What to consider when outsourcing payroll

Payroll service providers can help with calculating pay and deductions, BACS payments and ensuring legislative obligations are met. Outsourced payroll solutions need to provide a good fit with employee numbers, locations served, and in-house expertise.

Set up costs

Normally based on a price per employee basis. It takes time for a new provider to set up your company on their system and it may be necessary to process a parallel run to ensure everything is ok.

Payslips

Most companies have switched to online Employee tools, allowing staff to access payslips electronically, perfect for Employees based in multiple locations. It’s worth considering a digital service for cost-saving and sustainability reasons.

Auto enrolment

This can be another cost that may not be included in the initial processing fee. An additional auto-enrolment element could cost a few pounds per employee.

BACS Payments

Making manual salary payments is time-consuming; when outsourcing payroll, consider whether your provider can process BACS payments for you.

Outsourcing payroll may sound expensive if you haven’t done it before but the risk of keeping it in house and getting it wrong will often outweigh the price of outsourcing.