How does outsourcing payroll work?

It is a very simple process. You just need to sign up with us for a free trial or contact us directly. We will then ask you to provide us with the information for your payroll online. That’s all you need to do. Payslips and reports are sent to your online secure system.

Should I outsource my payroll?

Yes, you definitely should. Business consultants have made it clear that outsourcing some of the non-core functions to professionals can be good for your business. It helps you save time and money, get expertise, ensure compliance with government regulations and make payroll processing safe and secure. Most importantly, you employ your resources on your central functions which allow you to generate more income as well as saving costs.

How much does it cost to outsource payroll?

With 1 employee in your company, dhPayroll is less than £15 per month. We work on a sliding scale so that you only pay for the work we do, and that helps you keep your costs to a minimum. Costs can be as little at £3 per payslip for larger companies with 50 or more employees. We can further reduce by tailoring costs if your payroll is weekly or you have more than 100 employees, so please contact us in any case for further information on the costs. We would be pleased to discuss your requirements and provide you with a quote.

Is outsourcing payroll cost-effective?

Yes, payroll outsourcing is a very cost-effective solution for your business. Think of all the time and money that is spent in calculating payroll in each period, printing, signing and distributing payslips and making payments, software maintenance, keeping up with changes in tax rates and other training issues, recruiting and training payroll staff, along with premises and other IT costs associated with internal payroll staff. Outsourcing is definitely going to cost you less.

When should you outsource payroll?

You should outsource your payroll when you feel that the cost of getting it done in-house is more than outsourcing it to professionals, but also you would like the added benefits of security and simple effective software and secure online access to payslips and P60s for your team. It is best to focus on the core functions of your organisation because that is what drives your business and makes your company successful.

Holiday Entitlement for Part-time Workers: What You Need To Know

Another area commanding attention is the holiday entitlement of part-time workers, an aspect often overlooked. UK law stipulates statutory holiday entitlement for all workers, including those working part-time.

In the UK, holiday entitlement for part-time workers is calculated proportionally to their full-time equivalents. A part-time staff working three days a week would earn a minimum of 16.8 days of holiday (5.6 weeks x 3 days per week).

Determining Holiday Entitlement for Part-time Workers

Pro-rata basis: Part-time workers are entitled to at least 5.6 weeks of paid leave on a pro-rata basis.
Bank holidays: Bank holidays do not necessarily count as paid leave. The employer can include them as part of the annual holiday entitlement.

Both employers and part-time workers should take the initiative to understand holiday entitlements to maintain a fair, balanced working relationship.

Final Thoughts

It is essential for the effective functioning of a company to have a solid understanding of holiday entitlement for all employees including those that work part-time.

Clear record keeping, and communication to staff regarding their entitlement will help make sure staff receive the holiday they are entitled.