Your Essential Guide to Payroll Outsourcing

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1 Guide: Payroll Outsourcing Your Essential Guide to Payroll Outsourcing The benefits of payroll outsourcing for your organisation your payroll heroes

2 If you are drowning in payroll red tape and compliance... If you are spending time, money and resources managing your own payroll... If you are in the vulnerable position of relying on one key person to manage your payroll... Then it may be time to think about outsourcing your payroll to your friendly payroll heroes Contents Introduction Why should I consider outsourcing my payroll? How does it work? How do you choose a payroll provider? The Dataplan payroll service How easy is it to move? What can you expect from Dataplan? An innovative service Call for an informal talk to one of our payroll experts 2

3 Guide: Payroll Outsourcing When choosing a payroll provider it is the people that make all the difference The trend to outsource key functions within a business is growing with the outsourced payroll industry leading the way. Over the last 10 years the industry has grown and matured and has a track record and evidence as to the benefits it can bring an organisation. Outsourced payroll is now within the reach of all sizes of business from the largest corporations streamlining their operations to small and medium sized businesses facing problems with compliance and the recruiting, retaining and training of their payroll staff. The sector is changing, however, and once where the motivation to outsource was all about saving money, the trend is moving from a mere cost-cutting exercise to a service that can add value to the business. It is no longer merely a process driven function, the value of the people involved in that process is becoming paramount. Payroll is a highly sensitive and mission-critical function and to let another business take on that task requires trust. So it is less about software and systems and more about building a partnership relationship with your payroll provider. A relationship that means you cannot only trust them implicitly with your payroll but that they can add value to the relationship. The worry with any outsourcing is that it leads to a volume drive production-line approach. We only have to look at the outsourced call centre situations to see how this can impact on customer service. With lesser skilled people performing elements of the process, a lack of personalisation of service and the requirement for clients to fit their processes into a standard one-size-fits-all model. The future of outsourcing payroll is the antithesis of this. Highly skilled specialists working alongside clients, providing tailored solutions and building rapport, client knowledge and trust. The data generated from payroll is also increasingly being used to provide improved management information and bespoke reporting that can offer insights that help businesses make improvements far beyond a smooth-running payroll. Whether it is providing information on staff costs, absence management, wage levels or even productivity, by handing the payroll to a specialist outsource partner, with a focus on personal service, the benefits to your business go much further than immediate savings. Richard Rowell Managing Director " Efficient, knowledgeable and trustworthy, always giving me 110% every month. Celergo UK Ltd" Visit 3

4 Why should I consider outsourcing my payroll? Free-up time to focus on core activities Saving money is often the initial driver for payroll outsourcing. The main reason, however, that organisations choose to outsource to a specialist provider is that it frees up time and resources to concentrate on strategic areas such as recruitment, retention and staff performance that have a direct impact on profitability. The outsourcer will take on the day to day management and responsibility for delivering consistent results and should also be proactive by developing the service and benefits to the business. "Dataplan take all the hassle out of company payroll, ensuring that both parties can focus on what " they do best Health Care Management Solutions Ltd Peace of mind gained from expertise provider will keep up to date with the latest legislation and statutory requirements. By selecting to work with a specialist outsourcing company an organisation can ensure their payroll is managed by payroll professionals not payroll administrators. Increase operating efficiencies Most companies outsource because they believe that it will save them money. Immediate savings, however, may not always be seen unless you are running your payroll very inefficiently. An organisation may not see savings until 18 months down the line. What outsourcing payroll can easily do is allow an organisation to see a transparent, actual cost of payroll and also alleviate the variable cost burdens such as updating technology, systems and staff recruitment and training. 95% of firms outsource because they believe it will save them money* With the constant stream of new and changing legislation the complexities and demands of today s payroll are increasing. In recent years this has included pension complications, mid year personal allowance changes, CIS and subcontractor tax and childcare schemes and these changes show no sign of abating. Compliance is essential and having the security of working with payroll experts means it is one less thing to worry about. Your outsourced (*Employee Benefits 2007) Call for an informal talk to one of our payroll experts 4

