensure small businesses like yours are always well prepared to comply with new payroll legislation. This not only helps your business to move forward, it also helps you to avoid costly penalties.
5. Get payroll software with full secure online access to payroll data
Specialist payroll providers should give you access to online payroll portals that can give employers and employees 24/7 access to their data as well as any relevant reports. By going paperless, your staff members can receive digital payslips, as well as other payroll documentation such as P60s and P45s via a secure portal.
By using HMRC approved payroll software such as Brightpay Connect, employers can also easily manage all leave for their staff including annual leave, sick leave, maternity leave and paternity leave. The employee calendar allows employers to view the number of annual leave days remaining for each employee and how frequently an employee is on sick leave. Once an employee requests annual leave, employers can authorise or reject the request with changes synchronising back to the payroll software.
Brightpay Connect also comes with an employer dashboard, which provides an overview of employer details, any outstanding payments due to HMRC, upcoming calendar events, as well as a list of notifications such as outstanding employee requests made via the portal.
Employers can upload all sensitive HR documentation for staff in one secure online portal. This includes employee contracts and company handbooks, as well as disciplinary documents, company newsletters and training material.
6. No single point of failure
Companies who manage their payroll in-house usually only have one payroll specialist on whom they rely to run the payroll from start to finish. This can be risky if that employee falls ill or even when they go on holiday, who else could you rely upon to run the payroll for you?
Outsourcing your payroll to a payroll provider will come with a friendly team of professionals who can all run the payroll for you and answer any questions you may have about your payroll, so you can be safe in the knowledge that everything is in hand.
How can LAS Accounting Ltd help you ?
At LAS Accounting Ltd we can oversee your payroll processes, calculations and deadlines as well as take care of everything payroll related for your business. We only use Brightpay and Brightpay Connect software, which is HMRC and RTI compliant and helps businesses fulfill their payroll duties without unnecessary limitations or restrictions.
Now might be the ideal time to engage the services of an accountant to do all the work for you and provide you with all the tax advice you need.
Don’t hesitate to get in touch for any further enquiries at: firstname.lastname@example.org