What is payroll outsourcing?
Payroll outsourcing is when a specialist company manages your payroll for you and ensures every employee gets paid each month, securely, on time and accurately. Payroll outsourcing services include taking care of the administrative tasks involved with payroll, so your HR, finance and admin teams are freed up from this time-consuming work. Outsourcing payroll can minimise risk by keeping you compliant with regulations, including the GDPR, and also means your payroll will operate seamlessly no matter how many people you employ in different geographies around the world.
The benefits of outsourcing your payroll are many, from eliminating the costs of in-house payroll, to helping avoid mistakes and tax compliance penalties. 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. Your quarterly and annual reporting, done for you.
When you unburden your business from manual payroll, you’re able to make the work of your HR teams more rewarding. It also helps your business to work in a more agile way.
It’s absolutely vital that you get payroll right, but payroll processing is getting more complex and more time-consuming. By outsourcing payroll, your business benefits by enabling HR teams to spend more time on supporting employees, and developing training and retaining talent, plus focussing on strategic goals set out for employees overall performance.
Other benefits of outsourcing payroll include cutting costs, making better decisions about the cost of labour, and reducing errors and the risks of penalties for regulatory non-compliance.
You should outsource payroll when:
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:
Once you’ve transferred your employees’ information, such as hire date, job title, and salary information to the payroll outsourcing provider, they calculate, control and transfer the pay that’s due to each employee via a direct deposit or payroll check. If employees clock in and out, this data will be processed and each pay period is taken care of by the payroll outsourcing software.
Pay will be deposited into employees’ bank accounts (direct deposit) and delivered on your behalf. Tax and National Insurance contributions will be paid for you when they’re due, and reports provided to your business. Your payroll outsourcing provider may also be able to take care of new hire onboarding paperwork and required employee tax documents.
You can customise the payroll services you outsource, choosing either to retain control of some aspects, or to opt for fully managed. Many companies choose to outsource payroll runs, depositing funds directly or issuing cheques to employees, and the calculation and paying of employee taxes.
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, ADP have over 70 years of experience in providing payroll services. We have a history of innovation - ADP was the first payroll company to deliver automation, move to the cloud, provide a mobile app, and create an online marketplace, clearly leading the industry in innovation.
Since 1949 we’ve been a trusted partner that people can count on. Our customers stay with us, on average for at least 11 years, and we now manage payroll for over 810,000+ clients worldwide across businesses in all industries and geographies.
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:
ADP GlobalView® HCM 2019
It’s absolutely vital that you get payroll right, and payroll processing is getting more complex, more time-consuming. Whether you want to reduce costs, errors and the risks of penalties for non-compliance, payroll outsourcing is a good idea. Outsourcing payroll enables a reorganisation of your internal HR processes, so your HR teams can spend more time on supporting employees and developing a more strategic role instead.
The cost of outsourcing payroll varies depending on the size of your business and your business needs. With ADP payroll outsourcing you’ll get a clear view of the cost with no surprises – prices are fixed depending on the number of employees you have. You can customise the payroll services you outsource, choosing either to retain control of some aspects, or to opt for fully managed. ADP payroll outsourcing means your payroll is taken care of by experts in payroll, with over 70 years of experience and expert advice at your fingertips. Discover ADP Payroll Services.
Payroll outsourcing by ADP is scalable, modular, flexible, and offers different levels of services. If you still want to run your own payroll but would just like a little help, ADP Payroll Processing Services will give you the benefit of our our unique payroll knowledge and expertise. If you’re happy to hand everything over, then ADP Payroll Comprehensive Outsourcing Services is for you. If you want an option somewhere between these two, ADP Payroll managed services give you flexibility and are a scalable and modular offer. You can outsource some payroll services, or all of them.
If you opt for ADP Payroll Managed Services, ADP will manage third-party payment, HMRC Reporting including EDI & 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.
Your employees’ information is transferred to your payroll outsourcing provider, including data such as hire dates, job titles and pay information.