5 Guide: Payroll Outsourcing Increase payroll efficiency Despite often being viewed as a back office activity, payroll is fundamental to the life of an organisation. If people don t get paid, the company will not exist beyond the very short term. If there are inaccuracies with payroll, it will have a direct and negative effect on staff motivation and morale. Many businesses want the accuracy and efficiency to be placed in the hands of payroll experts who are experienced in the running of complex payrolls and understand the latest legislation and regulations. Businesses that rely on a single member of staff to handle the payroll are placing themselves in a highly vulnerable position if that person leaves or is absent. By outsourcing to a dedicated payroll outsourcer you can be sure that there is a team of people managing your payroll. productivity or recruitment problems. Perhaps there are departments who are under or overstaffed or have too heavy a reliance on overtime or casual staff? Reduce risk Payroll data is extremely sensitive and in light of this payroll outsourcers have extremely high levels of data security. When choosing a provider it is important that you look at the experience and processes they have in place to ensure that your data is in safe hands. Do they offer secure online approval that avoids the need to send data via for example? Do they have a robust disaster recovery policy that would ensure business continuity and payment of staff was made if the worst happened? 41% of employees affected by a payroll error have been underpaid* Improve management information One benefit of payroll outsourcing that doesn t come first to mind is the impact it can have on the quality of management information. By choosing a provider that offers tailored management information and reporting, your payroll can bring rich and timely information into your business. Why outsource? Improve operating efficiencies Spend more time focusing on your core business Protect your company against employee dissatisfaction, costly errors and hidden expense Ensure your payroll is compliant with the ever-changing legislation The data on absence, for example, can highlight potential health or morale problems. Information on head counts and salary costs may help you focus on *ADP / YouGov Visit 5

6 How does it work? With such a time critical process as payroll the thought of moving to another company to handle it whilst still hitting payroll commitments can be daunting - after all every organisation has its own systems, procedures and idiosyncrasies. A good outsourced payroll provider will be used to the needs of different types of businesses and will provide a quick and seamless change over. There are often initial worries or concerns when a company is facing outsourcing their payroll for the first time This person is responsible for providing the payroll information needed at the agreed timescales and approving the processed payroll. Any staff queries can be handled by either the payroll provider or employer. How flexible will the process be? You might assume that by having your own payroll member of staff it will give you more flexibility. This often isn t the case as they don t have the expertise or time to respond to ad hoc requests or meet incredibly tight deadlines. Will we lose control of the payroll? The nature of outsourcing is that you are handing over a function to a third party. This doesn t mean you are losing control. In fact, far from it. You are placing your payroll in the hands of people who specialise in payroll processing. And, even though they are handling your payroll, no payroll will ever be processed without your final approval and sign off. With a fully managed payroll service you retain complete control over your payroll, it is just managed elsewhere. You gain expertise and no loss of control. " Dataplan By choosing a payroll provider that works with you to build a tailored service that matches your needs, you can get the processes and information you need from day one. And, if there are things that need doing at the last minute, a specialist outsourced payroll company has the ability and resources to pull out all the stops and respond to the emergency. provides a smart approach to our payroll with efficient service, it's good to know you are " in safe hands Sunrise Software Ltd???? Will we still need some in-house payroll expertise??? With a fully managed solution, your only responsibility is to appoint a payroll contact who knows your business and who will liaise directly and be the point of contact for the payroll outsourcer. This is often someone in HR or Accounts but could be the business owner, PA to the MD or Office Manager. Call for an informal talk to one of our payroll experts 6

