Payroll Outsourcing definition
Businesses may hire an external firm to handle all payroll functions to save time and money, reducing the need for in-house trained payroll staff, purchasing and maintaining appropriate software packages, and staying compliant with updated PAYE legislation. Whether payroll outsourcing is cost-effective depends on the complexity of the organisation’s payroll requirements.
The service level of payroll outsourcing varies – some suppliers provide a barebones service and others will also deal with everything involved, such as liaising with HMRC and maintaining full compliance without the main organisation ever having to deal with payroll.