Many businesses often have internal discussions about whether to outsource their payroll or employ someone in-house. Tina Davies, Payroll Manager at Bevan Buckland, has spent time collating and debunking common myths related to outsourcing payroll, as well as emphasising the importance for businesses to structure their payroll function in a way that best fits business requirements.
Myth One: Only Large Companies Need to Outsource Their Payroll
In fact, even small companies, with only a few employees, can benefit from outsourcing their payroll. Third-party providers will have the technology, reporting capabilities, and expertise that small businesses can utilise to make payroll-related tasks more efficient and minimise errors.
Ultimately, the business’s requirements and the benefits available to them should determine whether payroll is outsourced, not the company’s size.
Myth Two: Keeping Payroll In-House Is Cheaper Than Paying for the Service From a Third-Party Provider
In-house payroll requires recruitment and training costs, IT support, payroll software, and other associated expenses. The time spent on back-office tasks, such as payroll, could be better spent on revenue-generating activities.
Outsourcing payroll is a cost-effective solution that saves a business from incurring these expenses while freeing up the company’s time.
Myth Three: The Business Will Lose Control Over Its Finances or Not Have All the Necessary Information
Many providers will offer specific packages to meet your business needs, allowing you to choose which elements you still handle yourself.
You also maintain complete control and access to all of your payroll data. The account manager will provide you with all the information and reporting, just as an in-house payroll manager would.
Myth Four: Transferring From In-House Payroll to a Third-Party Provider May Be Difficult and Disruptive
This is untrue, as many providers have processes in place to ensure a smooth transition and will provide you with clear information throughout the process.
Myth Five: As the Payroll isn’t In-House, It Will Lead to a More Unreliable Service
In reality, an outsourced payroll service can consistently provide reliable and accurate data processing.
Outsourced payroll services must provide confidentiality, accuracy in processing, and meet payment deadlines; otherwise, their business would suffer. For example, Bevan Buckland achieves payslip accuracy levels of over 99.85%.
Summary
In conclusion, outsourcing payroll is beneficial because dedicated providers stay up-to-date with the constant changes in legislation, alleviating pressure from in-house teams and freeing up time for them to focus on tasks related to revenue generation or business growth.
How We Can Help
At Bevan Buckland, our payroll team acts as an extension of each of our clients’ businesses, always maintaining the highest standards of quality and transparency.
We offer a complete package of payroll services in Swansea, from processing the payroll to sending electronic payslips to employees. We can compile bespoke reports, and as we are a BACS bureau, we can process payments directly to your employees and HMRC on your behalf.
For a complimentary, no-obligation discussion on how we can help your business, please get in touch with us by calling 01792 410100 or emailing mail@bevanbuckland.co.uk.
