Business owners understand that paying staff correctly and on time is essential to maintaining morale and performance but new research suggests that even a single mistake could have serious consequences.
A survey of more than 1,000 people by payroll software specialist Sage found that 35 per cent of respondents would start job hunting if they were paid incorrectly just once. More than half (51 per cent) said it would make them lose trust in their employer and nine in ten said they would be less likely to want to work for a business that made payroll errors.
When you’re busy running and building a business, finding in-house time and resources to make sure your payroll is handled correctly can create real challenges.
So it’s no surprise that more and more businesses are finding that outsourcing – employing external specialists to deliver their payroll – provides an efficient, cost-effective solution.
Katie Hewlett, payroll manager at Moore Thompson, said: “Financial admin can be a real chore but keeping on top of payroll issues is essential for any business to function efficiently.
“Paying your staff correctly and on time is crucial to keeping your staff happy, as the Sage survey demonstrates. By making sure your tax and national insurance payments and other deductions are correct, you’ll keep HM Revenue & Customs happy too.”
Recent changes affecting payroll administration make an outsourced service even more attractive to busy business owners and managers. Real Time Information reporting requires employers to inform about tax, national insurance and other deductions on or before every payday, instead of waiting until the end of the tax year.
And auto-enrolment, under which every employer will need to automatically enrol eligible workers into a qualifying workplace pension scheme by 2018, also has payroll implications.
As part of its auto-enrolment services, Moore Thompson’s payroll team can provide ongoing support for employers, including handling opt-out and opt-in requests, adding employees to pension schemes, calculating contributions, processing deductions, providing pension reports and refunding contributions when appropriate.
Katie said: “We work with businesses ranging from those with just one or two employees to large companies with hundreds of staff.
“Whatever the size of your business, we can provide efficient, cost-effective, confidential payroll services that enable you to concentrate on running and building your business and can use in-house resources for other priorities. For more information on how we can help, please contact us.”