Payroll management is both complex and time-consuming, which is why many managers outsource to a company specialising in HR and payroll solutions, such as NorthgateArinso.
There are many benefits to outsourcing the company payroll, not least the financial aspect. A dedicated payroll department is a big drain on the finances of any business and expecting staff to undertake payroll management on top of their other duties simply impinges on their productivity. Factor in the cost of things like software, training and the printing and distribution of payslips, and it is easy to see that outsourcing, far from being a financial burden, can actually increase profits and reduce expenditure.
Payroll management is reliant on consistency, accuracy and speed, but this is difficult if it is outside the area of expertise of the person doing the work. An outsourced provider will offer a consistently high quality service, which won’t vary depending on sickness, holidays or altering shift patterns. As they are familiar with the technology and processes used, they can work to maximum speed and efficiency, using the very latest technology and software.
Sadly, company payrolls are open to abuse by workers; and managers are rarely in a position to keep a close eye on things. A payroll bureau will have anti-fraud software to spot false wage claims, exaggerated expenses, ‘ghost employees’ and other fraudulent payroll activity. Clients will then be alerted so they can take action.
Delayed salary payments, payroll errors and mishandled paperwork are all signs that a company is struggling with its in-house system. Outsourcing avoids all these problems, and in the event that something does go wrong, it is the service provider, rather than a harassed member of staff, who is held accountable.
Payroll management means juggling PAYE, tax credits, Social Insurance, benefits-in-kind and various other things. Payroll outsourcing takes the weight of all these pressures off the shoulders of the business owner, driving productivity and reducing costs.