Business leaders and experts have long suggested that outsourcing non-core functions is just best practice.
A non-core function is technically defined as a function that doesn’t turn a profit. Despite this though non-core functions can be absolutely essential, and one of these is payroll.
But, what do you really gain from outsourcing payroll? Is it worth the effort to identify effective and reliable payroll service providers? Do the benefits outweigh the extra effort?
So, what are the benefits?
Focus on Investing your Time Back Into your Business
Payroll is a critical function of any business, whilst it may not increase your sales, it may well decrease them if it is performed poorly.
It’s a time consuming process and may well take hours or even days of your time to complete, and this is all time that could be spent focusing on important issues within your business.
Then there’s the obvious legal requirements that need to be adhered to, such as tax, national insurance and employment law. There are requirements around withholding taxes from the employee’s pay, and also calculating the employer’s portion of taxable income. In some cases there are electronic filing requirements.
Reduced Cost & Risk Factors
Outsourcing payroll can also help cost cutting measures, whilst cutting significant risks. In the UK making just small mistakes can cost companies thousands in fines.
In the case of the new National Living Wage, a company that is found to not be paying their workers the minimum expected by these new government guidelines, can be slapped with unlimited fines and could be publically named and shamed.
A good payroll bureau such as Secure Payroll Services offers support beyond what you could do alone. It delivers peace of mind, ensuring that you’re up to date and working within all legal boundaries.
What Should You Consider When Outsourcing?
It’s worth remembering that even if you’re outsourcing your payroll needs to an external company, you as a business owner are still responsible if anything goes wrong, so picking a reputable company like Secure Payroll Services is the first priority.
If you’re considering outsourcing payroll, it’s a given that you should look at the typical three points you’d look at when choosing any kind of provider:
Remember that you’re giving over private information to a new payroll company, so ensuring they’re reputable is vital. There are many horror stories of companies who didn’t do their research and ended up paying the price. Quite Literally.