7 Guide: Payroll Outsourcing Will the service be reliable? Picking an outsourcing business that specialises in payroll will ensure high levels of reliability. After all, processing payrolls is their sole focus so they have to get it right. An outsourced payroll service must provide processing accuracy, adherence to deadlines and speedy problem resolution. They will be processing payrolls for many companies every month, generating thousands of payslips and will be experienced and knowledgeable about most payroll issues or situations. If you are in a specialist sector, such as education where there are additional payroll complexities, look for a provider with a track record in this area. Will my sensitive data be secure? One of the initial worries businesses often have when considering outsourcing is the confidentiality of their payroll data. There is a fear that data sent and stored outside of their organisation could be vulnerable to access or loss if systems crashed or disasters happened. The fact is that your data is probably far safer in an outsourced environment than at your own premises. Outsourced payroll providers invest heavily in technology and infrastructures that protect their clients data including robust encryption, back up and disaster recovery policies. For your own peace of mind ask any provider about business continuity and if they have IT security accreditations / assurances in place. Will I be able to access my data to run reports? The answer to this depends on the outsourced payroll provider you choose. One area to be careful with is that often companies quote a very low per payslip cost, but make charges for every additional activity they do for you, including running reports. A good provider should be able to add value to your payroll data by supplying reports and management information, ideally bespoke to your needs. How much hassle will it be to change? Most businesses worry about the effect of moving their payroll to an outsourced provider and the impact this transition will have. Payroll is one of the time critical aspects of running a business and employees expect to get paid on time and accurately so a smooth handover is crucial. Outsourced payroll providers have project management systems and processes that are geared up to handle this change. As part of your initial meeting ask about this process and the anticipated timeframe for implementation. You should also expect to have a contact that your staff can call if they do have any queries. Dataplan process over 2 billion in wages every year Visit 7

8 How do you choose a payroll provider? How do you choose a payroll provider? Although there are processes and data involved in payroll, don t forget that at the heart of a good outsourcing experience is trust in the provider and confidence in the people you are dealing with. For the arrangement to work there needs to be a solid understanding of the capabilities and services being provided. Competence Underpinning the relationship must be trust that the payroll provider has the resources and technical ability to deliver a competent service. There are now a number of accreditations in the industry to provide evidence that your chosen provider can provide you with a secure, compliant and well managed service. You can ask about the Chartered Institute of Payroll Professionals (CIPP) Payroll Quality Partnership or ISO9001 Quality Management systems or IT security accreditations as part of your due diligence. Supplier or partner? The best approach is one of partnership. You want to be working with a payroll provider who is not purely interested in short term gains but who wants to act for your business for many years to come and can grow and change with your business and be proactive in their solutions and recommendations to you. Going the extra mile While many organisations are happy to have meetings every 6 months or so with their outsourcer you may want to meet more frequently than that. Your provider should be open to meeting regularly and be proactive in the recommendations and information they give you. After all, the world of payroll is never a static one. You should be given a dedicated named contact (or team) in order to give business continuity. And like all good business partnerships the outsourcer should build a relationship over time by staying close to your business. Culture fit An important factor in finding the right partner in any business area, but especially something as sensitive and crucial as payroll, is their attitude to people. What are their levels of staff turnover? Do they give their staff the empowerment to deal with queries and be proactive for their clients? Although some of the more pragmatic facts such as price will play a part in your choice of payroll partner, don t forget some of these softer factors. If you are to build a long and successful partnership with your payroll supplier, these are areas that need to be considered at the outset. Call for an informal talk to one of our payroll experts 8

