If you want a payroll job doing …do it yourself?

In a recent survey, over half of accountants questioned are looking to increase their fees due to the introduction of Real Time Information (RTI) coming in to force in April 2013. And with Payroll Year End approaching, businesses should review their current payroll procedures now and think about a DIY approach.DIY

It is estimated that over 700,000 small businesses in the UK currently outsource their payroll. However, it’s worth noting that even if a business uses an outsource provider they’re still open to fines and penalties as liability will remain with them even if the outsource agent makes an error or late submission.

Many small businesses may be daunted by the prospect, and understandably, nervous about being compliant with legislation, not having payroll expertise, and fear of fines and penalties from HMRC for incorrect submissions.

As a result many outsource their payroll as they believe it is quicker and more cost effective than in-house software.

However, in-house software can automate payroll processes, so there’s no need to be an expert and ‘shut-up-shop’ for a week.

Take a look at the comparison table compiled by our payroll experts, which compares in-house software vs. an outsourced solution.

DIY V Outsourced Payroll for 5 Employees

DIY payrollCost –  Sage One Payroll from £60 for 1 year Outsourced payrollCost – £210 for 1 year*
Collate timesheets – 5 minutes Collate timesheets – 5 minutes
Enter timesheets into software – 5 minutes Send timesheets to outsourcer – 5 minutes
Print payslips and reports – 5 minutes Check payslips and reports -10 minutes
Check payslips and reports -10 minutes Pay employees – 5 minutes
Pay employees – 5 minutes Authorising submission to HMRC – 5 minutes
Submit to HMRC – 5 minutes Pay HMRC – 5 minutes
Pay HMRC – 5 minutes  –
Total minutes – 40 Total minutes – 35

As you can see, this highlights that the time needed to complete tasks for outsourcing payroll is relatively the same as doing it in-house.

The costs however, are quite different, showing that an in-house solution can save a significant amount of money and keep you in control of your payroll:

Year 1 – £150 saving
Year 2 – £450 saving
Year 3 – £750 saving

Don’t just take our word for it; see how easily you can process your payroll in under five minutes with Sage One.

Jack Ford, Small Business Team

*An average cost taken from research conducted amongst accountants. Outsourcing £3.50* per employee x 5 employees x 12 months