Outsourcing ones’ payroll is always a difficult decision. There’re so many considerations to keep in mind when undergoing the selection of a payroll service provider. We’ve identified 4 easy steps, to answer the popular question of “How does Outsourced Payroll Work?”. See our steps below:
- Step 1: Identify the type of payroll provider you require
As a company you must decide on the type of payroll provider required. For example, payroll only, payroll and HR, a big name, an accountant, a multi service solution covering HR, accountancy, tax advice as well as auditing.
- Step 2: Research multiple payroll companies
The selection process previously undertaken would’ve involved research. Identifying several payroll companies that match your needs, will help you make a more informed decision. Therefore, we recommend sourcing at least 6 different providers. After that, compare the fees, service levels and most importantly, take into consideration the provider that best matches your needs. During the process, you must ask to view references, financials, their business profile (for example, a company house search), gain an insight into their client base, look at staff turnover, as well as view their contingency and disaster recovery arrangement.
- Step 3: Sign a payroll contract
Once you’ve selected a provider, you’d have to sign a payroll contract which would lay out the terms and conditions. Pay close attention to termination clauses, service levels (for instance, clauses covering poor service/relationship breakdown) as well as indemnities in the event of systems failures, fires, etc. Once the contract has been agreed, it would be the providers turn to audit your company. They would seek to identify and satisfy their money laundering requirements. Documents such as copies of passports, utility bills, driving licences, bank statements will be required from all directors.
- Step 4: Set up payroll process
Subject to the money laundering checks being successful, your new provider would then look to set-up a payroll process which is likely to consist of multiple stages.
In summary, the payroll process requires you to send confidential information to the provider in order to start the process. Ideally, a secure, GDPR compliant, portal should be used to transfer confidential information from the client to the provider.
In conclusion, “How does Outsourced Payroll Work?” is a popular question asked by business decision makers, and rightfully so. The above steps will help you understand the process in order to successfully outsource your payroll to a trusted provider. Contact us for more information.