Outsourced Payroll Services

The Benefits of Outsourcing Your Payroll Function

The 4th – 8th September 2023 is National Payroll Week. So, it's an opportune time to highlight some of the potential benefits of outsourcing your payroll function to Leonherman.

Payroll isn’t the most glamorous business function, but it’s certainly one of the most important.

When your payroll function works efficiently, you hardly notice it’s there. But when something goes wrong, the potential costs to the business can be great and employee frustrations are inevitable.

Many business owners choose to manage their payroll themselves, particularly in the early days. But as the business grows, managing the payroll can often become quite onerous and time-consuming, when all you really want to do is to focus on what matters most – growing your business and improving your products and services.

That’s why many of our clients choose to outsource their payroll to Leonherman. Above all, we make sure that our clients’ employees are paid on time, accurately, correctly, and in line with legislation.

This week, 4th – 8th September 2023, is National Payroll Week. It was set up by the Chartered Institute of Payroll Professionals (CIPP) in 1998 to celebrate the payroll profession and to give those working in payroll the recognition they deserve.

So, it seems an opportune time to highlight some of the potential benefits of outsourcing your payroll to Leonherman…

How business owners can benefit by outsourcing their payroll

Outsourced Payroll

1. Time to focus on growing your business: Processing a payroll can be time-consuming and if we’re honest, a bit tedious! Outsourcing your payroll frees up your time to work ‘on’ your business, not just ‘in’ your business and enables you to spend more time on what really matters: strategic decision making, improving your service, and growing your business.

2. Cost savings: Outsourcing your payroll can be much more cost-effective than recruiting a specialist in-house team. You can also save on software costs, training, and other payroll overheads that you would otherwise have to incur.

3. Less administration: Managing all the details of payroll processing – along with any legislative changes – can be time consuming and onerous. Outsourcing your payroll can reduce this administrative burden on you, your HR and admin teams.

4. Reduce your risk: Staying on top of ever-changing laws and regulations can be overwhelming. If you make an error on your payroll, you’re at risk of a financial penalty and a group of dissatisfied employees. Outsourcing your payroll can alleviate some of your compliance concerns and also reduce the risk of any costly penalties.

5. Readily available experts: Our payroll team are experts in their field. We stay up-to-date with the latest best-practice and regulations, and even though we’re not based in your offices, we’re on hand when you need us.

6. Peace of mind: Ensuring that employees are paid correctly can be quite stressful and mistakes can have a significant impact. We can significantly reduce this stress for you and give you the peace of mind that an expert is managing this process for you.

7. Scalable: As your business grows (or contracts), your payroll needs will change. By outsourcing your payroll, you can scale without having to restructure your in-house team.

8. Continuity of service: If you have one employee managing your payroll, you have a single point of failure if they are absent or leave the business. And not paying your employees on time is not an option if your payroll team is absent. By outsourcing your payroll, you can rest assured that you will have continuity of service and employees will be paid on time.

9. Budget to reinvest in growth: By outsourcing your payroll, you can reinvest any excess budget that you would have spent on paying for an internal payroll function into other key areas of the business.

How can Leonherman’s payroll team help you?

Above all, we make sure that our clients’ employees are paid on time, correctly, accurately, and in line with legislation.

Our payroll team can also help you by…

  • Applying the right tax codes (but we cannot change them unless told to by HMRC)
  • Ensuring that the correct amount of tax is taken
  • Ensuring that the right amount of National Insurance is taken
  • Managing sickness pay
  • Parental leave (such as maternity and paternity)
  • Managing payroll queries
  • Processing benefits
  • Providing employee payslips
  • Handling and reporting of deductions to HMRC
  • Pension processing and reporting
  • Keeping up to date with the latest legislation, case law and best practice

If you’d like to find out more about our payroll services, please get in touch with us today by emailing partners@leonherman.co.uk or call us on 0161 249 5040.

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