During the inception of a firm or company, the decision-makers are confused about whether to manage payroll in-house or outsource. This is a decision that shouldn’t be taken lightly as the process is extremely vital to employers and employees. The importance of the payroll function coupled with the requirement of confidentiality has encouraged an in-house approach to payroll management.
However, during the past decade, there has been a shift in the entire payroll management process as companies have started adopting an external payroll service provider. There has been a significant hike from 10% to 35% between 2008 and 2019. It is the responsibility of the payroll bureau, outsourced payroll service provider, or payroll department to manage and calculate the following:-
What is Payroll Function Responsible for?
Payroll management comprises a set of processes with in-depth knowledge of the PAYE tax system, a high degree of accuracy, and good organizational and communication skills.
- Net pay
- Distribution of payslips to employees, either physically or electronically
- PAYE calculations, EPS, and FPS submissions
- Payments to HMRC
- Identification of payments that are subject to National Insurance and Income Tax deductions
- Statutory payments such as Statutory Sick Pay (SSP) and Statutory Maternity Pay (SMP)
- Administration of other deductions, such as student loan payments
- The accurate and timely payment of all employees
- Facilitation of the automatic enrolment of the employee into a pension scheme
In smaller companies, the director often assumes responsibility for payroll management and manages everything in-house. In-house payroll management is assumed to be more cost-effective when compared to the fees charged by the outsourced payroll service provider. However, the reality is absolutely different because the cost associated with managing, recruiting, and training the payroll staff, with the need for regular investment in the payroll software turns out to be more expensive.
The significance of outsourcing your company’s payroll services is the peace of mind that comes with the knowledge of knowing that all the critical business functions are being handled professionally and managed appropriately. One of the key factors that drive organizations to outsource payroll is the ability to reduce operating costs with other benefits like:
- Improved Data Security and Confidentiality
- Integration and Streamlining of Operations with Improved Analytics
Outsourcing your company’s payroll allows management to make better, more informed decisions, which in turn can help to improve and streamline operations. If you have decided to outsource payroll, then look no further. Osservi understands that payroll is a complex and time-consuming operation that requires a strict level of confidentiality and accuracy.
Osservi is an Ireland-based Payroll Accounting Service Provider that offers a complete set of customized payroll solutions for your company that facilitates a personalized and professional approach to cover an entire range of payroll services for small, medium, and enterprise-level companies.
Outsourcing your payroll duties to a company like Osservi is not only easy but is also cost-effective. You can save a lot of your company’s funds while having peace of mind that your payroll is being processed correctly with the right payroll service provider.
Our team at Osservi consists of in-house qualified and trained professionals with an extensive network and expert support who will give you the benefits of automated monthly payroll cost booking, payroll account reconciliation, accounting-related entries, and actuarial evaluation. For any inquiries related to payroll accounting feel free to contact us at +353 1800 938 796 or mail us at firstname.lastname@example.org
We act as the catalyst that helps you make the best decisions for your employees as our team is the best at implementing time-testing methodologies.