One of the most complicated areas for a growing business of any kind is payroll. Managing staff working hours and ensuring they are paid correctly is at the heart of good business management but can be a drain on time and resources. Many businesses opt for payroll software to help and this can make things easier but there’s huge difference between software and full payroll services.
What is payroll software?
Payroll software can be a cost-effective way to get started with payroll. Much of the software is now online so you can access it anywhere.
Unfortunately, you still need to be your own payroll department. Someone still has to collect the information and input it into the software. This can be a time-intensive task, especially when this isn’t your speciality. And you are responsible for areas such as taxes and national insurance so this means being up to date at all times on the latest regulations and best practices. Also, you have to be aware of all deadlines and make sure you meet them.
What are payroll services?
Payroll services are where you use an external company to handle the whole of the payroll department for you. Trace Payroll is an example of a company offering dedicated payroll services for businesses in any industry.
With payroll services, the company will collect all payroll information, make amendments and ensure everyone has an accurate tax code. They will laser print payslips and offer the business a range of reports to help understand payroll outgoings and working practices. All payments will automatically be made by BACS to ensure staff are paid on time.
In addition, payroll services will take over liaising with HMRC on matters around tax and national insurance. This means you don’t need to be concerned with knowing the latest rules regulations or worrying about deadlines. Trace will prepare and submit P45s, P60s and RTI files to the government as well as being the designated contact for any queries regarding these matters.
Payroll services do cost more than the price of accessing payroll software but when you factor in time spent using the software, release from responsibility around tax and other legal matters and the ability to set and forget the service, many businesses find this cost worthwhile.
The best option?
While what is best for your business is always what you decide, many businesses are now opting for payroll services for the benefits that it brings them. Contact us using the details below to find out more about our services.