How Much Money Do You Save With Outsourced Payroll?
The demand for outsourcing in business has been growing steadily in recent years, with one survey showing that 68% of UK companies outsource at least one part of their business. Furthermore, 51% agreed that outsourcing led their business processes to becoming more streamlined and running more smoothly. Outsourcing, in general, has grown in popularity due to its ability to boost productivity within businesses, but more specifically, payroll outsourcing has become a mainstream part of business function.
If you are wondering about outsourcing your company’s payroll, you may be wondering if it could save you money, and if so, how much? Outsourcing payroll can have a significant impact on your company, not only saving you money, but time and resources too. This article looks at the average costs of outsourced payroll services in the UK and the many ways that they can benefit your company.
Benefits To Costs
There are several ways in which outsourcing payroll can save your business money. On average, businesses can save 20% of their costs by outsourcing payroll. The costs of the service itself are usually based on a basic package that will be tailored to the individual needs of your business. However, the fees generally include a one-time fee for set-up, the monthly cost of the service, and tax preparation fees, varying depending on the size and requirements of your company. The costs and fees of the service can often be considered a solid investment when compared to the costs that will be reduced in switching to an outsourced service.
Firstly, when businesses process their own payroll it is common to overpay employees based on differences between inaccurate time records and employee time spent working. Furthermore, many small businesses can be hit by penalty fees for inaccurate filings. A good outsourced payroll provider will have capabilities that go beyond your own, and offer great deals that are cost-effective for small businesses.
Outsourcing also offers the opportunity to save substantially on software, hardware, employees and consumables. Payroll programs for businesses to process their own payroll can come with a whole host of costs, including acquisition costs, installation costs, regular updates, and the time costs while employees learn the system. There are also the costs that come with buying and maintaining computers, printers and other stationery used in the process of payroll, and the wages, holiday and sickness pay of the employees paid to process it. Outsourcing leaves these aspects to a specialist, while significantly whittling down costs.
Benefits To Time Management & Productivity
The time spent on processing payroll and managing taxes may be something that is taken for granted in your business, but have you ever considered how else that time could be used in your business if you were to outsource those processes? Especially in the case of small to medium-sized companies, the time saved when outsourcing payroll can be a valuable addition to your business’s growth and revenue.
In the current economic climate, more and more businesses are looking for ways to simultaneously lessen their costs while also boosting productivity and gaining a competitive edge. Outsourcing payroll is one effective method for reducing costs in the long run, while also giving employees more time to dedicate to important work. The administrative load is lifted so that your business can focus on key objectives.
Benefits To Risk Management & Security
Security is a big concern within the processing of payroll, with companies having to make sure they back up payroll data, correctly handle sensitive records, ensure complete compliance with regulations, and deal with any internal security issues. Once payroll is outsourced to a dedicated service run by experts in the field, these worries can be lifted from the shoulders of your company with the assurance that they will be handled thoroughly. Outsourced processing services use experts in the field or a tailored automated service that is highly efficient and reliable. Risk is significantly reduced, and errors are far less likely.
Save on money, time, resources and security risks by outsourcing your payroll to a reliable service provider. eSlip Payroll Services provides a cost-effective payroll service that can be tailored precisely to the needs of your business, ensuring there is a dependable and secure payroll system in place for your employees. Get in touch and find out more about how our services could benefit your business.
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