
Pay As You Earn (PAYE), is the most common payroll system for permanent employees. PAYE automatically deduct income tax, national insurance, and student loan payments before the employee is paid their salary. However, payroll can be time-consuming and tiring and many businesses now opt for a payroll company to outsource their PAYE needs – providing businesses with peace of mind. But what are the positives of outsourcing your PAYE?
Benefits Of Outsourcing Your PAYE Payroll
There are many benefits to why you should consider outsourcing your PAYE payroll to a payroll company, from saving time to it being cost-effective. But why should you? How does it affect you as a business? Here is all you need to know about why you should.Cost-Effective
As a business owner, you are always looking for a way to lower costs within your business. But have you thought of how much you are spending just to get your payroll done? Also, have you thought about the amount of money you are spending on software and training?On average, payroll manager salaries are £30,000 per annum and payroll software is over £1,000. If you were to outsource your payroll this money would be in your pocket and could be used for other aspects for your business.Saving Time
Looking for any new staff is very time-consuming, and that doesn’t change for payroll staff. Depending on their skills, you will need to put in the time and effort to get them up to speed on how to use the payroll software and how to do the company payroll. But what if, you or the person decides it’s not the right job fit for them, and you have to let them go or fire them? All of that time you spent with them, you won’t be able to get back.By outsourcing your PAYE payroll, you don’t have to worry about putting in your own time into training someone, everyone within the payroll company would be experts within the field.Aside from spending time training and looking for someone, it can also save you from trying to research all of the different legislations that can affect your payroll. For example, the IR35 change in April 2020.By hiring a payroll company, it will mean you don’t have to learn about anything, they will do it for you.Reduces Errors
If you decide to do your payroll, and payroll isn’t your expertise, it could mean it can be affected by human error. Human error can be something as inputting the incorrect amount or tax-code into the software.Things that could affect human error are:- not understanding how to use the payroll software
- leaving payroll to the last minute
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