subject: Outsourcing Payroll: An Inexpensive Alternative [print this page] Outsourcing payroll is an effective means of paying your employees the right amount of money after all the neccesary deductions have been assessed and deducted.
How do you save money?
Running your payroll system at present probably requires technical equipment such as computers and the payroll programs, together with the staff to use them.
This can be very costly as your staff will have to keep up to date with changes and your hardware and software will require updating and maintenance.
However if you outsource your payroll and have an external company pay for the staff, computer hardware and software you will only need someone to collate the hours worked by each of your employees and forward the details to the outsourced payroll company.
There would be no need for a dedicated person in your business to deal with a function that can easily be outsourced.
Outsourcing Payroll - Legislation Concerns:
It is hard enough running a business without all the legislation which can make life difficult in small to medium sized firms.
The larger corporations are fortunate in that they have the funds to employee payroll personnel who's sole function is payroll. Much smaller business however have employees juggling more than one role.
Local government regulations and all the other laws, rules and regulations have to be dealt with and so it makes financial as well as fundamental sense to outsource the payroll and let the specialist company deal with all the changes to tax, benefits, national insurance and other ever changing deductions.
As well as improving costs it allows the business owner to work at the centre of the business rather than worrying about the next change.
Outsourcing Payroll - Professional Image:
The world has grown smaller as the internet has grown bigger and now we compete for everything including clients, customers and even employees.
One of the benefits of using an external payroll company is the professional and positive image it creates with your employees.
Dealing with the busy daily tasks and operating issues can in some cases lead to an inconsistent pay system that continually lets employees down.
Outsourcing payroll means that you as the owner only need to supply the hours worked to the payroll company. Better still this communication can be by a simple email or similar system. The payroll company then has everything in place to work out deductions and net pay.
Once formulated the payroll provider can forward the payslips and the net wage amounts for each employee leaving you with the simple task of handing out payslips and completing the neccesary bank transfers.
By using such a system you give your employees a better professional image and a feeling of secure employment.
