Payroll Services for Small Businesses | UK Providers | IRIS FMP (2023)

Payroll Services for Small Businesses | UK Providers | IRIS FMP (1)

It’s a known fact that running payroll can be very time-consuming and stressful. This is especially true when you’re also trying to run your small business or get your start-up off the ground. Fortunately, our payroll experts are on hand to do the hard work for you, freeing up your time and giving you complete peace of mind.

What is Payroll Outsourcing?

Payroll outsourcing means we do all the work for you, so you don’t have to. Working as an extension of your small business, our payroll specialists can provide assistance with all aspects of payroll, as well as ensuring your small business is compliant with ever-changing government legislation.

Whether you run a limited company, are a sole trader or a charitable organisation, our small business payroll service is fully tailored to meet your specific requirements.Contact ustoday for more information.

What Our Small Business Payroll Services Involve

Have 1-50 employees? Take a look at how we can help, paying your employees on time, every time.

  • Payroll processing
  • Payroll auditing
  • Printing and posting of security sealed payslips
  • BACS payments
  • Third-party disbursements
  • Online filing to Inland Revenue
  • All end of year work.

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What About Payroll Software?

Payroll software can be hugely beneficial for larger businesses. However, for small businesses and start-ups, we would always recommend opting for payroll outsourcing services over software. This is because the costs associated with recruiting, training and managing the staff using the software is an overhead which is often disproportionate to the number of people actually on the payroll.

It’s likely that at this moment in time, your small business can’t afford to recruit experienced payroll employees. This means you may be considering an underqualified or current employee, who has little to no knowledge. This can lead to longer timeframes for payroll processing plus a higher likelihood of mistakes, which in turn can lead to staff being paid incorrectly or late!

Benefits of Small Business Payroll Outsourcing

It’s a common misconception that payroll outsourcing is expensive. With IRIS FMP’s managed payroll services for small businesses, payroll has never been easier or more cost-efficient. Choosing an outsourced payroll service enables business owners to relax in the knowledge that payroll is being processed accurately, on time and in line with current legislation.

Avoiding all of the pitfalls such as incorrect payments to staff, late payments and the resulting fines from HMRC, a fully outsourced service provides complete peace of mind that this important business function is taken care of, and that your company is legislation-compliant.

Payroll Services for Small Businesses | UK Providers | IRIS FMP (3)

It’s Cost-Effective

Our small business payroll service is a cost-effective solution for businesses that do not wish to manage their payroll themselves. Instead, it offers a flexible solution that can easily accommodate more employees as you grow, or be scaled back as required. Once set up, you are simply charged a fixed per-payslip fee, enabling easy monthly budgeting.

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Payroll Services for Small Businesses | UK Providers | IRIS FMP (4)

It’s Time Efficient

Payroll legislation is regularly changing and it can be time-consuming and stressful to keep up with. Using our managed payroll service means your valuable time can be invested in other areas of the business. It provides the smooth running payroll processing enjoyed by large businesses, with none of the hassle.

Payroll Services for Small Businesses | UK Providers | IRIS FMP (5)

Minimises Errors

Paying employees late or incorrectly can cause major problems in your business. Errors over wages can be extremely upsetting to staff, particularly if this results in essential payments to their mortgage or credit card company being declined. Using IRIS FMP’s managed payroll service will ensure wages will be paid correctly and on time.

Why Choose IRIS FMP’s Small Business Payroll Services?

  • We offer a fully managed payroll service for start-ups and small businesses
  • No business is too small to benefit from our services
  • We charge a competitive per payslip fee
  • No hardware or software is required. All data is processed by our payroll team
  • Data can be supplied to us by email, fax or in an emergency the phone
  • We are fully HMRC approved
  • The service includes payroll processing, auditing, printing of security sealed payslips, BACS payments, third party disbursements, online filing to Inland Revenue and all end of year work.
  • All customers have a dedicated, UK based account manager

Payroll Services for Small Businesses | UK Providers | IRIS FMP (6)

40+

years’ experience

135

countries of operation

2,200+

clients, and counting

£1.9bn

in BACS transactions

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SME Payroll Outsourcing FAQs

If running payroll in-house is so problematic for a small business, why don’t more SMEs make the transition to payroll outsourcing? There are several common reasons, which we will look at in more detail.

How much does it cost to outsource payroll in the UK?

SMEs quite sensibly try to minimise unnecessary overheads, by doing as much work in-house as possible to help keep down costs. In fact, moving to payroll outsourcing can save companies money and time. Outsourced payroll eliminates the extra expense of running a department, whilst managing any time-consuming admin.

Outsourced payroll protects from the ever-present risk of incurring a costly HMRC penalty. Although there is an initial setup cost, this is relative to the size and complexity of the payroll – so getting it established while the company is still small can be valuable. Once set up, there is a fixed per payslip charge which means payroll costs are predictable. If there is a need to keep payroll outsourcing costs to a minimum, a payroll bureau option is cheaper than fully managed payroll.

Won’t we lose control?

Many small businesses worry that they will lose control over their payroll if they outsource. But with IRIS FMP you retain all the visibility and control you want. You will be provided with regular reports as standard, and you can request additional reports at any time.

What if I don’t have the time to organise it?

Many start-ups and small businesses are so overwhelmed by running the business daily that they don’t feel they have the time to think about making strategic changes to the payroll system. At IRIS FMP we have an established procedure for bringing on new clients, which is designed to minimise the time you need to personally invest – and, therefore, saving you even more time in the future.

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Will it reduce errors?

