Outsource your payroll

Considerations when outsourcing your payroll

There are many providers that can offer you an outsourced payroll service. Most accountants offer a payroll service. Some may even run a specific department that deals just with this.

It might make business sense to ask your accountant if they can provide you with payroll services. They will already be familiar with your business and might offer you a competitive rate as part of a package of services. Alternatively, you could outsource your payroll to a payroll agency.

Either way, you can normally specify the level of involvement you want from them. For example, you may choose to completely outsource your payroll or you may simply wish them to provide you with your monthly payslips.

However, before handing over your payroll operations, you need to consider:

• whether the service provider can tailor a suitable package
• whether they are experienced with your type and size of business
• whether they can supply monthly payslips, and provide monthly and annual returns
• the charge for setting up the payroll system
• the charge for administering the system
• whether the fees include making all the types of deductions
• whether they charge any additional fees
• how easily scalable their service is (eg if you take on another employee)
• what software they use, whether it is HM Revenue & Customs accredited, and if it is compatible with your own

Subjects covered in this guide

• Introduction
• Considerations when outsourcing your payroll
• Payroll supplier checklist
  

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