payroll supplier banner

Statutory paid time off for employees and the benefits of using a Payroll provider

blog img

After years of planning, you may have successfully launched your startup and wanted to expand.  However, once the company starts growing and starts to employ staff, you may need help with payroll management. 

So how does a small or medium size business fund a payroll department of seasoned professionals?  The best answer is to outsource the service to a payroll agency, as this will provides the expertise you need at an affordable cost.

A payroll service will make sure that your business  remains compliant with the payroll and pension regulations, and can make payment-related operations less stressful and time-consuming. Payroll agencies generally provide internet-based, user-friendly assistance, with the added benefit of having an expert at the end of the telephone.

It is a key responsibility of the business to ensure that their staff is getting paid correctly and on time.  Meeting the HMRC and Pension regulator  requirements is another important element that businesses must get right, or they face fines and penalties. 

Once you have the payroll resources in place, it is then important to look at the payments and benefits that you can offer your employees. Obviously there are the statutory minimum amounts that you are required to pay, but what are the benefits of offering enhances salary and benefits to staff, and how can a payroll provide help you with these? Below are a few examples of the type of benefits you may wish to consider: 

Company Maternity Pay

The support offered to businesses by payroll agencies when employees are due to go on maternity leave includes calculating Statutory maternity pay  and  maternity leave and holiday entitlement

However, should you wish to provide staff with an enhanced maternity package your payroll provider can help with this too. They can calculate the payments due (and offset any SMP)  and offer advice on maintaining employee benefits like Pensions and health care,. A good payroll provider can offer support to calculate and monitor Keep in touch days (KIT days).  

Offering staff enhanced maternity benefits can help with recruiting and holding on to valuable staff members, which can save your human resources department time and money.  Well supported employees result in higher productivity, and can increase staff morale.

When you set up an enhanced package for employees you need to be mindful of changing legislation cso these will need to be reviewed regular – your payrollp provider will be able to keep you up to date with changes to the statutory payments.

Company Sick Pay

Statutory sick pay is a legal requirement, and is available to all staff that qualify, and that are absent from work due to illness for 4 consecutive days. Whilst it is a benefit, it often falls well below employees standard earnings, and often staff come into ork while they are unwell as they cannot afford to be off sick.

Therefore some companies may want to consider offering an enhanced package to include a higher payment when their staff are off work due to illness. 

Each business will need to consider what this package should look like and the goals they are trying to achieve by implementing an enhanced package when an employee is unwell.

The policy could be based on length of service, and number of days off absent.  Managing the absence would be key, and could be recorded through the payroll. An outsourced payroll provider could certainly assist with this – reducing the burden on the business.

A good sickness policy  can help support staff who are suffering with an illness,  and could prevent employees from coming into the workplace when they are not really fit enough to complete their role effectively. It could prevent the spreading infection and viruses in the workplace, as staff take advantage of paid time off to recover.  

In the long run the business needs to assess if paying sick pay could actually save them money, as staff that are in the office are fit and able to work – it also gives the workforce some security when they are unwell.

Value of enhanced packages

Recruiting and training suitable candidates in a dynamic market worldwide can be a real challenge.  Offering the right package to staff can help attract and maintain talent in your organisation.

Outsourcing to a payroll agencies can certainly help make sure you have the right expertise to manage your payroll, and jeep track of the paid absences for employees. They also can make sure that all statutory obligations are mat and that staff are paid correctly.


Payroll services have developed over the years to provide the support and expertise that SME require to run their payroll successfully and to the maxim benefit of the business. They can offer advice and support on changes to benefits, and can provide a range of reports to keep track of absences.  Make the most of these services to get the best for your business.

close slider