Universal Accountancy in Watford are an accountancy firm that offers outsourced payroll services.
Payroll can take up a lot of time when you are a small business, and as such you might want to think about outsourcing this for someone else to take care of.
You might be wondering what this is, and to put it simply, you send your payroll to another company, and they will provide this service for you.
How To Do Payroll
There are certain types of software that you can use to do payroll.
Every time that you pay your employees, you should use this software to keep a record on a number of things, and these include their :
- Deductions like tax or national insurance
- Produce their payslips
- Report any pay and deductions to HMRC.
This sounds quite complicated, and it can be if you aren’t entirely sure of what you’re doing.
That’s why there are companies like us that will take on this responsibility and do it for you.
How Payroll And Pensions Are Handled
An individual company responsible for handling the staff payroll may be required to make deductions from the pay of employees that will contribute to a pension scheme.
Under UK law, as an employer, you are legally required to ensure staff are saving for retirement.
This auto-enrolment process should be completed with payroll processing.
If this does not occur, costs will double.
Our service uses software for payroll processing and auto-enrolment of pension schemes to be completed together, easily and efficiently.
How Much Do We Charge For Payroll Services?
The amount that we charge will depend on whether you set up a monthly fee or cost per employee.
Your total cost will be calculated depending on a variety of factors such as :
- How many employees that your small business has.
- The amount of work needed to complete your payroll.
Pros And Cons Of Outsourcing Payroll
There are some pros and cons to outsourcing your payroll, and we are going to focus on the pros first.
One of these is that you it will free up quite a substantial amount of time for you as a business owner.
This is because someone else has taken over this service that you will have spent hours doing before.
As well as this, it could reduce the cost of your business as you will no longer need to hire a team to help you with this task.
Outsourcing this could mean that your business has more money to spend in other areas.
Doing the payroll is a complex job, and it can be confusing for a lot of business owners.
|Pros of outsourced payroll||Cons of outsourced payroll|
|Time saving||Trust outsource partner|
|Reduced salary overhead||Vet outsource partner|
|Reduced complexity||Time to vet payroll partner|
If you decide to outsource this section of your business, you know that you will be getting a professional job done by people who have trained in the field.
The con of this, however, are that you might find that a company unreliable.
It is possible that while they may do the job, it might not be done promptly.
You might end up chasing them around to get your completed service.
And this is going to take up a lot of time that you tried to free up by outsourcing this in the first place.