"Outsourcing payroll provides a business with real benefits, particularly given that payroll spend is one of the biggest costs for most businesses. It saves time and guarantees compliance with Revenue," writes Anne Reilly,
PaycheckPlus

Why It Pays to Outsource Your Payroll

Payroll spend is one of the biggest costs for most businesses.

It is by the far the primary source of income to the Irish Exchequer, well ahead of VAT and other taxes. As a result, Revenue keeps a fine eye on the detail within payroll process.

When it comes to deciding to outsource payroll, some businesses look at the cost. Others take a more strategic approach.

They look at their business structure, profitability and ability to exploit opportunities when they come along.

In Association with

Anne Reilly of PaycheckPlus, an outsource payroll company with offices in Ireland and the UK, agrees.

"Outsourcing payroll provides a business with real benefits. Our clients are regularly surprised at the additional benefits that we here at PaycheckPlus provide."

Benefits of Outsourcing Payroll

There are two main benefits of outsourcing payroll.

1. It saves time

Managing a business is difficult with all the administration needed. Add in staff and it's a headache that most businesses share.

Outsourcing the payroll function allows small businesses to find a better use of their staff's time, focusing on activities that will either save money or bring in sales – two factors proven to create profit.

According to Reilly: "The cost of processing payroll in-house can be surprising. For example, the real cost of employing a person is up to three times their salary when you take into consideration factors such as PRSI, holiday pay, pension costs, office resources, recruitment, induction, ongoing training, employer insurance, utility costs and social events."

2. It guarantees compliance

Errors are regular with payroll taxes, due to the complex nature of PRSI, USC and individual exemptions and deductions.

Changes in every budget, many of which are in the back of the budget book, means that staying compliant costs a company – in terms of continual training and education.

Reilly adds: "Ignorance of the changing Revenue requirements is no excuse, so it pays to consider the best option for your business. One fine or penalty could prove more costly than outsourcing your entire payroll operation."

More Than Just Doing Wages

Other than the standard benefits outlined, there are additional benefits to working with a payroll outsource service firm.

It adds to employee satisfaction

One of the more surprising yet innovative benefits is the ability to assist with employee satisfaction. Anne Reilly explains: "We ask ourselves how we can make our client, this employer, the best employer to work for.

"This enables us to get to the heart of every employee's concern – how to maximise take home pay. Happy employees are productive employees."

About PaycheckPlus

PaycheckPlus, Ireland's only award-winning payroll outsource company, puts its belief in maximising employee pay into practice.

We provide workshops, online training and an employee helpline to help employees make sense of their payslips.

We've also introduced an online portal that employees can log in into and check their payslip, so that they can identify any discrepancies and see their cumulated pay and deductions.

The bottom line is that instead of thinking in terms of cost when considering outsourcing payroll, take a more strategic approach.

Undertake a cost-benefit analysis and allow that to determine your decision. Having employees are costly, but it's often the little things that make a big difference in employee satisfaction.