What is outsourced payroll?
Payroll processes expose businesses to a wealth of risks, so what is outsourced payroll and why is it beneficial?
Outsourcing payroll is better value than managing this function in-house, particularly when you consider the hours that can be spent inputting data, sending payments, reporting to government agencies, and correcting admin errors. This perhaps explains why data from YouGov suggests 64% of businesses outsource payroll for financial reasons.
While ensuring accurate - and timely - payment of salaries and wages is obviously important, staying on the right side of the law and meeting statutory compliance requirements is also critical. Non-adherence with regulations can result in serious legal and financial consequences.
Your payroll provider is a true expert in their field and well placed to offer advice and support in this area. When you consider the complexities of Award Interpretation in Australia and that there are at least 174 pieces of legislation affecting payroll in the UK – and changes to these rules are perpetual – specialist knowledge is needed to keep on top of compliance and regulatory updates.
Getting payroll wrong can have a significant impact on the everyday lives of your workers – and cause employee engagement to plummet. Getting pay wrong sends a message that you don’t care about the wellbeing of your workers and can leave them in a financially precarious position. Errors happen more often than you may think. In fact, research suggests 60% of workers in the UK have noticed errors on their pay slips - and 20% have actually quit their job after a poor payroll experience.
Around a quarter of organisations (24%) choose to outsource payroll specifically to focus on other areas of their business. When you are busy with your day-to-day activities, managing payroll can be a distraction, even if you have a dedicated person in-house to manage the process. According to the recent Future of Payroll Report, from the Chartered Institute of Payroll Professionals, over half of survey participants reported they don’t have a succession plan within their payroll department – meaning that for many businesses, the payroll department consists of one person. What happens when that individual is on holiday, sick, or leaves? Upgrade to outsourced payroll and you don’t have to worry about such occurrences, freeing up time, resources, and headspace which can be directed towards growing your business.
Speak one of our payroll experts for more information on how Comenura's Payroll solution can support your business.