Getting your Payroll done every month needs vigilance and professional accounting knowledge. You can hire an onsite accountant or choose to outsource the task to an independent accountant who will take payroll charges depending on your company size.
While there is a strong point on maintaining an in-house accountant if the company is significant, but from small and medium businesses, onsite payroll processing demands onsite staff and purchasing and maintenance of the payroll software. They all contribute to a high payroll cost. Also, you have to oversee the affairs yourself, which will cost you your time. Outsourcing is the best way to save money and time.
The average cost to outsource Payroll
Accounting firms usually offer a base package and charge a related package fee. The fee starts from as low as £25 per month and goes up to £250. This is not the exact cost because it depends on the needs and size of your company.
The cost includes basic services like paycheck processing and basic tax filing. The fee will vary with the number of employees, location, and complexity of the business.
Average payroll cost with 50 to 100 employees
Payroll charges go up with the number of employees, and different accountants quote different amounts for Payroll. In the UK, on average, it costs £200 per month if you hold 50 employees. The price of 100 employees ranges around £500 per month.
Why Payroll is a big deal
Calculating Payroll may seem a simple job, but it should not be taken lightly at all. Any small mistake will cost you big. Things can quickly go south if you make simple errors like incorrect calculation and methodology. The employees will suffer if the previous UK experience is not applied or someone is on the wrong tax code.
Tax assistance will cost you extra
You have to pay an additional cost if you want some extra tasks, including annual accounts and tax return filing. Payroll doesn’t include year-end accounts. The business accounts cost ranges up to £150 with a company turnover of £20,000 to £30,000. The price gets higher with size. Director’s tax returns will cost you an extra £300.
Additional Payroll Costs
You may have to encounter additional costs for check signing, direct deposits, and new-employee reporting. You will have to pay extra for adding new employees if your fee covers only a specific number of employees. Sometimes the company makes payroll adjustments on your behalf, which will cost you more.