What is Managed Payroll?
At KashFlow, we recently launched Managed Payroll – which is our name for an outsourced payroll service. In this blog, we’ll take a look at what outsourcing actually is and why it could be a massive benefit for your business.
What is outsourcing?
Outsourcing is defined as “obtaining goods or services by contract from an outside supplier”. In the context of most businesses, think of hiring an accountant or asking an agency to help with your marketing – you’re asking someone external to lend their expertise and help you with an important part of your business. Outsourced payroll is the same idea.
When you outsource your payroll to KashFlow, we act as your payroll department and do all the work for you. That means processing your payment data, submitting employee data and providing the payslips to employees. Because our team are all payroll expertise, we can make sure you’re staying compliant with all the latest legislation and getting everything filed on time.
Why outsource your payroll?
Running a payroll is a fundamental part of being an employer. Unfortunately, it’s a time-consuming task and there’s a high risk of error if you’re not sure what you’re doing.
If you’re running a payroll every month, every week, or a mixture of both then you’ve got to calculate wages, deduct tax and National Insurance, ensure everything is correctly filed on time and more on each occasion.
This is time you could be spending on marketing, bookkeeping or financial forecasting, training, networking, or even taking a well-earned break.
If you wanted to launch a successful ad campaign and guarantee some big results, you’d probably ask a marketing expert to help you out. Managed Payroll is exactly that for your payroll.
Outsourcing simply means that you’re getting your payroll completed accurately and on-time every month, without having to do it yourself. You still retain full control of your money, your employees and your wages; you’re just not having to do any of the admin.
Key benefits of outsourcing
- Free up time to make money and keep staff engaged
- Combine and reduce your outgoing payroll costs
- No need to handle the admin every payroll run
- No need to study payroll legislation
- No stress at the end of every month (or week)
- Peace of mind from knowing your payroll is accurate and compliant
- Get your payroll run accurately and on-time, every time
Avoiding errors in your Payroll
Legislation in payroll is frequently updated and changed, making it difficult to stay up to date and avoid penalties for accidental errors. One area that can prove particularly confusing is Automatic Enrolment and workplace pension schemes.
While The Pensions Regulator is fair, there’s no real excuse in not knowing or fulfilling your responsibilities when it comes to employees. And if you aren’t complying with your payroll obligations, then The Pensions Regulator can issue a £400 fixed penalty and even a daily escalating penalty that can range from £50 to £10,000.
Beyond the financial concern, there’s also the time it takes to double check your work, troubleshoot your system to find out where the error came from, rectify mistakes, liaise with The Pensions Regulator or HMRC, notify staff and resubmit your information – all of which can be time spent by someone else, or avoided altogether if you outsource to a payroll expert.
What does KashFlow offer?
If you choose KashFlow Managed Payroll, you’ll get:
- Great results, with a market-leading average payroll accuracy of 99.9%
- A dedicated payroll account manager with CIPP training (or working towards it)
- Confidential info kept safe as per the Data Protection Act
- Bespoke reporting to suit your business
- A service that’s close to HMRC and The Pensions Regulator to keep you compliant
How does it work?
If you choose to outsource your payroll to KashFlow, then there’s only 3 things you have to do.
- Send us your payroll information in an agreed format
- Approve the Verification Report(s) we send to you
- Contact us with any queries or amends you may have.
You’ll still get your employees paid on time and HMRC will still get all the right forms at the right time, because we’ll do the following for you:
- Upload tax code changes directly from HMRC you don’t even need to tell us.
- Load your payroll data including starters, leavers, salaries, hours worked and payments and deductions
- Check the payroll output against your figures to ensure it is correct and produce a verification report for sign off
- Once the figures are signed off, we will make BACS payments, produce payslips and reports and send you agreed output files
- Complete monthly reconciliation so accounts are correct at the end of every month
If you’re interested in learning more about Managed Payroll, then take a look at our scalable option. It doesn’t matter how many members of staff you have (even 1 or 2), it’s designed to work and continue to work for you as your business grows or changes shape.
Take a look here and fill in the contact form for a free quote and no-obligations walk through of how Managed Payroll would work in your business.