October 07, 2020
Small and medium-sized enterprises or businesses need someone to do their payroll just like large firms do. Outsourcing will not only save your time but money as well. In fact, one can argue that they need to be more careful in their search for payroll outsourcing companies as they should focus on the expansion of their company and so invest more time in business than payroll. Even if an SME has a limited employee base, any progressive company would expect to hire more employees in the future. Thus, it makes sense to have a professional take care of this front.
Getting payroll right is certainly not something you can sneeze on. To ensure things are being processed right you would need to dedicate a lot of time and the equivalent of effort. Plus, all the new changes that keeps coming in need to be absorbed and understood. This is why over a period of time; payroll administration can begin to feel a full-time job. And the more employees you have the harder it will get. But the expansion of your staff should be good news for your business and not instead make your brow break into a sweat as you dodge to meet all the necessary compliances.
Hence, instead of spending your time which you can’t ascribe a fixed amount to. It makes sense to have someone handling the payroll element so that your employees are happy as well. After all, who doesn’t like their salary on time and that too glitch-free? Also, amending mistakes causes confusion and adjustments, something you as an employer certainly would prefer avoiding.
Payroll outsourcing will not only save your time but money as well. There are many government-related schemes and plans for employers. Also, having someone work on the right software and give you the relevant reports will aid in record keeping. Also, having your payroll reports right means that your employees will raise fewer queries because wage records that don’t tally usually bring with them a score of complaints ranging from reduced or stopped payments from the DWP to a loss of NIC and PAYE payment record. Thus, the best way to save your time and keep your employees happy would be to ensure that their records tally with those of the HMRC.
Since PAYE and NIC liability payments are a monthly process, making an underpayment can happen more often than not. Furthermore, with the introduction of the workplace, pensions employers find that things have become even more difficult as they have to make sure that they upload the contributions as well as keep sufficient funds for when the pension provider collects the payment. Not to mention assessing their staff at every pay run for eligibility. The bottom line being obviously: Prevention is better than cure even when talking about penalties.
Companies looking for payroll don’t just have to be large firms. Just because you are the owner of a small business doesn’t mean you have all the time in the world. In fact, it is the polar opposite. In the rush to expand your business it certainly won’t do to miss pay dates or mess up while paying your liabilities as this will break the trust of your employees as well as the HMRC. Therefore, a small expense can go a long way and help you save too. So instead of doing the payroll yourself and hiring someone especially for it full time, you can have your cake and eat it too (with the icing) by outsourcing instead and getting someone do it for you.