9 Guide: Payroll Outsourcing MANAGING THE RELATIONSHIP Before deciding on an outsourced payroll provider there are a number of questions you should be asking yourself and them. ASK YOURSELF Do I have more important business matters you could be focusing on other than payroll? What kind of service do I need? Bureau or fully managed? What level of contact do I need? How quickly do I need them to respond to queries? Am I looking for improvements in service levels? How complex is my payroll? What management reporting would benefit my business? Is there other important information I could gain from my payroll data? How secure is my in-house payroll data? What is my budget? Do I understand all the cost implications? Do I want to approve and view my payrolls online? Do I want to reduce the amount of paper payslips? ASK THEM How can they streamline your payroll process? Do they offer proactive support? How often are they willing to meet? Do I have a dedicated contact? What Service Level Agreement can they offer? What is their track record with organisations like mine? Do they offer bespoke reporting? Is there an additional charge? Can they offer any added value information such as absence tracking? What is their security and disaster recovery policy? What is their charging structure? Are there any hidden extras or charges in addition to the per payslip price? What secure online systems do they have for easy payroll approval? Do they offer electronic payslips for employees? How will we handle Auto Enrolment? How can they prove their technical competence? What can they do to help with Auto Enrolment? What industry accreditations do they hold? Visit 9

10 Dataplan - your payroll heroes We might not be the biggest, but we do aspire to be the best in outsourced payroll. Our philosophy is that to get really good at something you need to specialise, and that s why we concentrate on payroll. Our team of payroll heroes are ready, willing and able to manage your payroll (however complex) and make the transition and process a pleasure not a trauma. At Dataplan, we are not a HR business with payroll bolted on, or a software provider expanding our business. We live and breathe payroll. In fact it is not all we do, we prefer to think it is everything we do. The outsourced payroll sector can be a minefield and often extra costs hidden beneath a low per payslip price. That s why our team of superheroes like to do things a bit differently - Transparent pricing no confusion or bamboozling, we don t strip everything out just to headline a low payslip price only to add it on in extras down the line. The price we quote is the price you will pay. Guaranteed. Expertise all our heroes are professional payroll experts. We have no sales staff. We only employ experienced payroll professionals. Personal service no faceless administrators or help desks. You will have a named contact or team so you can be sure you get to speak to someone who knows your business payroll. We offer bespoke management reports set up to give you the powerful information you need. And it s included in our price. Innovation the world of payroll never stands still and our boffins are always striving to provide innovative solutions and services for our clients. An example is our award-winning epaysafe online portal which allows the easy and secure online approval and management of your payrolls and our latest invention - epayslips, for those organisations who want to offer employees an alternative to paper payslips (we have even developed it as an iphone app). Specialist payroll experience Certain sectors have specific payroll demands that add complexity to the process. Whether it is understanding teacher pay scales for schools or managing weekly payrolls and timesheets for care homes we have the experience. Education and schools Care and Nursing Homes Recruitment Agencies Hotel, restaurant and pubs Security industry Solicitors and professionals Media, design and IT Charities Medical centres and GP's Bespoke reporting no two organisations are the same which is why we don t have a one size fits all approach to our reporting. Call for an informal talk to one of our payroll experts 10

11 How easy is it to move? Guide: Payroll Outsourcing Dedicated transfer team - we appoint a dedicated project team to help you through the process. Their job is to take you through each stage, manage all of your payroll needs and settle you in. Liaise with provider - we will contact your existing provider to get the information we need. The Process You collect your payroll information such as hours, overtime, bonuses Data entered onto standard forms spreadsheets or via epaysafe Implementation Guide - we will issue you with an Implementation Guide which is a Received by Dataplan and entered onto our software comprehensive document that will hand hold you through the transfer and implementation process. This guide also You provide amended details Completed payroll reports posted on epaysafe for checking lets you know all the information we need to ensure a smooth transition. Payroll accuracy - we often find that there are existing errors in payrolls when we take them over. At the initial stages of setup our payroll team will be working with you to ensure the highest level of accuracy from the outset. NO Payroll correct YES Payroll finalised, payslips printed and sent to you or epayslips uploaded You pay your invoice Speed of transfer - with 40 years of experience in managing payrolls, we have the experience to ensure the transfer and setting up of your first payroll is quick and efficient. Handling queries - once you have made the decision to outsource your payroll, the last thing you want is to have to handle any queries from staff. Dataplan will help you answer employee queries. We send payment of wages by BACS HMRC PAYE/NI filing (inc. RTI submissions) PAYE, Pensions, AOE s and other deductions paid by BACS Smoothing the transfer - in order to help you and your staff with the transition we can offer your staff a drop-in-day to go through any payroll issues they may have. We issue our invoice Honest pricing - the price we quote is the price you will pay. So no nasty surprises at year end. Visit 11

