MForce
09-22-2011, 09:08 AM
For a very small business payroll processing isn't a big issue - free software provided by HMRC (which you can download from their website) allows you to easily calculate and file PAYE and NI contributions and making payments is a matter of organising a few BACS payments every month.
But when your company grow a little larger and you take on more staff with differing employemnt types, payroll can become increasingly complex. Many companies will shift payroll processing over to an accountant at this stage, but is this the best option?
Accountants are experts and specialists in a wide variety of tax and finance issues and as a result are overqualified for the time-consuming yet relatively simple job of payroll processing. As such you could end up paying over the odds.
There's so much choice in the payroll outsourcing market that prices are very competitive and switching to a dedicated payroll company to administer your wage bill could save you a bundle in the long term. But you still need to choose the company and service carefully.
Things to consider when looking for a payroll provider include:
Service package - hosted payroll solutions outsource just the payments, payslip and reporting elements of payroll, providing you with software to input all the data on hours, employee status etc. Managed payroll solutions outsource the complete process i.e. teh payroll provider becomes your payroll department.
Number of employees - Some payroll packages have minimum and maximum numbers of employees that they can deal with. Think carefully about whether your business is likely to expand over the term of the contract
Contract length - A typical contract will run over a 12 month period. You may be offered a better rate for a longer term but will this provide the flexibility your company needs?
Termination clause - The current business environment can be hostile to small and large firms. If the unexpected happens you don’t want to be stuck paying out large sums for a payroll service you don’t need.
Hidden charges - Will you be charged for software updates, tax code changes, P45s or P60s, end of year filing? Make sure all charges are included in quotes.
HMRC accreditation - A payroll provider should provide software endorsed by HM Revenue and Customs’ ‘Payroll Standard’, ensuring compliance with UK law and freeing you up to worry about the bottom line instead.
For more information on sourcing a payroll company and a free service for comparing quotes from UK providers, visit http://www.approvedindex.co.uk/payrollservices/
(http://www.approvedindex.co.uk/payrollservices/)
Hope you've found this useful!
Mforce
But when your company grow a little larger and you take on more staff with differing employemnt types, payroll can become increasingly complex. Many companies will shift payroll processing over to an accountant at this stage, but is this the best option?
Accountants are experts and specialists in a wide variety of tax and finance issues and as a result are overqualified for the time-consuming yet relatively simple job of payroll processing. As such you could end up paying over the odds.
There's so much choice in the payroll outsourcing market that prices are very competitive and switching to a dedicated payroll company to administer your wage bill could save you a bundle in the long term. But you still need to choose the company and service carefully.
Things to consider when looking for a payroll provider include:
Service package - hosted payroll solutions outsource just the payments, payslip and reporting elements of payroll, providing you with software to input all the data on hours, employee status etc. Managed payroll solutions outsource the complete process i.e. teh payroll provider becomes your payroll department.
Number of employees - Some payroll packages have minimum and maximum numbers of employees that they can deal with. Think carefully about whether your business is likely to expand over the term of the contract
Contract length - A typical contract will run over a 12 month period. You may be offered a better rate for a longer term but will this provide the flexibility your company needs?
Termination clause - The current business environment can be hostile to small and large firms. If the unexpected happens you don’t want to be stuck paying out large sums for a payroll service you don’t need.
Hidden charges - Will you be charged for software updates, tax code changes, P45s or P60s, end of year filing? Make sure all charges are included in quotes.
HMRC accreditation - A payroll provider should provide software endorsed by HM Revenue and Customs’ ‘Payroll Standard’, ensuring compliance with UK law and freeing you up to worry about the bottom line instead.
For more information on sourcing a payroll company and a free service for comparing quotes from UK providers, visit http://www.approvedindex.co.uk/payrollservices/
(http://www.approvedindex.co.uk/payrollservices/)
Hope you've found this useful!
Mforce