Why And How SMEs Benefit From An Outsourced Payroll Service
Businesses of any size will find that there can be huge benefits to outsourcing their payroll services. However, small- to medium-sized enterprises (SMEs) in the UK can find additional advantages in outsourcing payroll services. Let’s discuss the ways in which SMEs can benefit from outsourcing payroll.
Cuts Payroll Administration Costs Significantly
Outsourcing the payroll for your SME can be the most cost-effective solution to this part of your company. Businesses will discover a wide range of savings on payroll administration when they opt for outsourced services. These include:
- zero capital expenditure required on payroll software, payroll supplies - such as wage slips, and professional payroll input when needed.
- zero costs for the ongoing training and advice on all the latest payroll legislative changes, as outsourced payroll providers will ensure all client businesses are up to speed with HMRC requirements.
Greater Levels Of Accuracy From An Outsourced Payroll Provider
Any SME benefits from the higher levels of accuracy supplied by expert payroll services. Using professional payroll providers means opting for a service that offers greater reliability and precision, alongside advisory services which may include handling queries from HMRC.
Auto-enrolment Can Be Tricky To Administer
The UK is going through enormous change within the area of workplace pensions at this moment. And, further changes due from 6 April 2019, mean it's critical to have the payroll software in place to handle the increase to employer's pension contributions. Employer pension contributions increase to 3% from the start of the 2019 tax year, and not all payroll software will be able to handle an increase due part-way through the month. You can find out more about auto-enrolment and pensions contributions on the website of the Pensions Regulator.
Using an outsourced payroll provider eliminates all the stress and headaches of regular payroll runs. It allows SMEs to focus all their energies on growing their business, without any further need to worry about whether the payroll is being operated correctly. Outsourcing also gives the added peace of mind and knowledge that salaries will always be paid on the designated pay date.
Finally, outsourcing the payroll for your SME means your business benefits from all the most secure features on offer, so you can be sure all your confidential data is handled in the most sensitive manner.