Every business should ideally have a payroll system in some form or other. After all it’s probably one of the most important tasks for that an employer should perform. All employers need to process payslips and salary payments correctly and on time, every time. Payroll mistakes can leave you at risk of hefty fines from HMRC, and so traditionally, payroll has been one of the most outsourced processes in the business world.
There are a number of benefits of outsourcing your payroll and these would include:
- Cost-savings as you are not spending money on training, software, staff and other resources
- As a business owner you will save time and be able to focus on other more important aspects of your business
- You can be confident that in outsourcing your payroll that your employees are being paid correctly
- You will be able to sleep at night, with peace of mind that your payroll is HMRC compliant
- Using an outsourced payroll provider will give you more security as opposed operating your payroll in-house where your business maybe subject to staff being unable to attend work.
- If you outsource to the right payroll provider then they should be able to bring your business cost-savings.
- Outsourcing your payroll also gives you greater flexibility, control of costs and improved cashflow.
- Some payroll providers also include HR Management plans and control over your data security.
Advancements in payroll software have improved the ability for small businesses to process payroll themselves, and today, more and more businesses are opting to bring their payroll in-house. Opting for the right payroll software can mirror many of the benefits of outsourcing.
Cost when processing payroll in-house vs. outsourcing
Take, for example, cost-savings. Outsourced payroll services are typically priced on a monthly basis, with pricing based on the number of staff that you employ and the frequency with which you pay your staff. You would be best to shop around to see what the costs would be to transfer over your payroll as fees vary by company and the complexity of the payroll. Your payroll outsource company will need to take into consideration any setup fees, last minute adjustments, automatic enrolment, access to the reports you need plus much more.
On the contrary, employers who decide to handle their payroll in-house have the upfront cost of the payroll software. Some payroll service providers also argue that there is the additional cost of training employees, or maybe you might need to hire a new staff member with payroll experience to manage the payroll. But what if there are minimal training costs? What if there is no hidden software costs for additional functionality and support?
With FSEV, we have a simple pricing structure & tailor make packages to suit individual business needs. There is no additional charges for CIS, expenses and benefits etc. Best of all, you don’t need to be a payroll expert to use our services. The software is easy-to-use, even for someone with little to no payroll experience. Should you need assistance, we’re here to help with free phone and email support.
Workload when processing payroll in-house vs. outsourcing
One of the key benefits of outsourcing your payroll is the time saving advantages. However, the reality is that you may still be doing some of the work yourself when you outsource your payroll. The employer or HR Manager will still need to give the information to the payroll bureau, be it on a spreadsheet or through an online portal. Changes to employees hours and payments need to be monitored in-house, regardless of who actually processes the payroll.
If a new employee is hired, the employer or HR manager will still need to collect all of the new starter’s information. The amount of effort required by the new employee and the HR staff is the same if the payroll is processed within the company or with a third-party provider.
Process payroll in-house or outsource – which should you choose?
Although there are many benefits to outsourcing your payroll, you can get the best of both scenarios when you choose the right payroll software. With FSEV, you have the cost savings, data security and compliance, without compromising your workload, control and flexibility. You also have the added benefit of an additional suite of HR features including an employee self-service app, leave management tool and HR document hub.
