The payroll function is at the heart of organisations yet all too often it is taken for granted. As payroll is one of the largest costs to any business, it requires a thorough understanding of the legislative and calculation processes. However, the resources required bring no added value to the business according to Anne Reilly, Director of Paycheck Plus.
Many companies mistakenly believe that processing their payroll in-house is the most cost effective method of fulfilling this repetitive function. In fact, the cost of processing payroll in-house may be up to five times more expensive than outsourcing when you take into consideration the real cost of retaining qualified staff who have been competently trained in their profession.
Every member of the payroll team at Paycheck Plus is fully qualified in Payroll calculations and employment law. They utilise their expertise by checking every payroll for maximum tax efficiencies resulting in average savings of 7% of annual payroll spend for their clients. They translates to approximately €2,000 per employee on a salary of €30,000. Companies processing in-house think only of the direct software costs and gross salary payable when comparing options, but they should consider the less obvious costs of training, holiday and other leave, employers PRSI, hardware costs, consumables, data storage and opportunity costs. Additionally errors in payroll can cost a company dearly through incorrect calculation of the various taxes and levies or contravention of legislation.
As the benefits of outsourcing payroll gain momentum in Ireland, engaging the right outsource provider is crucial. Companies should discuss their payroll with a few providers to ensure that they feel comfortable working together. At Paycheck Plus we believe that the personal and trusting relationships we have with each of our clients is critical. It enables us to work almost like a department within their company rather than an external firm. We share relevant and up to date information tailored for our clients needs to assist them in operating and planning their payroll costs. Our website at www.paycheckplus.ie provides many useful resources for employers and their employees as well as leaflets and forms for convenience. Our clients say it really helps in Making Payroll Easy for their business and for their employees.
When choosing an outsource provider, ensure that you are confident with the service offering and the level of expertise to handle the various changes in employee and business circumstances. Compliance and accuracy requires professional and on-going training in the various aspects of payroll calculations and legislative regulations. Paycheck Plus spends 15% of all working hours on continuous training of their team so that their clients can benefit from the most up to date information available. Their back-up and contingency plans are designed to safeguard continuity of service and protection of critical personal data. It’s no coincidence that this company has twice been awarded Payroll Outsource Provider of the Year for the Small and Medium Sector by the Irish Payroll Association.
Outsourcing this repetitive back-office task to a reputable provider ensures the client receives the optimum service of qualified and experienced payroll professionals as they need it while retaining control of their payroll outputs. Given the benefits of payroll outsourcing it stands out as not only a viable option, but for many cost conscious businesses, the most sensible option available.
Business Plus March 2010.