It is acknowledged that outsourcing can be a useful resource management tool that can save money and aid profitability. Payroll Outsourcing is one such area that has enjoyed considerable growth in the past few years as an effective outsourcing and management service that benefits businesses and organizations. It is one of a number of outsourced processes that help to streamline the business management process in small, medium and large companies and organizations. And in the process provide effective benefits in a cost effective fashion.
Of course different businesses or organizations in the private or public sector can have specific requirements, ie GP Practices and Dentist Surgeries, international offices etc.
If your business or organization is investigating ways of reducing administrative costs, this is an area worth considering.
So What is Payroll Outsourcing?
Once upon time, Payroll Outsourcing only extended to bureau services whereby, businesses sent the relevant payroll information, and their provider would carry out the necessary calculations, provide reports and payslips for the employer to distribute to their employees on payday. Although the calculations are carried out externally, it still required a company employee to input the data. In effect, this set up represented a partial outsourcing service.
Today there is a wide range of payroll services that can be rolled into a Managed Payroll Outsourcing Service. Businesses and organizations can effectively have their provider do the following:
- Manage all HMRC questions
- Answer staff payroll queries
- Calculate staff pay
- Arrange distribution of payslips
- P60 Printing
- Electronic Filing
- BACs payments to employees Bank Account.
In addition, if required you can still have a human resource in the form of dedicated a paid Payroll Clerk who is working externally elsewhere, but, employed by your provider, then removing the responsibility and cost of HR management.
Payroll Outsourcing is also useful for international organizations wanting to expand into new international markets and require packaged administrative solutions.
Cost is the main business driver behind the growing popularity of Payroll Outsourcing. It saves money and time, offers business and organizations the prospect of streamlining another business process which can yield immediate cost savings through:
- Eliminating management of human resources
- External costs a fraction of processing internally
- Remove responsibility for maintaining expensive software.
With the variety of providers within the Payroll Outsourcing sector, businesses can certainly afford to shop around to ensure that they buy in services that are appropriate to their individual needs.