There’s nothing quite like running your own business. The freedom, building your personal brand, and the fact that you call the shots.
While you’re probably the best at what you do, you might not have the expertise — or capacity — to manage your payroll without some help. You have a couple of options to choose from and your choice should be based on your specific business needs, structure, and budget.
The options are: implementing payroll software and running your payroll in-house, or using a payroll outsourcing service.
If you’re ready to take the first step in your small business payroll journey, you’ve come to the right place.
What is small business payroll?
Small business payroll refers to the process of managing employee wages, taxes, and benefits for a small-scale enterprise. It involves calculating employee pay, deducting taxes (such as income tax, National Insurance contributions, and pension contributions), and issuing payslips or making direct deposits to employees’ accounts.
Risks you face in your small business payroll
Significant mistakes due to human errors
Human errors, like incorrect data entry or missing deadlines, can result in your employees receiving incorrect payments. And no employee will settle for mistakes in their payslip. Once can be brushed off… if fixed fast. But regular mistakes will have people heading for the door – ultimately increasing your employee turnover. Then, of course, there’s the cost of recruiting and training replacements, which is even more difficult to manage in a small business like yours.
Data security threats
Payroll involves handling sensitive employee data, including personal and financial details. Failing to secure this data properly can lead to data breaches. Such breaches can cause significant harm to employee trust and satisfaction but may also result in your employees leaving the company for a more secure environment.
Data loss
Payroll data is critical for both legal and operational reasons. Losing this data due to inadequate storage or poor backups can have severe consequences. It would certainly disrupt your payroll processes, but it could also violate HMRC’s data retention regulations.
Non-compliance
Compliance with statutory regulations like workplace pension schemes and legislation like Labour’s Employment Rights Bill is crucial. Non-compliance can lead to penalties, legal issues, and significant financial repercussions.
Don’t be like the big businesses
In March 2024, The Telegraph reported that nearly 10,000 Asda employees received incorrect payslips due to an IT error, with some reportedly missing up to two weeks’ wages.
An Asda spokesman told The Telegraph: “We recently launched a new HR system and conducted pre-emptive checks to identify any potential issues before colleagues were paid this month.
“These checks found a potential problem with holiday pay that could have resulted in a pay discrepancy for some hourly paid colleagues.
“We have taken immediate and proactive steps to correct this – to help make sure there will be no shortfall in pay for these colleagues this month. Project Future will give Asda a world-class IT platform.”
Why outsourcing is right for your small business payroll
Cost efficiency
Hiring in-house payroll staff is expensive, particularly if you have a limited budget. Outsourcing saves costs by providing access to professional services at a lower price than hiring dedicated payroll employees.
Expertise and accuracy
Small businesses often lack the in-house expertise to handle complex payroll processes. Outsourcing to payroll experts guarantees that everything is handled by skilled professionals who are up to date with the latest payroll trends and technology.
Data security
The best payroll outsourcing providers typically have robust security measures in place, including cloud-based data storage and cybersecurity certifications, which help protect your business from data breaches.
Compliance
As we’ve previously mentioned, keeping up with evolving payroll legislation can be challenging. With the right provider, outsourcing makes sure that your payroll is always HMRC compliant, reducing the risk of penalties or legal action.
Scalability
As your business grows, managing payroll becomes more complex. Outsourcing offers a flexible solution that can scale with your business, making sure that your payroll remains efficient even as you add more employees.
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Your checklist when choosing a provider to outsource your small business payroll
When selecting a payroll outsourcing provider for your small business, there are a number of key questions that we recommend asking:
- Does the provider have experience in your industry?
- What services do they offer besides payroll processing?
- Is their software user-friendly and easy to integrate?
- How responsive is their customer support team?
- What’s their pricing structure and value proposition?
- Can they provide references from previous clients?
Why you should choose Cintra
Expertise and experience
Cintra have over 40 years of experience in payroll services, which means we’ve developed deep expertise and knowledge in the field. Our team consists of highly skilled experts who are continuously trained to stay updated on all things payroll.
Reliable technology and software
We’ve invested heavily in our technology, including our own payroll software. Our systems are designed to facilitate smooth and error-free payroll processing, supported by real-time calculations and live reporting.
Data security
Data security is a top priority for us. We manage all our sensitive payroll data using cloud-based solutions, we’re partnered with AWS for secure storage, and we maintain robust cybersecurity measures. We’re also ISO accredited, giving small businesses peace of mind that their data is safe from breaches.
Compliance expertise
At Cintra, we understand better than most that payroll regulations change frequently, and we’re committed to keeping our clients compliant. Our expert team handles all compliance issues, easing the burden on small businesses so they can concentrate on what they do best.
Scalability and flexibility
Cintra is equipped to handle the payroll needs of businesses as they grow. Whether you’re a small business with 10 employees, 300 employees, or more, our solutions can scale to meet your requirements.
Comprehensive services
We offer more than just payroll processing; we also provide HR outsourcing services, recruitment software, expense management software and much more.
Trust and reputation
We have a strong reputation in the market, backed by numerous industry accreditations and awards, including being named Payroll Service Provider of the Year several times.
Do you want accurate, timely, and compliant small business payroll?
Whether you’re interested in running your payroll in-house or you’re leaning towards outsourcing, learn more about our payroll and HR services for small businesses.
Or if you already know what you want, book a demo with one of our payroll experts today.
Find out more about Cintra's award-winning outsourced payroll services.
