Employers increasingly have to balance a number of criteria in order to be compliant while meeting the needs and expectations of their workforce.
Payroll outsourcing can bring new focus and drive to the payroll function. Having workers operate across the globe brings many complex domestic and international tax issues requiring a different delivery focus from the simple “rack em and stack em” approach.
Some businesses have both UK and international payroll considerations, with workers being located both in the UK and overseas. It is therefore important that these systems and processes adequately deal with UK and non-UK issues and maintain compliance both at home and abroad.
It is also important to recognise that payroll is part of the wider reporting processes of the company. Links to general reporting and information systems must therefore provide what is required by the management team and the wider organisation.
An integrated solution utilising employment tax experts, payroll professionals, industry experience and flexible management information tools is a good place to start in addressing these issues. If you're up for it, outsourcing might well be the solution for your business. The outsourcing transition cycle is simple and if managed correctly can bring immediate positive results to any organisation.
The right solution for your business is key
If you're currently discussing with your team how you can manage the payroll function more effectively, (whether managing it in-house or even outsourcing your payroll), some key considerations you should include in these discussions are:
- Roles and responsibilities - who, what, when and accountability
- Timing - consider key staff resources, time and availability to deliver
- Structure - identify the output reports required to support the organisation
- Training - employee workshops advising on tax impact on pay
- Employee support - could you do with a dedicated helpline for general and specialised tax advice?
- Payments and payslips - how about the green approach - utilising ePayslips?
- HMRC - everyone wants compliance and confidence that obligations will be met timeously and accurately
- Year end - of course you'd love to have monthly reconciliations delivering P60, P14 and P35 seamlessly
- Secure delivery - could you benefit from a self-service client extranet (and avoid over-use of email)
- Avoid duplication of effort - utilise information available and avoid reworking the same data
- Who needs information? Define the style and format to serve different internal customers. For example, rig/vessel managers, project leads, HR, finance, operations teams
- Reorganisation or IT change - consider the wider impact on your payroll delivery
- Dedicated contact - quick responses to queries and problem solving
- Budget and forecast exercises – powerful inputs available to assist in preparation
Advisory and consulting
- The internationally mobile workforce – consider 52-week rule tracking, modified PAYE schemes, robust international assignment policies, managing net of tax credit agreements and tax withholding obligations in worldwide locations
- The domestic workforce - consider tax efficient salary and benefits packages including share schemes/salary sacrifice arrangements, effective reporting and monitoring of statutory obligations e.g. PSA, dispensations
Mixing it up is sometimes exactly the right thing to do!
A proactive, relationship-driven service geared to continuous improvement is what every organisation needs. An integrated delivery approach, quality review meetings and advanced management information capabilities are the perfect blend to meet the complex demands and requirements businesses face today.
While you're pondering the right approach for your business, pick up some time-saving tips for payroll processing by downloading our guide.