Do you already outsource your payroll? If not, you may be thinking it is time to start, with the ever-changing legislation causing problems in house or, if you do then you may be wondering if your current provider is right for you. Hopefully the information below should be able to assist you in your decisions.
Working with the right payroll provider can be invaluable for your business – saving time and often money, and certainly removing a lot of the stress of pay day. Furthermore, persevering with the wrong payroll service can end up causing more stress than running your payroll yourself. It is incredibly important to find the best fit for your company when it comes to your employees’ pay.
When looking for a new payroll provider, the most important considerations are:
Confidence and trust – you must be sure that your payroll provider will maintain the highest of standards to keep your data safe, complying with GDPR and all UK employment legislation.
Reliability – you need to be able to trust them to provide an accurate and timely payroll service, and to do what they say they’re going to do – that they will work to the agreed timescales and provide the required reports and reduce/eliminate the cost of payroll errors – in money and reputation.
Communication & contact – a good payroll provider will give you a point of contact and will be easily contactable and quick to respond to any queries or payroll instructions.
Comprehensive service – ensure the agreement covers all required services. Ensure the contract of service is clear, with no ambiguities, and that you are agreed on the responsibilities of the payroll provider. Who makes the salary payments, who makes the payments to HMRC, who is responsible for pension assessments and uploads, who ensures the company’s compliance with The Pension Regulator? Establish your payroll needs and preferences – choice of reports and distributing payslips etc. Agree a clear pay day schedule (when is pay day each month, when do you need to send in the payroll information, when is the deadline for approving the payroll etc)
Cost of payroll service – look for open and honest pricing and be confident that the new payroll provider fully understands your business needs and goals. What extras could arise and how will they be billed? Make sure you are clear on how you pay for the service and are happy with the invoicing schedule.
Switching payroll providers can seem a daunting or even overwhelming task but rest assured that a good payroll provider will take ownership of the transfer process and will have the experience to ensure this is completed as efficiently as possible.
A new payroll set up is undeniably a big task, but once established with a company you trust, you can enjoy a smoother, more consistent experience going forwards, with minimum input from you each month.
Be sure to check any contractual notice periods to leave your current provider (fees for early termination) and the minimum contract length/contract terms with new provider.
If you would like any information on when the best time is to start outsourcing your payroll or move to a new provider, then don’t hesitate to get in touch.