How much does payroll outsourcing cost? The truth is that the price can vary depending on the level of service you’re looking for. But you may be surprised at how cost-efficient it can be to hand the process over to experts outside of your organisation.
There are many factors to consider when weighing up the options of outsourcing. If you’re wondering about payroll outsourcing costs, this article could clear a few things up for you.
Payroll outsourcing costs: is outsourcing worth it?
Improved accuracy.
Everything has a price. If you’re looking for a service, you’ll have to invest in it. When it comes to your payroll, you want to know you’re getting your money’s worth.
Hiring an outsourced firm to run your payroll means placing trust in the hands of a seasoned professional. An experienced payroll administrator is also less likely to make costly errors.
If you make a mistake on your full payment submission to HMRC, you could receive a fine ranging from £100 to £400, depending on whether it’s your first offence.
Outsourcing payroll to a professional can lower your chances of incurring these penalties. Fewer payroll errors can also help you keep the trust between you and your employees.
Reduced staffing costs.
Hiring a full-time payroll administrator is expensive and time-consuming. The recruitment process alone can be a drain on your resources, especially if you pay to place ads for the job opening. Then, once you do find the right candidate, you’ll have to factor in everything from training costs to paying your new staff member a competitive salary.
Depending on your existing financial processes, you may need to pay for payroll software, as well as any computer equipment your new administrator needs. An outsourced firm will already have the latest software at its disposal, so that’s one less thing for you to worry about.
More flexibility.
One of the key benefits of outsourcing payroll is you’re not obliged to pay for the days they don’t work.
With an outsourced firm, you’ll only pay for the services as and when as you need them. If you have a quieter month and have more admin wiggle room, you may not even have to outsource at all.
This flexibility can give you more financial freedom, as you won’t be bound to continue paying for the service unless you need it.
Win back time.
Many firms invest a lot of time and effort into getting their payroll right, but chances are you could be doing something more valuable with your time.
That’s the beauty of outsourcing. With an expert outside your organisation handling tasks like payroll and bookkeeping, you’ll be able to focus on your area of expertise.
Investing more time into other parts of your business can help you provide an better service to your clients — and could even result in you generating more revenue in the long run.
Get in touch to discuss outsourced payroll costs and find out how our services could save you money.