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Payroll Services Buying Guide

Overview | How It Works | Advantages | Disadvantages | Things to Watch

How it works

Payroll outsourcing has become a very common method used by small and medium sized businesses that do not want to be involved in the hassle of running their own payroll.

It can work in a number of ways but normally you provide details on a weekly or monthly basis to the payroll provider. The provider then processes the your payroll and sends you back payslips with all calculations, including net pay, PAYE and National Insurance. Most payroll bureaus also deal with year-end returns, including P35, P14 and P60's.

There are several options available for the actual payment of salaries to employees. You can choose to pay by cheque or by BACS (more common). Other options offered by payroll service providers include the provision of management reports either by department or by type.



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