It's National Payroll Week! Michael Blaken of Optimum Professional Services explains why you should consider outsourcing your payroll.
As an employer, payroll is among the most important tasks for your business - but running a payroll can be time-consuming, is highly regulated, with frequent changes and is easy to get wrong.
This week, September 6-10, is National Payroll Week. Founded in 1998 to celebrate the payroll profession and give it the recognition it deserves, it highlights the importance the payroll industry has in the UK through the collection of income tax and National Insurance.
So what better time to look at how you run your payroll and consider the benefits of doing it another way: through outsourcing?
Here are just some of the benefits of outsourcing payroll:
- Saving time. All a business needs to do is give the payroll provider information on standard hours worked, plus any variations such as days off for sickness or holiday.
- Keeping compliant. There is a hefty legislative side to payroll and many regulations that must be adhered to.
- Pension scheme compliance. An outsourced payroll provider will ensure the scheme used complies with automatic enrolment requirements.
- Accuracy. Using a payroll professional reduces the risks of errors.
- Queries. A payroll professional can deal with any queries from employees and HMRC.
- Employee retention. Paying wages accurately and on time enhances a business’s reputation as an employer.
- Professional support. Payroll clients at Optimum also have access to accountancy and legal services.
- Cost. When the time saving and convenience is factored in, outsourcing becomes a very cost-effective option.
- Peace of mind. By outsourcing payroll, the burden is taken off the business owner’s shoulders.
If you have a limited company and you are your only employee, you might feel outsourcing payroll is unnecessary. However, mistakes can still be made, even where there is a single payee.
Michael Blaken is accounts director at Optimum Professional Services in Swindon https://www.optps.co.uk