What is managed payroll?

When it comes to running a business, payroll is one of those things you have to do. And with that comes all the complexities that makeup what payroll is.

And if you're struggling with the intricacies of payroll? Managed payroll is the solution you need.

The service provides complete management of your payroll functions—from managing tax filings to processing employee salaries—streamlining your business operations and ensuring compliance.  

But what exactly is a managed payroll service and how does it benefit your business?

Let’s explore what it entails, how it benefits your company, and its role in freeing you to focus on what matters most—growing your business. 

Decoding Managed Payroll Services 

Business operations often lean on managed payroll services as their indispensable allies. They shoulder the responsibility of managing tasks such as tax filing, employee data management, and payroll processing.

Think of a fully managed payroll service provider as a one-stop solution, taking control of the entire payroll process and offering additional solutions tied to payroll and HR management, including the support of a dedicated payroll department. 

In their core function, payroll service providers are specialised firms adept at processing payroll and filing taxes for various businesses. This allows you, the business owner, to focus on core business activities, knowing that your payroll is being handled efficiently and compliantly. 

The mechanics of managed payroll 

Managed payroll services operate similarly to a highly efficient mechanism. They take comprehensive responsibility for payroll tasks, including: 

• Verifying employee PAY information 

• Issuing payments

• Handling garnishments

• Remitting and filing taxes 

• Ensuring compliance with payroll regulations

Streamlining your payroll process 

You can speed up and improve your payroll processes by integrating managed payroll services with HR solutions.

These services calculate, verify, and organise payroll, reducing the administrative work you have to do. Envision a scenario where a simple button press triggers the automatic processing of your payroll.

It’s not just about making life easier—it’s about making your business more efficient and reducing errors, which can have financial implications. 

Compliance and tax filing made easy 

Managed payroll providers offer several benefits for businesses, including: 

• Expertly navigating the intricate terrain of payroll tax laws and regulations with the help of their provider’s payroll software

• Staying informed about minimum wage and tax law changes that can affect your business and communicating these updates to you

• Ensuring your business is always in compliance with the latest tax laws and regulations

By outsourcing payroll, you’re essentially hiring a team of experts to handle these important tasks for your business. 

The beauty of automated payroll systems is that they ensure: 

• The accurate withholding of taxes, garnishments, and other payroll deductions

• Payments are made on time, minimising the risk of compliance errors

• Some managed payroll services even offer additional compliance monitoring along with guarantees for correct tax payments to HMRC

Could there be a more stress-free way to handle taxes? 

Enhancing data security 

In a time when data breaches pose a significant threat, managed payroll services prioritise the security of payroll data above all. These providers implement cybersecurity measures such as multifactor authentication and continuous monitoring to protect sensitive payroll data. 

Managed payroll providers offer the following benefits: 

• Investment in advanced technologies and systems to address concerns about data security 

• Some providers achieve ISO 27001 certification for data security 

• Enhanced efficiency through outsourcing payroll services 

• Fortified data security with advanced technology and robust backup systems to protect against data loss 

The advantages of switching to managed payroll 

Adopting managed payroll equates to recruiting a highly efficient, cost-effective team that’s always at your service. It allows businesses to redirect their limited manpower towards core business functions and growth initiatives. 

Cost-effectiveness and time savings 

For small and medium-sized enterprises (SMEs), managed payroll services serve as a covert tool, assisting them in sidestepping the overhead costs of specialised payroll personnel and software.

While it may initially seem like an additional expense, outsourcing payroll often leads to long-term cost benefits by increasing efficiency and minimising compliance penalties.

Plus, the automation of administrative payroll tasks via a service provider saves businesses considerable time and operational resources—it’s a win-win.

Access to payroll expertise 

 Collaborating with professional payroll service providers offers businesses the advantage of: 

• Tapping into specialised knowledge and expertise in payroll management 

• Streamlining processes and ensuring compliance with regulations 

• Accessing advanced payroll systems that automate complex calculations, promoting efficiency and legislative compliance

Outsourced payroll services handle various payroll complexities. It’s like having a team of payroll experts at your disposal, ready to handle any challenge that comes their way. 

How BrightHR can help manage your payroll

In a nutshell, managed payroll services offer more than just payroll processing. They bring efficiency, compliance, cost-effectiveness, and peace of mind to businesses.

Whether you need a full-service provider or a customised solution, the key is to find a provider that aligns with your business needs and growth trajectory.

So, why not discover peace of mind with BrightHR's Managed Payroll Service?

Our team of CIPP-qualified professionals ensures that your payroll is in safe hands, providing you with the assurance of full and timely reconciliation. Reclaim your time and let us take care of it all.