06 Aug 2020 7:44 AM

COVID-19 has changed the way businesses and their employees operate.

Business owners are being forced to think about restructuring and leaner business models. If you have an in-house payroll department you may be thinking about outsourcing your payroll either as part of your restructuring or because of staff changes. Or perhaps it was a task on your to do list for a while and you now want to do something about it.

Here are five great reasons why you should consider outsourcing your payroll:

  • Knowledge and experience

A good payroll provider will have experienced people who are up to date with payroll related tax as well as the latest government legislation. For more complicated tax matters, they will have access to tax experts in-house who would be able to assist.

  • Reliability

A small in-house team can be affected by holiday and sickness and this can cause delays. Outsourcing your payroll means your payroll will be completed on time as agreed with your provider, be it weekly, monthly or annually.

  • Cost

Some businesses may shrink as a direct impact of COVID-19 and may not be able to justify the cost of a full time payroll person. Outsourcing can be very cost efficient for businesses when factoring in the software costs, time costs, training, keeping up with the legislation etc – all headaches that a business has no time to worry about.

  • Scalability and flexibility

If you are a business employing 5 people, but are projecting this to go to say, 500 people, an outsourced payroll provider will be able to scale up and provide the services you require until such point you decide to employ an in-house payroll dedicated person.

  • Compliance

Over the last few years, payroll has become increasingly complex with RTI, pensions and most recently furlough. A payroll provider will help keep you compliant so you can focus on growing your business.


If you are concerned about moving your payroll to a new provider and aren’t sure about what you need to ask please read our article 'five questions to ask when moving to a new payroll provider.'

If you would like to discuss your payroll requirements please do get in touch for a confidential chat