12 What can you expect from your payroll heroes? Our fully managed payroll service comes to the rescue as a high quality, cost effective service that will integrate seamlessly with your organisation. Amongst the host of payroll providers out there, we aim to stand out, not as being the biggest, but as providing a reliable service that is second to none. So how do our heroes do it? A tailored service Large payroll businesses are processing millions of payslips on very small margins. They can do this by having standard processes that allow them to deal in bulk. But what if your requirements aren t standard, or don t fit into their processes? At Dataplan we have a more consultative approach. We work with our clients to establish the processes that best meet their requirements and business objectives. This includes specifying bespoke reporting so we can give you the exact management information that will be of most benefit for your business such as exception reporting and absence monitoring. A personal service Many businesses claim that they offer great customer service but the reality often falls short. With payroll, we don t believe you can provide a good experience without personal service and to deliver this you need people talking to people. Not call centres, and certainly not software or a server in the corner of your office. Our payroll heroes work directly with our clients, building relationships and in-depth knowledge of their payrolls. That is why our client retention and satisfaction rate is so high and why our clients are so happy to refer us to their colleagues and peers. Customer Charter Total satisfaction guarantee If you are for any reason dissatisfied with our service let us know. We will not charge you for what you are not delighted with. New customer guarantee We offer you a three month no risk trial. If at the end of three months you are not happy with our service we will refund all of your fees and provide you with full copies of all of your payroll data. Deadline guarantee We guarantee that we will meet all of your pay dates when you provide information in the agreed timescales. Compliance guarantee We will guarantee that your end of year returns are filed on time. Confidentiality guarantee As a subsidiary of Forrester Boyd Chartered Accountants the confidentiality of your payroll information is assured. No surprises guarantee Our pricing structure is simple with few occasions where additional charges are made. We guarantee to agree with you in advance before incurring any additional fees. Price guarantee Our contracts are fixed annually. There are no further increases. Call for an informal talk to one of our payroll experts 12

13 Guide: Payroll Outsourcing A secure service BACS This is the latest and most secure method of electronically paying your employees. Dataplan is among a handful of payroll companies specifically accredited by BACS to transmit payments via this method from our facilities and not via a 3rd party provider. Business continuity You need to be confident that whatever happens we are able to meet your payroll deadlines and pay your staff on time. Our triple level backup system and second site is second to none in the payroll field and in the event of a disaster such as fire, flood, power failures we can be up and running within three hours. The PQP is a quality accreditation from the Chartered Institute of Payroll Professionals (CIPP) for organisations across all industry sectors who wish to achieve best practice in the development of payroll people. Being awarded this accreditation means that - we deliver best practice in the development of our payroll professionals we provide a compliant and efficient payroll service our staff have been assessed as being top performing payroll professionals Information Security Our IT team constantly monitor IT security and our external PCI DSS certified penetration testing means you can be happy that your data is held safe and secure in the UK. A quality service The quality of our service is delivered through our fantastic team of payroll heroes, but we are also committed to delivering against established quality accreditations and standards. Dataplan Payroll is accredited with ISO9001 the internationally recognised quality management standard and in 2012 was awarded PQP (Payroll Quality Partnership) accreditation. Visit 13

