Successfully managing payroll can be a complex and arduous process fraught with liabilities. First of all, you need the resources in-house to take on the tasks and then you must be sure you are doing it all correctly. While it's possible to manage payroll internally when starting out, doing so can present several challenges for small and medium-sized businesses as they expand.

Payroll is time-consuming and even small payroll tasks can be extremely labour-intensive. Luckily, there are other options that can make payroll simple. Tasks such as calculating wages can take time away from other strategic priorities.

More and more businesses are tapping into the many benefits of an outsourced payroll solution. But how could this benefit you and your business?

Read on to discover the many payroll outsourcing benefits and how they can help your business boost productivity and efficiency.

What are payroll services?

Simply put, payroll services are a complete payroll management solution that streamlines your payroll processes and manages every aspect of your payroll. From verifying employee payroll information to calculating wages and payroll taxes.

As a business owner, it’s your responsibility to ensure that everyone who works for you is paid the correct amount and that this payment is received on time.

While this seems relatively simple on the surface, it involves meticulous record-keeping. Getting it right requires extreme attention to detail and as a result, many businesses choose to outsource their payroll requirements to a third-party organisation.

Many business owners take on the task of payroll management as they think it is more cost-effective in-house but hiring a third party and outsourcing it could save you money in the long run.

You can find more information about managed payroll services here.

What are the payroll outsourcing benefits?

Saving time

One of the most obvious benefits of outsourcing payroll services is saving time. When you outsource payroll services, you free up valuable time in-house that can be spent elsewhere.

 A managed payroll solution means that an expert takes on the responsibility of tax calculations, calculating wages, bonuses and employee benefits leaving you with more time to attend to core business services.

Why spend so much time on repetitive admin when you can leave it in the hands of the experts?

Documentation storage

When you outsource your payroll processes, you can take advantage of a comprehensive record-keeping system that ensures all of the employee data is securely stored.

Security

One of the key benefits of a managed payroll service is that it gives you the advantage of maximum data security and confidentiality. Security is key when handling sensitive employee data and choosing to outsource your payroll services means choosing a provider that offers robust security measures.

After all, mitigating the risk of data breaches is a key priority for small to medium-sized businesses. The cost of a payroll service is worth its weight in gold as it can save you from any potential fines and penalties.

Onboarding and offboarding staff seamlessly

As your business grows and evolves your payroll needs will change over time. When you outsource your payroll management to a third party, you get the added benefit of flexibility that accommodates your business as it develops.

Your payroll system will need to adapt to a fluctuating workforce, whether that be because of business expansion, opening a new location or hiring new staff. An outsourced payroll service is adaptable and will evolve to meet your needs without taking up any internal resources.

Dealing with pay adjustments

Pay adjustments are a crucial factor when managing payroll. Outsourcing payroll to a third party ensures that these adjustments are handled accurately and efficiently.

An employee’s payment may need to be adjusted to reflect a bonus, commission, overtime or absence and leaving your payroll in expert hands means errors are minimised. Payroll services usually have the latest technology meaning that these pay adjustments are implemented and updated on time. Ensuring employees receive the correct payment without delay.

Another crucial aspect is that accurate records of pay adjustments are kept and a trusted payroll service will offer a robust record-keeping system for exactly this purpose.

Management of legal requirements

Another advantage of outsourcing payroll is getting total peace of mind. As a business, you are liable for any discrepancies but when you choose a trusted partner to outsource your payroll to, you can rest assured that everything is calculated correctly. From national insurance contributions to tax codes, you can leave all of this in expert hands.

Third-party payroll experts stay up to date with the latest laws and therefore ensure that pay adjustments are processed in compliance with relevant regulations. This helps you as a business avoid any potential penalties or legal issues related to payroll compliance.

Discover BrightHR’s managed payroll service

Is your current payroll system struggling to adapt to your ever-evolving company? Is it taking valuable time away from your staff that could be better spent elsewhere? Or perhaps you don’t have one at all—outsourcing to a trusted third-party partner will offer a wide range of benefits to your business.

By outsourcing your payroll processes and streamlining your system, you're not just saving time, you're investing in the future efficiency and success of your business. With BrightHR's Managed Payroll service, you can trust that your payroll needs are in capable hands. Get in touch to see how we can help.