What Is A Managed Payroll Service?
A managed payroll service is where a company chooses to outsource payroll to a provider that effectively acts as your payroll department. As a fully managed service your payroll provider will liaise with HMRC on your behalf and manage all employee calculations, payslips and payments.
By outsourcing payroll to a professional service provider, you will allow your company to remain agile, streamlined and focussed on core business activities. Payroll specialists benefit from economies of scale; they have invested in the appropriate software and staff training combined with knowledge and experience, which means they can manage payroll processing, quickly, efficiently and accurately, resulting in cost savings.
What does a managed payroll service include?
At Mascolo & Styles we offer the option to choose between partially managed payroll services and fully managed payroll, depending on your requirements. Our fully managed payroll service includes:
Employee Data – We manage your employee records and ensure that data collection and storage is legally compliant.
Calculations – We perform all calculations necessary to produce a payslip including tax and National Insurance, PAYE, pensions, SMP, OMP, SAP, SSP, SPP and OSP.
Payslips – We produce RTI and payslip production
Payments – If required we can arrange BACS payments of wages and pensions.
Employee documents – We produce P45’s, P11’s, P11d’s, P32’s and P60’s for your employees.
Auto enrolment - We automatically enrol eligible employees into a pension scheme.
Reports
We can provide a wide range of reports to help you analyse your payroll data, including:
Payments
Deductions
Company Audit
Control Summary (current payroll run)
Gross to Net (summary of payslip details)
Cost Analysis by department and cost centre
Cost Per Employee
Time & Pay Forms
Employee details
Employer Monthly Liability
What are the benefits of using a fully managed payroll service?
Staff Morale
Whether you are a small business or a large corporation ensuring you pay employees on time is vital to morale. Using a managed payroll service mitigates the risk of failing to pay your staff on time.
Prevention of fraud
In large corporations there is the potential for fraud to go unnoticed – ghost employees and fraudulent overtime can damage a business’s finance. Using an outsourced professionally managed payroll provider reduces risk of fraud through identification and reporting of suspicious activity.
Compliance
Outsourced payroll providers will be up to date with current legislation and taxation laws. During the 2020/21 COVID epidemic the introduction of the Furlough Scheme and the Coronavirus Job Retention Scheme meant payroll legislation was changing on a regular basis – using a managed payroll service ensured that all payments were compliant with the new legislation and employees were paid on time and accurately.
Payroll continuity
An inhouse payroll department can be affected by staff absences, whereas with a managed payroll provider resilience is built in so staff holidays and sick days will not affect your payroll continuity.
Find out more about the benefits of outsourcing to a managed payroll provider: Payroll Outsourcing
