Payroll outsourcing services means hiring a third-party company to manage your payroll needs. This includes ensuring your employees get their paychecks on time while complying with legal, tax, and accounting requirements. It also helps you follow HMRC and Pension Regulator guidelines.

Outsourcing payroll to SAS KPO Services provides skilled assistance, making sure your employees are paid correctly and on time. Originally, companies only outsourced low-skill tasks, but now, even critical functions like payroll are being trusted by experts.

Allowing SAS to manage your payroll means routine tasks are managed efficiently, following established guidelines, and you still maintain control over decision-making. This way, you can focus on your core business while we take care of the payroll details.

How Outsourcing Payroll Services can benefit your business?

Managing payroll can be challenging and time-consuming, particularly for employers without the necessary administrative resources or expertise. Here’s how payroll outsourcing services with us can benefit your business:

Save Time: By outsourcing payroll, you free up valuable time to focus on core business activities like product development, customer service, and sales. Additionally, with payroll off your plate, you can dedicate more effort to growing your business.

Minimise Payroll Errors: SAS uses advanced technology to automate many labor-intensive payroll processes. By significantly reducing the risk of errors, this ensures accurate and timely payment for your employees by eliminating manual calculations and data entry.

Improve Security: Additionally, our state-of-the-art technology includes redundant backups and multiple server locations, providing top-notch security for your confidential payroll data. Trust us to protect your sensitive information from data breaks and other security threats.

Maintain Compliance: Staying compliant with ever-changing government regulations can be challenging. We keep up to date with the latest rules and regulations, managing all necessary paperwork to ensure your business remains compliant and avoiding costly fines and penalties.

Reduce Costs: Although outsourcing payroll incurs fees, the significant cost savings from avoiding fines, penalties, and errors justify the investment. Additionally, we provide a cost-effective solution that can save your business money overall.

Choosing us for your payroll needs means you get professional, dependable, and secure payroll management, so, allowing you to focus on what truly matters—growing your business.

Average costs of Payroll outsourcing services

Outsourcing payroll can be a smart move for many businesses, and one of the most common ways to do this is through a ‘fully managed service.’ This means that an external provider manages your entire payroll function, dealing with HMRC on your behalf and addressing any payroll-related queries from your staff. However, how much does this service typically cost per employee? Let’s break it down:

Monthly Payroll Service: On average, you can expect to pay between £2 and £2.5 per pay slip per month for a fully managed payroll service at SAS KPO Services. This fee encompasses processing payroll basics and ensuring accurate and timely payment to your employees.

Setup Fees: When you bring new employees on board, there’s usually an additional setup cost of about £2 per new employee per month. This fee covers the initial work required to integrate new staff into the payroll system.

Pension Plan Auto-Enrolment: If you offer a pension plan to your employees, there’s an extra cost for auto-enrolment services, typically ranging from £1.50 to £2 per employee each month. This service ensures that the pension scheme legally requires your employees to enroll.

HR Integration: For businesses that need more comprehensive services, such as integrating payroll with HR functions, the cost can be higher. HR integration services can range from £10 to £25 per employee each month. This additional fee provides more seamless and efficient management of both payroll and HR tasks.

As you can see, the average cost of outsourcing payroll depends heavily on the number of employees you have. Smaller businesses might pay the higher end of the scale, around £4-£6 per payslip per month. However, larger companies with more employees can often negotiate lower rates, potentially reducing the cost to as little as £3.50 per employee.

So, outsourcing your payroll can provide significant benefits, including saving time, reducing errors, improving security, and ensuring compliance with regulations. By understanding the costs involved, you can make an informed decision about whether payroll outsourcing is the right choice for your business.

How to choose the right Outsourcing payroll processing?

Accessibility: One key factor to consider when choosing a payroll outsourcing service is accessibility. Ask yourself if there is a readily available support line when you need assistance. Can you reach someone by phone or email at any time, even during odd hours or weekends? If you are in a different time zone, will they still be willing to communicate during your off-hours? These are important questions to answer before selecting a payroll service provider.

Accuracy: Accuracy is crucial in payroll outsourcing. Mistakes in payroll can have serious results for your business and its reputation. Ensure the provider you choose has a strong record of accuracy. Request references from their current or past clients to understand how they maintain payroll accuracy.

Security: Security is another important aspect to consider. Ensure your payroll provider has strong security measures in place. Find out how they store and protect your data and ask for references from other clients who have used their services. Make sure the provider is fully compliant with all relevant regulations and has comprehensive policies to secure your sensitive employee data.

Compliance: Compliance with local and international regulations is critical in payroll processing. Especially for recruitment agencies, which have unique compliance needs, ensure that the service provider can support these requirements. If you have remote employees or subcontractors outside your country, verify that the provider can manage these complexities.

Reputation: The reputation of a payroll outsourcing company is important. Partnering with a reputable company ensures they have your best interests at heart, protecting your business and investments. Conversely, less reputable companies might prioritise their interests over yours, negatively affecting your agency’s profits and productivity.

Scope of Service: Understand what services the payroll provider can offer. They should deliver customised payroll solutions based on your specific needs. Recruitment agencies need access to quality data, so don’t compromise on quality for cost. Ensure the provider offers fast and accurate processing solutions.

Outcome: As an agency owner, your focus should be on growing your business, attracting new talent, and planning workforce expansion. Outsourcing your payroll functions to a specialised firm can help manage these tasks efficiently. Trust is crucial with any payroll outsourcing provider since they manage sensitive information about your business, such as employee data and work contracts. Your success will depend on how well you can build and maintain a strong relationship with your payroll outsourcing service provider.

What do Payroll outsourcing services include?

Payroll outsourcing services close in a range of key features to ensure accurate and efficient payroll management. These include:

1. Perfect combination with accounting systems, facilitating streamlined financial processes.
2. Complete payroll tax filing to ensure keeping with tax regulations.
3. Employee self-service portals accessible from any device, allowing employees to manage their information freely.
4. Flexible pay options such as direct deposit and pay cards, enhancing employee satisfaction.
5. Year-end processing, including the preparation of Form W-2 for tax reporting purposes.
6. Efficient handling of wage garnishments, ensuring compliance with legal requirements.
7. Customisable payroll and financial reporting to meet specific business needs.
8. Secure employee recordkeeping to maintain accurate and confidential employee data.
9. Timely new hire reporting to comply with regulatory requirements.
10. Accessible client support to address any payroll-related queries or concerns promptly.

Conclusion

Outsourcing your payroll services with SAS offers a myriad of benefits for your business. From saving time and minimising errors to improving security and ensuring compliance, our comprehensive payroll solutions are tailored to meet your specific needs. With our expertise and technology, you can rest assured that your payroll needs are managed efficiently and accurately, allowing you to focus on growing your business. Do not let payroll complexities hold you back—partner with SAS for reliable and professional payroll management. Get in touch with us today to streamline your payroll processes and unlock the full potential of your business.

This blog is written by Shivani Soni (Business developer)