Payroll Outsourcing

Your guide to payroll outsourcing

Discover the benefits of outsourcing your payroll.

Why is payroll outsourcing important?

Payroll outsourcing is when a specialist company like ADP manages your payroll.It’s important to choose the right provider so they can ensure every employee is paid securely each month, as well as on time and accurately. Outsourcing payroll can minimise your business risk by keeping you compliant with ever-changing regulations, including GDPR. Your payroll will operate seamlessly, no matter how many people you employ worldwide.

Why outsource

Why outsource your payroll?

Outsourcing your payroll eliminates the cost and manual errors of in-house payroll, helping your business to avoid penalties over tax compliance. By outsourcing, you benefit from the additional skills of specialists in payroll, while avoiding the extra costs of hiring an in-house team. Quite simply, outsourcing payroll saves your company a lot of time, money and worry.

Imagine running payroll in just a few clicks — anytime, anywhere, on any device. Your taxes and retirement contributions are calculated and deducted automatically. Plus, we’ll make sure your quarterly and annual reporting are all done for you.

Outsourcing your payroll to ADP means there’s no need to:

  • Deal with administrative processes
  • Keep an in-house payroll department
  • Worry about completing reports about personnel changes
  • Set up a legal entity to run a compliant payroll.

What to ask when outsourcing payroll

When considering whether or not to outsource your payroll to a provider, make sure you ask them the following questions:

  • Their length of experience in managing payroll for clients
  • Whether they have a particular expertise, for example, large corporates, charities or small businesses
  • The number of payroll experts on their team
  • The availability of their payroll experts to answer any of your questions as they arise
  • How they anticipate maintaining your compliance obligations.

Do your research, and if you’re dissatisfied with the answers to the questions above, the right provider will be happy to help.

Free your team

Free your teams from payroll

Unburdening your HR teams from manual payroll makes their work much more rewarding. Now they can focus on strategic objectives and react in an agile manner as events arise.

It’s vital that payroll is right, but it’s becoming more complex and time-consuming. By outsourcing payroll, your HR teams can:.

  • Spend more time supporting employees
  • Develop training to retain talent
  • Focus on strategic goals for an employee’s overall performance.

Other benefits of outsourcing payroll include:

  • Cutting costs
  • Making better decisions about the cost of labour
  • Reducing manual errors.
  • Avoiding penalties for regulatory non-compliance.
When Outsource

When does your business need to outsource payroll?

You need to outsource payroll when you:

  • Need your staff to develop the workforce
  • Want to optimise HR processes and have more visible costs
  • No longer have the skills in-house to manage payroll
  • Must ensure your business is compliant and costs controlled
  • Want payroll services and expertise available at all times.

If you don’t have HR, finance or admin staff already in place, outsourcing payroll to payroll experts could be the right option. Any shape and size of businesses in all industries can benefit from outsourcing payroll. It’s especially helpful if your business:

  • Has strategic tasks that require HR, finance and admin
  • Needs payroll continuity and disaster recovery
  • Is affected by current or future regulation changes

What payroll functions can be outsourced?

If you decide to outsource your payroll to a provider, there are many functions they fulfil, including:

  • Running payroll and calculating employee pay
  • Paying funds directly or issuing cheques to staff
  • Calculating regional and local payroll taxes, and making tax withholding payments
  • Filing mandatory Government reports
  • Paying employee benefits
  • Withholding social security or pension contributions.’

If you’re interested in outsourcing your company’s payroll to a trusted provider, make sure you do your research. A professional and reputable outsourced provider will take away the complexity, time and cost of handling payroll inhouse – and the risk of penalties for not meeting compliance deadlines.

Equally, though, an unreliable provider could risk the security and confidentiality of your employee data, so always grill a potential provider about their data security and whether they use software as a matter of course. Other key questions to ask a potential payroll provider include:

  • What basic, and more advanced services do they offer
  • The number of clients and length of relationship with them
  • Whether they calculate tax withholding per employee
  • The rates for running payroll per employee
  • Expertise in helping with local tax filing
  • Guarantees about employee confidentiality.

If you decide to use ADP as your provider, you can customise the payroll services you outsource, choosing either to partially retain control of some aspects, or to opt for fully managed.

Why trust ADP

Why trust ADP with your payroll outsourcing?

When outsourcing something as crucial as payroll to a partner, you need to know you’re in safe hands.From small-business requirements to global payroll needs, at ADP we have over 70 years’ payroll experience. We also have a history of innovation. We were the first payroll company to deliver automation, move to the cloud, develop a mobile app and create an online marketplace.

Since 1949 we’ve been a trusted partner that people can count on. Our customers stay with us on average for 11 years. We now manage payroll for over 1,000,000 clients worldwide, across all industry sectors.

Both Gartner and Nelson Hall have identified us as a leader in payroll business process outsourcing services, and we are ranked #1 in in the Security Magazine's 2016 Security 500 in the Business Category.

ADP managed payroll services help you:

  • Improve payroll and human resource expertise and competences
  • Align payroll and HR with the needs of your business
  • Benefit from expert payroll and HR resources when needed
  • Improve the efficiency of your internal HR processes
  • Cut hidden costs, such as time spent studying new regulations
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Awards & Recognition

Leader in NelsonHall Payroll Services NEAT Report

7 years

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Leader Multi-Process Human Resources Outsourcing

10 consecutive years

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CIPP International Payroll Provider of the Year 2022

Four consecutive years

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Your payroll outsourcing questions answered

How to choose a good payroll service provider?

First, decide what form of outsourced payroll solution your business needs. You may opt for our Payroll Processing to keep some control over payroll or let us take care of your payroll and human resource information system (HRIS) with Payroll Managed Services. If you need access to experts, choose our Payroll Comprehensive Outsourcing Services. Check how many years of payroll experience the provider has - and their accreditations. With over 70 years’ payroll experience ADP manages payroll for over 1,000,000 clients.

How does the payroll handover work?

If you opt for ADP Payroll Managed Services, ADP will manage third-party payment, HMRC reporting including Electronic Data Interchange (EDI) and Real Time Information (RTI) data, statutory forms, and fixed and variable payroll data. With ADP Payroll Processing Services, you can choose which services to manage yourselves and which to hand over to ADP.

What payroll data is transferred?

Your employees’ information is transferred to the payroll outsourcing provider of your choice, including data such as hire dates, job titles and pay information.

What are the benefits of outsourcing payroll with ADP?

If you decide to outsource your payroll to ADP, we’ll help you align payroll and HR services with the needs of your business. By streamlining payroll functions and enabling the sharing of data, we improve expertise and collaboration across teams. ADP has thousands of payroll and HR experts available to advise on the implications of any changes. Plus, our cloud-based software eliminates manual errors, increasing productivity and releasing cost efficiencies.

Are there different levels of ADP payroll outsourcing to choose from?

Payroll outsourcing by ADP is scalable, modular, flexible, and offers three different forms of service. Still want to control your own payroll but would like some help? Benefit from our unique payroll knowledge with our Payroll Processing Services. If you prefer to hand everything over, choose ADP Payroll Comprehensive Outsourcing Services. Meanwhile, ADP Payroll Managed Services take on your payroll while giving you flexibility.

What is a payroll service provider?