How does payroll outsourcing usually work in the UK?
If you own or work for a company in the UK and are considering payroll outsourcing, you will want to know how it works before you commit.
Payroll outsourcing companies take care of everything -- If your accounting staff normally manages your payroll, they will already know what a nightmare it can be.
In order to be able to cut paychecks correctly, your company needs to not only have the correct personal information for each employee, you also need to pay on time and correctly.
If meeting deadlines has been a struggle in the past, a payroll outsourcing service can handle them perfectly for you. All your company needs to do is furnish them with the complete income and tax information for each employee.
Payments to HMRC and pension companies -- There are also payments to HMRC your company has to pay monthly or quarterly for every staff member employed. You also need to make sure your employees' pension payments are also paid into the pension fund on time.
Again, while this can sometimes be a struggle for your accounting department, a payroll outsourcing service will handle it without any problems.
Keeping up-to-date with legislation -- HMRC does change legislation when it comes to employee wages.
Your company should be up-to-date on every piece of tax legislation passed, as this impacts how you employ and pay staff.