Compliance With Evolving Legislation Is So Important - Why You Should Consider Outsourcing.

Many organisations find staying current with the frequent legislative changes a significant challenge. Increases to National Minimum Wage, National Insurance contributions and evolving tax laws, are just a few of the increasingly complex legislative changes businesses are being faced with. Unfortunately, this makes avoiding hefty penalties from HMRC an increasingly difficult task. Payroll providers are here to relieve the stress of the ever-changing laws and standards.  

 The Impact of Noncompliance 

•  Employee Stress and Reduced Trust 

 Payroll errors are one of the main sources of stress and anxiety for employees as it impacts their financial well-being directly and can lead to an erosion of trust in their employers. It is reported that 40% of employees experienced a payroll issue in the past year. 

•  Financial And Legal Consequences 

 It is common that mistakes lead to significant financial losses from overpayments, the time spent correcting errors, legal disputes and potential court action because yes, payroll is that serious.  

•  HMRC Penalties 

 Late or incorrect filings - like Full Payment Submissions (FPS) - to HMRC can result in automatic penalties and further investigations. This adds huge financial and emotional stress to the organisation involved. 

 The Positives of Outsourcing 

 Many businesses choose to outsource their payroll to expert providers to ensure accuracy, compliance and access to round-the-clock support. While having an accounting team or HR team that handles payroll as well as other responsibilities may seem more efficient, it is undoubtedly the safer choice for the organisation to employ a payroll provider that can ensure the system is constantly updated and regulated. Some businesses may have considered doing things such as: 

• Implementing payroll software 

• Automating processes 

• Providing proper training and expertise 

• Providing employee self-service options 

However, none of these options are anywhere near as efficient and easy as outsourcing because staying on top of the ever-evolving legislative changes is a very time-consuming process that can disrupt the workflow within a workplace.  

 What Outsourcing Can Add to Your Business 

•  Consistent Support and Advice 

 Hiring a payroll provider that can offer support and advice for whatever questions the organisation may have, is an invaluable resource. If there are any changes within the business payroll, your payroll team would be able to offer all the necessary support and answer all your queries.  

• Thorough Consultations 

 Many payroll teams offer a consultation so they can get to know the inner workings of the business and its staff, whilst the business can get to know the payroll team. This allows an open discussion about what your business needs and where improvements can be made.   

•  Peace Of Mind 

Having an outsourced payroll team means never having to worry about your system being up to date again. The payroll provider takes all responsibility for ensuring your system is efficient and within current regulations.  

• Cost-Saving Expertise 

There are many areas in a business where costs could be more efficient, and money could be saved. The payroll provider would find the most cost-effective and compatible payroll plan for the business they are working with and consistently check where any further expenses can be saved.  

Conclusion 

 Compliance with legislative changes is a crucial part of any payroll system and not staying up to date with regulations can lead to major consequences. To relieve stress on the business, outsourcing is the answer. It is very important within an organisation to keep a healthy relationship between employee and employer; consistent, reliable payroll is a great way to encourage that. By considering outsourcing, the business can be free from worry about if their payroll system is reliable, efficient and concurrent with the changing legislation. 

 If payroll is proving to be a headache for your organisation, get in touch and see if we can improve your working life. 

 Why You Should Contact Us 

 The Leppington Group Limited (TLG) is a UK headquartered company specialising in payroll advisory, audit and consulting services. Originally founded in 2011, TLG has established itself as a reputable, independent and trusted partner for organisations seeking expert guidance for any aspect of payroll requirements. 

TLG's core services include payroll audit & health checks, issue navigation, procurement, vendor selection, implementation guidance, project mediation, payroll administration, and cyber & privacy services. 

TLG's commitment to excellence, and a customer-centric approach, has elevated the organisation as a valuable resource for businesses seeking to optimise their payroll processes without the ‘Big Four’ price tag. 

TLG exists to make payroll simpler, businesses better and results clearer.