14 Innovation is our middle name As a specialist payroll business we aim to provide leading edge payroll services and are constantly looking to embrace the possibilities that new technologies can offer. The internet and mobile phone technology offers a fantastic opportunity to streamline and enhance the outsourced payroll experience, yet many providers are sadly falling behind in utilising these possibilities. At Dataplan, we are constantly looking at new ways to use technology to improve the service we offer our clients. epaysafe secure online service One of the major concerns businesses have about outsourcing their payroll is the security of the data transfer, whether it is via or post. Dataplan s solution to this is the development of a bespoke and innovative online system that allows its clients secure access, approval and management of their payrolls. payrolls quick and efficient. Secure multi-level access allows people to enter data, such as hours worked, in a format that cuts down on processing time and increases accuracy. Because the system is web-based it can be accessed from anywhere 24/7, across multisites or whilst working out of the office. Secure and seamless Unlike traditional processing systems, epaysafe gives a seamless approval process. As the administrator, you can log into epaysafe at any time and view the progress and status of your payroll. You have a full secure audit trail of each stage of the process and a full payroll archive at your fingertips. epaysafe may be accessed via the internet but all data is sent in a safe 256 bit encryption environment which is the standard used by financial institutions for sensitive data such as credit card information. Intuitive and user friendly Dataplan first looked at developing a bespoke system because we wanted something that was easy to use and intuitive. An off-the-shelf package did not fit with what clients required from the system. With minimal training, epaysafe becomes an integral part of the payroll function and there is no software to install. " Dataplan combine the customer focus that you would expect from a small provider with the professionalism and features of a " major player in the sector AS Motors Streamlining the process Even if you have multiple payrolls, epaysafe makes the submission and approval of your Call for an informal talk to one of our payroll experts 14

15 Guide: Payroll Outsourcing Easy management of payroll tasks Calendar of key dates Notification of all updates Smart form data entry Auto enrolment solutions Affecting all businesses by 2018 auto enrolment cannot be ignored and in addition to a basic compliance service offered to all customers Dataplan offer additional services aimed at helping you communicate with your employees at the right time, with the right information and cost effectively. epayslips Dataplan, since 2010 have provided a full suite of epayslip options including secure website, smartphone apps and combination traditional and electronic payslips. Developed by our IT team we have full control of our epayslip solution and have produced a number of bespoke self-service solutions for customers too. Employees are now demanding epayslips and our solution is a simple but powerful bolt on to your payroll service allowing secure payslip delivery plus much more. See our dedicated site at for more information. Visit 15

16 About Dataplan Dataplan has been in the business of providing payroll solutions About since We are Dataplan a division of Forrester Boyd who are a UK top 60 Chartered Accountancy firm. We apply the professional approach and high standards that you would expect from a leading firm of accountants to our payroll services. Dataplan We currently has been act for in the over business 500 businesses of providing nationally payroll and solutions our since customers We are are a subsidiary spread throughout of Forrester the Boyd country Chartered from Edinburgh Accountants to and accordingly Torquay. We we handle apply the payrolls professional all sizes approach although and our high core standards client to our base payroll is with services businesses that you between would expect 50 and from 2,000 a employees. leading independent firm of accountants. We are not a huge faceless bureau but a specialist managed We payroll currently provider. act for We over have 1200 expertise businesses is some nationally of the and most our customers are demanding spread throughout payroll sectors the country such from as education Edinburgh and to with Torquay. our team We handle payrolls of payroll of all professionals sizes although there our is core no payroll client base situation, is with however businesses between complex, 50 we and cannot 9000 employees. handle. We are not a huge faceless bureau but a specialist managed payroll provider. We have expertise in some of the most demanding payroll sectors such as education and with our team of payroll professionals there is no payroll situation, however complex, that we cannot handle. It was this expertise, levels of service and commitment to quality that earned us the coveted CIPP Payroll Service Provider of the Year 2013 in their Payroll and Pensions Excellence Awards. Find out more about how Dataplan can help your business free up valuable time Call for an informal talk to one of our payroll experts Or visit Dataplan Payroll Ltd, 1 Prince Albert Gardens, Grimsby, DN31 3AG Dataplan Payroll Limited is a company registered in England and Wales. Company Number: your payroll heroes