Why businesses outsource their payroll

Payroll is essential to maintaining a happy and engaged workforce – if people don’t get paid, they don’t work.

However, many businesses lack the resources and internal expertise to effectively manage payroll, not to mention that there are more than 170 pieces of UK legislation affecting payroll to keep track of.

Often, these four pain points tend to tip the scales for many businesses when deciding whether they should outsource:

Payroll legislation keeps moving: rates, thresholds, statutory payments and reporting duties change constantly, and keeping up is a job in itself.

Payroll consumes your week: you spend days every month you can’t get back, checking, chasing and re-keying, with no real
audit trail.

Payroll lives in one person’s head: when your payroll person is on holiday, away due to sickness or leaves the business, the whole process comes to a stop.

Payroll errors keep slipping through: wrong tax codes, missed deductions and late submissions pile up every month, eroding employee trust.

“Payroll is time-consuming and complicated, and outsourcing seemed like the obvious solution. From different salary rates to overtime to pensions, not to mention year-end, we wanted a one-stop shop that would take care of all of it for us, ensuring we remained compliant and that everybody was paid on time.”

Nikki Howe, Practice Manager,
Grovehurst Surgery