In today’s time, many companies outsource their payroll functions into other hands in order to put off the burden from their heads. Business owners face much pressure as they have to perform many tasks on day to day basis and outsourcing of payroll can put off at least one burden from their heads. To outsource the payroll, company’s hire payroll specialists as they are specialized in performing tasks like calculating pay & deductions, transferring of salary into employee’s account as well as filing of associated taxes.
Why Outsource Payroll?
Running a payroll is a complex and a time consuming task and many business owners prefer outsourcing it to experts as it involves lot of legal requirements as well as risk of getting things wrong. Payroll outsourcing is beneficial as it saves lot of your time & gives you extra peace of mind. It saves much of your cost as well as all the tasks are performed on the software by experts at a relatively low cost.
What Payroll Providers do?
Payroll providers perform lot of tasks on day to day basis and provide many services from which you can easily choose the services as per your requirement. The general duties performed by a payroll specialist’s are –
- Maintaining payroll records
- Calculating salary deductions of employees including benefits & reimbursements.
- Deducting employee taxes
- Transferring the salaries of employees.
- Making other deductions like retirement contributions.
- Filing taxes to HMRC
Types of Payroll Services
There are different types of payroll services offered by payroll specialists. They can be bookkeepers or accountants or specialized payroll companies. Some payroll service providers deal with small businesses whereas some providers target big businesses to provide payroll services. Payroll service providers also differ in service levels as well as the way of delivering services. They are divided into two categories –
Full Service Payroll Providers
Full service payroll providers manage all your payroll tasks from start to finish. You only need to provide your business & employee data to the payroll provider and they will look after everything else.
As per the cost is concerned, it is a bit costly. In order to make effective communication with the payroll service provider, you also have to use strong & an effective system so that you can easily share the information related to employees such as employee’s attendance, salary notices or changes to a worker’s employment terms or tax status.
DIY Payroll Providers
DIY payroll providers only deal with complex parts of payroll and leave the basic admin parts to you. For ex – Recording time, attendance and maintaining employee records is your responsibility whereas calculation of salary, taxes and other deductions are the responsibility of payroll service providers.
How to Choose a Good Payroll Service Provider?
Payroll is one of the most important parts of your business and it should be handled properly. You should be very cautious while choosing a good payroll service provider and it is not an easy task. Keep these important points in your mind at the time of choosing payroll service provider –
- Get the right level of service – Make sure that the payroll service provider provides right services to you. Ensure that you pay only for the services you required, not for the services you don’t want to be a part of.
- Automate the easy stuff – Make sure that your service provider is using automatic software for managing all payroll related tasks. If yes, you don’t have to pay any professional fees for basic admin jobs.
- Check employee details regularly – It is important to know what process is used by the payroll service provider for checking and updating employee information. Any change in employee details can affect deductions as well as legal requirements. Therefore, service provider should be very vigilant in updating the employee’s information. As soon as the information reaches the service provider, it should be updated in the software.
- Secure your data – Ask your service provider that what steps he or she will take to safeguard the privacy & security of your business and employee data. Tell him to ensure that data shared with him will remain secure.
- Work with what you have – Always check first what your accounting software can do. If you are having great software &it can automate your payroll, only a consultation with an accountant who’s familiar with the software can serve your purpose.
- Work with who you know – Better know the peoples who you are working with. Some accountants & bookkeepers are payroll providers too. Communicate with your accountant and ask whether he or she is involved in providing payroll services or not.
It totally depends upon you that whether you want to outsource your payroll or not but if you will outsource, you will spend less time thinking about payroll and more time running and growing your business.
How Nomisma Payroll Software helps?
Nomisma Payroll Software helps in the following ways –
- It makes strong coordination between business owners and payroll service providers.
- It makes your payroll tasks faster.
- Maintains payroll records
- Calculate salary deductions of employees including benefits & reimbursements.
- Deducts employee taxes
- Transfer the salaries of employees.
- Make other deductions like retirement contributions.
- File taxes to HMRC
- It helps in increasing your client base.
- It provides you opportunity to work with any business owner across the world.