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.

National Insurance (NIC) Thresholds and Rates for 2022-23

NIC Thresholds & Rates for 2022-23

HMRC has confirmed the 2022-23 National Insurance (NI) category and rates in an annoucement to the payroll software developers. So we are able to pass this information on to you ahead of the officail HMRC website.

These National insurance rates include the new health and social care levy for the 2022-23 tax year. From April 2023 the levy will become a separate deduction and will not included in future years NIC deductions.

The tables below show the earnings thresholds and the contribution rates.

Earnings Thresholds

LEL	PT	ST	FUST	UEL/UST/AUST/VUST
Weekly	£123	£190	£175	£481	£967
2 Weekly	£246	£380	£350	£962	£1,934
4 Weekly	£492	£760	£700	£1,924	£3,867
Monthly	£533	£823	£758	£2,083	£4,189
Quarterly	£1,599	£2,470	£2,275	£6,250	£12,568
Half-Yearly	£3,198	£4,940	£4,550	£12,500	£25,135
Annual	£6,396	£9,880	£9,100	£25,000	£50,270

Employee’s Contributions

Letter	Earnings below LEL	Earnings at or above LEL up to and including PT	Earnings above PT up to and including UEL	Balance of earnings above UEL
A	NIL	0%	13.25%	3.25%
B	NIL	0%	7.10%	3.25%
C	NIL	NIL	NIL	NIL
F	NIL	0%	13.25%	3.25%
H	NIL	0%	13.25%	3.25%
I	NIL	0%	7.10%	3.25%
J	NIL	0%	3.25%	3.25%
L	NIL	0%	3.25%	3.25%
M	NIL	0%	13.25%	3.25%
S	NIL	NIL	NIL	NIL
V	NIL	0%	13.25%	3.25%
Z	NIL	0%	3.25%	3.25%

Employers Contributions

Letter	Earnings below LEL	Earnings at or above LEL up to and including ST	Earnings above ST up to and including FUST	Earnings above FUST up to and including UST/AUST/VUST	Balance of earnings above UST/AUST/VUST
A	NIL	0%	15.05%	15.05%	15.05%
B	NIL	0%	15.05%	15.05%	15.05%
C	NIL	0%	15.05%	15.05%	15.05%
F	NIL	0%	0%	15.05%	15.05%
H	NIL	0%	0%	0%	15.05%
I	NIL	0%	0%	15.05%	15.05%
J	NIL	0%	15.05%	15.05%	15.05%
L	NIL	0%	0%	15.05%	15.05%
M	NIL	0%	0%	0%	15.05%
S	NIL	0%	0%	15.05%	15.05%
V	NIL	0%	0%	0%	15.05%
Z	NIL	0%	0%	0%	15.05%

Key
LEL – Lower Earnings Limit
PT – Primary Threshold
ST – Secondary Threshold
FUST – Freeport Upper Threshold
UEL – Upper Earnings Limit
UST – Upper Secondary Threshold
AUST – Apprentice Upper Secondary Threshold
VUST – Veterans Upper Secondary Threshold

NI Category Letters
A – All not covered by another category
B – Married woman and widows entitled to pay reduced NI
C – Employees over state pension age
F – Freeport standard
H – Apprentice Under 25
I – Freeport married woman’s reduced rate election (MWRRE)
J – Deferment
L – Freeport deferment
M – Under 21
S – Freeport over state pension age
V – Veterans standard
Z – Under 21 deferment

National Insurance Rates and Thresholds for 2022-23

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