Whether you employ one member of staff or several, processing payroll can be a long and complicated task. That’s why many people use a dedicated payroll provider who can specifically deal with processing payroll on your behalf.
So, what are the benefits of using a payroll provider? A question our friends at Stafftax are often asked.
1. Saves you valuable time
Processing payroll can be very time consuming by the amount of time taken can vary due to several factors, such as how many employees you have and the frequency of which they get paid. If you are a new employer and decide not to use a payroll provider, you may also want to set aside some time to familiarise yourself with your payroll obligations, to ensure that you are fully compliant.
Whilst using a payroll provider can be the more expensive option, it is worth considering how much time you will save by outsourcing. When considering your options, you should factor in the time it takes to process payroll, before making your decision.
2. You don’t need to learn about payroll
To use a payroll provider, you don’t require any prior knowledge or understanding of payroll. As your provider will be able to guide you through your duties as an employer and highlight any legislation that may impact you.
As part of a payroll service, the provider will usually undertake the following tasks on your behalf:
- Set up your PAYE account
- Send and submit electronic RTI reports to HMRC
- Run any salary or holiday calculations required
- Producing P45’s/ P60’s – when applicable
3. May reduce the chance of errors
When running payroll for an employee you must ensure that all figures are accurately reflected on your employee’s payslip. This should include details of any holiday or sick pay taken within that period. If the information is not accurately reported it can lead to issues further down the line which may result in you being fined.
Some of the most common payroll issues are the result of:
- Missing deadlines
- Misclassifying workers
- Miscalculating pay
By opting to use a reputable payroll provider, your reporting duties will not only be taken care of, but you will also be notified when a payment to HMRC is due, reducing the risk of incurring a fine.
If an issue with HMRC did arise during your employment journey, your provider will be able to investigate the issue further and if necessary, assist you through the process.
4. Supports you through the unexpected
Payroll providers will not only support you with your day to day duties and queries, but also any unexpected things that may arise during your employment journey.
For example, should your employee fall pregnant during their time with you, your payroll provider will be able to advise you if they are eligible for Statutory Maternity Pay (SMP) and if so, help you to claim it from HMRC.
5. Assist you with your other duties
Domestic payroll providers will often offer additional services to assist you with your employment duties, allowing you keep everything under one roof.
Additional employment services that you may wish to consider are:
- HR Advice
- Employers Liability Insurance
- Pension Service
By instructing a professional domestic payroll provider or accountant to set up and process your payroll scheme, you can sleep easy knowing your payroll duties are in safe hands the major benefit of using a payroll provider.
This blog has been written by our friends at Stafftax, who are our recommended service provider for payroll and more.
Stafftax have been providing professional payroll services, employment contracts, workplace pensions and trusted HR advice to thousands of domestic employers for more than 15 years. If you’d like support or guidance on these matters, the Stafftax team will be happy to assist.
If you want a personal referral from Polo & Tweed, then get in touch with us, and we’d be delighted to make a personal introduction.