Tag Archives: Payroll Bureau

Payroll outsourcing for the SME!

How can outsourcing the payroll process help you?

There are tangible benefits in outsourcing for the SME and I have talked about it here and here.

Small businesses face constant challenges and are often looking for ways to streamline some of their processes and enable them to focus on their core business skills.

Why Payroll Outsourcing?

Payroll is of paramount importance to the smooth running of any sized business because it is concerned directly with a companies primary asset – its personnel. The mechanics of running a payroll in-house has become more complex over time with frequent legislative and changes in taxation.

Outsourcing Payroll Services

Payroll outsourcing has become a cost effective way of overcoming these difficulties coupled with the de-centralisation of finance departments into task specific i.e. AR, AP and Credit Control makes Payroll ideal for outsourcing.

Outsourcing your payroll function is one sure way a company will start to see savings by saving time, money and resources.

Here’s how!

1. Outsourcing once the sole preserve of the corporate is now just as cost effective for the SME’s who are increasingly benefiting from outsourcing their payroll and payslip printing.

Processing your payroll can burn a hole in your proverbial coat pocket particularly if your company has fewer than say 30 employees. Work out the hours your employees are devoting to payroll activities and then work out the costs for printing and distribution of the payslips?

2. An SME payroll can be a time consuming process particularly where you may have an employee who spends a certain amount of time a month on this very specific task and upon completion of the task returns to their preferred job or skill set.

3. In-house payroll can only be as reliable as the people doing the work. Utilising a payroll service will result in increased output, speed and quality will be consistently accurate.

4. Speed – as payroll service providers are specialists with technical resources and industry knowledge; payroll bureau can impart to you their advice and knowledge without you having to spend £’s.

With access to vast resources they can also handle any changes in your personnel and accommodate seasonal fluctuations without you having to worry about upgrading or changing systems.

5. A good payroll service provider will have the inside edge on up and coming legislative and tax changes likely to have an impact on your business and can implement whatever changes are required with minimum fuss to you.

6. Outsourcing mitigates the responsibility to a third party so any delays, paperwork inaccuracies or mishandling its down to the payroll service provider to ensure the issue is resolved.

7. Outsourcing ensures that as your company grows so do the payroll service company tailoring the service to fit with your company growth.

8. Lastly and often overlooked is SECURITY how do you ensure that there is no payroll abuse i.e. time and rate?

Use a checklist to make sure your payroll service company delivers what you want!

Checklist for using an outsourced payroll supplier

  • Can the payroll  service company tailor the service according to your needs i.e small, medium or large payroll
  • Do they have a proven track record with your type and size of business
  • Can they supply weekly/monthly/bi-weekly payslips and provide weekly, monthly and annual returns (this is going to change in 2013 with the introduction of RTI)
  • Ensure that the charges for setting up the payroll system, printing and e-slip viewing if required are transparent
  • Make sure the administrative charges for managing the system are included in your monthly/annual fee
  • Do their charges allow for making all the types of deductions
  • Are there any additional fees
  • How scaleable is the service if you expand and take on more employees
  • Is the software they use HMRC accredited and is it compatible with software you use
  • Does it keep records in a format that will allow for easy online filing of forms P14, P35, P45 and P46
  • Agree that they’ll calculate tax and deductions accurately from the information supplied
  • They’ll make these deductions to your timescales
  • Ensure mandatory requirements are completed or met within the regulatory timescale
  • Stipulate reimbursement for any resulting penalties
  • Specify they’ll keep necessary records of any taxes and deductions as required by the HMRC
  • Transparency of any additional charges you might incur
  • SLA (service level agreements) to ensure that your timescales and deadlines are adhered to

But most importantly ensure the payroll service company provide you with up to date reporting, hold regular review meetings with you and deliver the service they commit to from the outset.

