A business’ payroll system is fundamental in operations.  

Paying staff accurately and on time is the cardinal rule of payroll. Not paying employees for their work is the quickest way to upset them at a moment’s notice.  

However, it’s not as simple as it seems. In the UK, there are currently 174 pieces of legislation which directly affect payroll. 

The risks of getting it wrong are significant, not just because of the impact on staff, but also the threat of fines and reputational damage.  

So, when is the right time for a growing business to seek help with payroll and what can they stand to gain by outsourcing one of their most important business processes? 

When to consider outsourcing payroll 

For a lot it comes down to the size of the business. In basic terms, the more employees, the more processing required. Although payroll outsourcing goes beyond simply taking the processing requirements away from an internal resource, it removes the complexity, the need to know how to navigate all the legislation and system costs.   

Payroll can be a real value add and deliver to the bottom line of a business through smart and efficient management. If the management of its operation is taken away from business owners, it means more time to focus on other aspects of the business.  

What to look for in an outsourced payroll provider

Each business will have their own priorities and what they look for from an outsourced payroll provider. Some will be driven by cost alone, while others will look for synergies between them and the provider. 

Communication is a key part of the relationship. There should be a direct line between payroll and multiple business functions and the provider should be seen as an extension to the back-office team. If there seems to be a good match up from the start, then the relationship is on the right track. 

Trust is also of huge importance. A provider needs to be in a position to handle all payroll requirements to the level and deadlines required. If this happens and there’s a trust that everything will be taken care of without any worries, it’s a big plus point. 

Important actions when transitioning to outsourcing 

Of course, regular and proactive employee communication needs to be at the forefront of the transition. Staff need to be comforted that there will be no change to them receiving their pay, it’s simply a case of this being handled by an expert provider. Payslips may be delivered via another method but it’ll have no impact on their wages. 

We are here to help 

Ivybridge Accountants have recently re launched payroll services – If you would like a quote, have any questions in relation to payroll processing, outsourcing or anything else please get in touch.