In The Sunday Business Post (28th March 2010), Dave Boland writes about the value of outsourcing payroll.
There are many things in the business world that will be of great importance to your employees, but nothing will be as important as payroll. Employees may want to work for a company that shares their values or a company with excellent prospects for advancement and learning, but most of all they will want to get paid in full and on time.
Payroll is repetitive by nature and adds no real value to your company. It is time-consuming and hugely important that a company gets it right – this is time that could be better used in a profit-making function. Small company payroll may be left to the receptionist, but such are the complexities of ensuring payroll is done correctly that it would be far more appropriate for a company to outsource to a dedicated payroll provider.
By outsourcing their payroll, companies can avail of additional expertise which is valuable in terms of complex areas such as BIK, taxation of social welfare payments etc. By utilising the outsource payroll service, employees can ensure that they are meeting their responsibilities towards both the Revenue and their employees.
Employers rarely consider the costs of keeping their payroll in-house. Firstly there is the salary of the person dealing with the payroll. Then there are holiday and absence costs and PRSI. There are also costs for stationery, software and on-going training as well as costs for data protection and storage. There are penalties for incorrect or late submissions but more importantly, there is the opportunity cost for what is a non-core function.