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.

The End of the Coronavirus Job Retention Scheme

The End of the Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme (CJRS) is due to end on the 30^th September 2021. Since 1 August 2021, the amount that the government has been paying was reduced to 60% of wages up to a maximum cap of £1875 for the hours that employees are on furlough.

To be eligible for the grant employers must pay furloughed employees 80% of their wages, up to a cap of £2,500 per month for the time they spend on furlough (20% paid by employer and 60% by the government).

Wage caps are proportional to the hours not worked. Employers can continue to choose to top up employees’ wages above the 80% total and £2,500 cap for the hours not worked at their own expense.

Holidays hours taken whilst the employee is furloughed will need to be topped up to the normal hourly rate (not capped) by the employer.

Once the Furlough scheme has ended you will still need to keep Payroll and HR records for 6 years, details you must keep include:

the amount claimed and claim period for each employee
the claim reference number for your records
your calculations in case HMRC need more information about your claim
for employees you flexibly furloughed, usual hours worked including any calculations that were required
for employees you flexibly furloughed, actual hours worked
Copies of documentation you have sent to employees regarding Furlough and flexible furlough.

Below are helpful links to ACAS and Gov.uk regarding the end of furlough, and the relevant paperwork you will need to keep.

https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme

https://www.acas.org.uk/coronavirus/furlough-scheme-pay