This can only happen if you are absolutely clear about which components of the payroll you intend to outsource and have committed the process to paper. in a detailed brief. Both you, the company and the payroll service company are clear on what is going to happen, by when and by whom. It also provides a valuable document by which both parties can refer to in the event of any discrepancy or disagreement.

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For more information on Payroll outsourcing please fill in your details here and one of our advisors will call you.

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Outsource payroll services: How to manage the process of outsourcing your payroll?

Payroll outsourcing

Payroll processing and printing can be time consuming. Outsourcing some or all of the processes will save time and money

Outsource Payroll Services

How to manage the process of outsourcing your payroll follows 10 Reasons to outsource your payroll

I’ve talked about the benefits that can be acheived by outsourcing payroll, invoice printing and processing here are a few reminders:-

  1. You know what your monthly fixed cost for the operation is
  2. Allows you to focus on the area of business you hope to succeed in
  3. Allow experts to manage the process
  4. Reduce the cost of internal errors
  5. Speed up the process
  6. Benefit from your providers’ technology without having to make the investment
  7. Flexibility – you’re no longer reliant upon people to manage the process in-house
  8. Secure in the knowledge that any disaster that affects your organisation it’s business as usual for your outsource provider

You’ve now taken the unprecedented decision to outsource your payroll function.

What happens next?

The next step is to find a payroll provider that can faciltate your requirements?


Not so, when you are unclear or uncertain as to what you are looking for and what you need to look out for!

Where do you start?

You only have to google payroll bureau and a whole host of names pop up from the small to the large service providers and that’s where it gets sticky because do you have the time to search, research, evaluate, tender, set up visits to establish creditability then make a decision.

All told, the process might take you anything from 2-6 months and that is a conservative estimate.

Here are a few things to consider when outsourcing your payroll:-

 Small (1-50), medium (50-150) or large (150+) employees on your payroll will help determine the type of bureau you select to work with.

  • Expertise – does the payroll provider have relevant industry expertise to manage your payroll efficiently?
  • Flexibility – can they offer solutions tailor made to fit with your requirements and not a box that comes pre-packed and one you need to fit in?
  • Technology – can they offer online pay slips, paper slips or a combination of both? Can they manage multi-channel distribution?
  • Does their system offer the flexibility to integrate with yours?
  • What reporting functionality are you likely to get with each payroll run? Ask for sample reports and payslips both on and offline so you get to see the quality of the output. If you have a need for both paper and online slips how are the paper slips being printed – pressure seal (without envelopes) or A4 folded and inserted into an envelope establish the quality.
  • Find out if the cost of postage is included. There are a host of mailing discounts available via the Royal Mail and DSA (downstream access) which your payroll bureau should be able to offer.
  • One final thing – let your payroll team be instrumental in the project after all they will be the people managing some or all of the process going forward. Payroll outsourcing

What type of payroll services will you need?

  • A fully managed payroll system
  • Bureau payroll
  • Hosted
  • BACS
  • Multi-national payroll
  • CIS

 How do you then manage the process?

Project management is paramount. Any business process that integrates with the payroll function needs to be considered such as HR and Finance. A pay calendar or schedule is imperative for the bureau to determine cut off times and when data will be made available to the bureau for processing.

This must include BACS transmission dates, pay dates and the physical distribution of the pay slips.

During the migration phase the payroll system will need to be tested to ensure data integrity, compliance and accuracy with the current system.

This process is usually tested over a 2-3 month period where parallel runs will be done by the payroll bureau and measured for accuracy against the current system.

Feeling overwhelmed!

Digital Print Management are independent of any manufacturer, I.T. solution provider and print supplier.

As a solutions and print management specialist emphasis is on understanding the customers requirements and not trying to sell them something which doesn’t cut the mustard in the long term.

Put simply we offer a free consultative, no obligation approach to helping customers who are overwhelmed by the prospect of outsourcing any business process.

Processing and printing or the complete function of a department.

We are here to help so please do call us or leave a message and one of our consultants will be in touch.

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