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.

Statutory Rate Changes in 2023

Statutory Rate Changes in 2023

From April 2023 the National Living Wage and the National Minimum Wage are increasing. As an employer you need to make sure that all your employees earn at least the NMW.

The new rates from April 2023 are:

Aged 23 and Over New Rate: £10.42 (increase from the current rate of £9.50)
Age 21 – 22 New Rate: £10.18 (increase from the current rate of £9.18)
Age 18 – 20 New Rate £7.49 (increase from the current rate of £6.83)
Age 16-17 New Rate £5.28 (increase from the current rate of £4.81)
Apprentice New Rate £5.28 (increase from the current rate of £4.81)

The increase to the National Living Wage (NLW) paid to those aged 23 and over at 9.7% is the largest ever increase to the NLW and ensures that everything stays on track to reach the government’s target of two-thirds of median earnings by 2024.

It has also been confirmed that from 2nd April 2023 the rate for family friendly payments, including statutory pay for maternity, paternity, adoption, shared parental and parental bereavement leave will increase to £172.48.

The rate for Statutory Sick Pay will increase to £109.40.

The Lower Earnings Limit, over which must be earned on average to qualify for many statutory payments will remain at £123.00.