Payroll is a task for businesses using Pay As You Earn – but have our ever wondered whether to outsource payroll for your business?
Outsourcing helps your business grow as well as meet compliance requirements, according to an article from business magazine Forbes. As well as IT and HR, tax experts are among the top 10 outsourced services used by businesses.
Among those services provided by accountants, such as Concept Accountancy is payroll. But many companies have still to decide about whether to outsource payroll.
Why outsource payroll?
Payroll is a necessary job for businesses, as we’ve mentioned before. But it can be complicated and time-consuming because it’s not just about paying your employees’ wages. Payroll includes calculating payments, making the correct deductions, paying the correct tax and ensuring the money reaches your team.
Having someone in your business tackling this task could mean they’re not focusing on areas of growth for your company. Outsourcing the job will not only take away hassle, it’s also more cost effective these days thanks to accounting software.
What payroll providers do
Each payroll service provider offers different levels of services. At Concept Accountancy, we recently welcomed a new member to the payroll team as more clients request this service. We help by:
- Working out pay – including benefits and reimbursements
- Deducting the right income tax from employees
- Making deductions required, such as retirement contributions
- Filing taxes with HMRC and making payments on your behalf
- Paying employees
- Keeping necessary records
What type of payroll service?
Payroll providers are usually accountants or bookkeepers. But there are specialist companies offering only payroll services. Our clients like to use us for payroll because it means all their financial matters are in one place and it’s easier for us to keep to track of their payroll.
Generally, there are two types of services:
- A full-service provider
Full-service providers manage payroll from beginning to end. You simply supply all the data required about your business and your employees and they do the rest.
It is easy to do and will cost a little more, but it will save your time. These providers need access to timesheets for hourly workers and notice of any changes to an employee’s terms or tax status.
- DIY providers
You can also choose payroll providers who carry out the more challenging aspects and leave you to do basic admin. You may record attendance and other employee records but your provider calculates pay, taxes and deductions.
What to do next
If you have accountancy software, you might be able to use it for payroll services. But if the idea of outsourcing payroll appeals, and you already use an accountant or bookkeeper, they may offer payroll services. If not, we can help, whether that’s for the full service or to carry out the more complicated parts around compliance.
Contact our team today for more information.
Our blogs offer general advice. Whilst we are tax and business finance experts, our blogs cannot cover every aspect of business accounting. Always ask for advice from a professional, qualified accountant before making decisions.