Payroll is essential for the economy. It is also a fundamental element for business growth and supporting employees.
As a profession, it is not for the faint-hearted. Payroll is fast-paced and constantly changing.
Payroll outsourcing adds value to your business and keeps your employees safe, a roof over their heads and the ability to feed their families.
Your payroll manages the hiring and firing, potential salary increases, benefits and bonus packages of your staff to help keep your business running smoothly.
Compliance
Payroll compliance can be a minefield.
For many small businesses, complying with employment legislation can be the biggest challenge. It’s not simply about processing people’s pay in an accurate and timely manner.
You want your organisation to remain compliant and not fall foul of the law. You need to look after personal data correctly and in line with GDPR. National insurance and pension contributions have to be paid to the appropriate parties. You must also meet reporting requirements to HM Revenue and Customs (HMRC).
Do you process payroll across different countries? You need to be aware of local taxation rules.
Therefore having the correct systems and processes in place will help reduce potential risks and avoid future headaches. Ultimately saving you time and money.
Sickness rates
Sickness absence can provide employers with direct costs.
According to Helix Law, UK organisations can lose £550+ per employee each year to paid sick leave. It may have financial implications on your daily operations and stretch resources across other departments.
Your employees are entitled to Statutory Sick Pay (SSP), currently £99.35 a week for 28 weeks. Some organisations offer a more generous company sick pay scheme that goes above and beyond SSP and commonly increases with service.
Payroll and HR often collaborate to monitor sick leave and identify recurring problems around sick leave. By implementing correct policies, you can have better control and understanding of people management procedures.
Benefits analysis
Providing a benefits package can be an additional way to offer your employees a non-wage supplement further to their salary. If planned strategically, a benefits package can add real value to your business.
You have the option to decide what types of benefits package you offer and, it can vary for individual employees based on their contractual needs. There are two main categories: financial or health and well-being so consider how these align with your company values.
The impact of implementing a benefits strategy must be considered, such as the financial implications on your business and whether including short-term perks could have a damaging effect in the future.
As some benefits are taxable, you should seek advice from your accountant.
Compensation trends
Do you want your employees to be engaged in your business and work in a happy environment?
Reflecting on the benefits packages you offer is crucial for retaining top talent and being an attractive prospect for new staff.
Attractive benefits can help you have a dedicated team. These perks can range from flexible working, free breakfasts or beverages during the day, company away days and volunteering days.
Setting targets and monitoring employee performance can help you manage their effectiveness in your business. For example, reward and recognition for hard work will benefit overall performance and feed your business growth strategy.
However, for many small businesses, resources can be too stretched for an in-house payroll team. With payroll involved in so many critical areas of your company, it is worthwhile considering outsourcing these tasks to an expert. Finding a trusted provider for payroll outsourcing adds value to your business and helps you with any concerns.
By having assistance with your accounting support matters, you can spend more time focusing on your business growth areas. Contact us today to find out how we can help you.
