Employee Ownership Trusts (EOT) which come with a host of attractive reliefs. EOTs can be good for business exit.
When does it make sense to outsource payroll
11 March 2020
Are you an employer who is spending too much time and energy taking care of your payroll requirements?
If the answer is yes, then it may be time to consider outsourcing to an external payroll team.
There aren’t many businesses that wouldn’t benefit from outsourcing their payroll. There are a large amount of different legislation and requirements to be taken into consideration which can make the whole payroll process long-winded and complex. Add this into having a large workforce with a high employee turnover and multiple amendments, and this could be a problem.
So, how will you know when is the best time for you to outsource your payroll? Have a think about the following:
You should consider the amount of your own time that is consumed by the payroll process and whether this time would be better invested elsewhere. Essentially it could be costing more to keep this process in-house.
Everyone can make a mistake, we’re all human, however when it comes to payroll you cannot afford to make any mistakes. Mistakes involving payroll generally return at a high cost, through either problems with the employees affected or government agencies.
Outsourcing the payroll process to an experienced payroll provider who has the systems in place, will reduce the chance of making serious and financial errors. This will result in re-assurance for you and your business.
Let’s face it, with an expanding business, managing the payroll process and all your employees can consume a lot of your time. On top of this, you may need to employ a manager or assistant to oversee the entire process to ensure that all the information is processed correctly especially if you do not use a professional payroll system.
All I need to do is process the payroll and make sure my employees are paid on time, right? The answer to this is no. You must ensure that you stay compliant with all current legislation and requirements as this may result in penalties being handed to the business. The great thing with an outsourced payroll specialist, is that they offer a knowledge resource to support any compliance issues you may have with also ensuring that everything is adhered to correctly. At Fortus we also have a HR team on hand to further bolster this support and advisory area.
Consistency is key when processing the payroll. Whether you pay your employees weekly or monthly, every employee must be paid at the same time in each period. You may have an influx of starters and leavers in one month, however the payroll can never be stopped or delayed because of this. You must never miss a payroll period for your employees or for tax purposes.