Having your payroll managed by the experts can make for smoother, if easy going, payroll. Outsourced payroll is designed to lighten the administrative burden on your already busy team, making payroll solutions feel invisible – especially as your dedicated payroll manager will correct any teething issues as they arise.

What happens with the administrative task of payroll if I outsource?

After initial setup, it no longer becomes a routine worry for your business. Outsourcing with an expert can save you the hassle of regular admin, especially as we generate and submit reports that examine your business-specific data.

What happens with my data?

Outsourcing your payroll will entail giving employee payroll information to your payroll provider, i.e. rates of pay, bank account details, etc. This can raise questions about confidentiality and data protection.

But how safe is your employee data right now? If it’s sitting on a computer in your company’s office, it’s only as secure as your office. Not only that, but the people authorised to see that data are also company employees, who will very likely know your other employees personally. In fact, your employee data can be even more secure when kept by an impartial third party with stringent server security in place.

Can you respond quickly if something needs sorting out?

Many business owners like to have someone in the office who is on hand to deal with problems as they arise. But depending on a single person can mean you actually have less control over sorting out problems quickly. For example, people going on holiday or having days off sick. They also have lunch breaks or need to go home suddenly in an emergency.

By outsourcing, you avoid this dependence. At IRIS FMP we have a large team of professionals to call on to help deal with any problems, and you will be assigned a dedicated Payroll Manager who you can call at any time. This means there will always be someone to talk to, who will start working on resolving your issue straight away.

Won’t changing what we are doing disrupt our business?

At IRIS FMP we try to make your small business’s transition to payroll outsourcing as painless as possible. We carry out a complete requirements capture and then build your system. When it’s ready, we carry out extensive testing alongside your existing system to ensure it’s running correctly, before switching you over to the new system.

Once the new system is running, any teething problems or future issues will be dealt with by your dedicated manager. So, while there may be some initial disruption, you will ensure much less ongoing disruption due to payroll problems in the future. Outsourced payroll typically helps better your focus on running your start-up or small business.

Still thinking of managing your payroll in-house?

If you haven’t yet reached out to a small business payroll provider and are thinking of doing it in-house, here are some key considerations that must be taken into account when it comes to managing your employees’ payroll:

  • Register as an employer with HMRC
  • Decide who will manage PAYE
  • Invest in payroll software
  • Set up a payroll timetable
  • Ensure you are compliant with UK law
  • Check employees’ data is accurate and up to date to submit to HMRC
  • Create a system for onboarding new employees
  • Additional pay considerations (.e.g. bonuses)
  • Security and confidentiality
  • Back-up plans
  • Ensure you are following current payroll rules
  • …. and much more

Remember, IRIS FMP are here to take the stress of compliance out of your hands, ensuring your staff are paid accurately and on time.

We'll help you take the pain out of payroll

Whatever support is needed for your small business, IRIS FMP has a service to help.

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FAQs

What is the best payroll provider? ›

The Best Payroll Providers
  • OnPay.
  • Gusto Payroll.
  • ADP.
  • Rippling.
  • Paychex.
  • Intuit Quickbooks.
  • Paycor.
  • Deluxe.
3 Nov 2022

How much do payroll providers charge? ›

Most payroll providers have a base fee from $30 to $150 dollars per month that increases by $2 to $15 per employee. There are additional costs to add on depending on how regularly you pay employees and whether you are using basic payroll services or a full-service payroll provider.

How much do payroll services cost UK? ›

The cost of outsourcing payroll typically ranges from £1 to £8 per employee, per month. You'll pay a bit more if you opt for additional payroll services like integrated HR and pension plan auto-enrolment. However, as most major players in the payroll industry work with bespoke pricing, it's wise to compare quotes.

How do I choose a payroll provider? ›

6 Things To Consider When Choosing A Payroll Provider
  1. Data Conversion. When considering a conversion, it's important to also look at whether the payroll system is unified with core HR and attendance. ...
  2. Data Integration Capabilities. ...
  3. Payroll Tax Compliance Management. ...
  4. Data Conversion. ...
  5. Customer Support.

What is the most popular payroll software in UK? ›

Best payroll software UK 2022
  • Xero – Best small business payroll software UK.
  • QuickBooks – Best payroll software for medium-sized business UK.
  • Sage Business Cloud Payroll – Simple payroll for small business UK.
  • BrightPay – Best desktop payroll software UK.
  • MoneySoft – Easy to use desktop payroll software.

How much should I pay someone to do payroll? ›

While pricing depends on a number of factors, you can generally expect to pay about $200-$250 per employee per year. Here, we'll breakdown what's behind this figure, including: Payroll pricing approaches. Factors that drive up the cost of payroll.

How do I set up a payroll company UK? ›

Setting up payroll
  1. Register as an employer with HM Revenue and Customs (HMRC) and get a login for PAYE Online.
  2. Choose payroll software to record employee's details, calculate pay and deductions, and report to HMRC.
  3. Collect and keep records.
  4. Tell HMRC about your employees.

Is it cheaper to outsource payroll? ›

Reduce costs

Payroll providers charge fees, but when compared to the cost of the fines and penalties that can result from mistakes, outsourcing payroll may actually save businesses money.

How is payroll done in the UK? ›

Payroll tax UK is collected through the Pay As You Earn (PAYE) system. Simply put, it's your obligation as an employer to figure out how much tax your employees owe, deduct it from their salary, and send it to Her Majesty's Revenue and Customs (HMRC).

How much does payroll cost for 1 person? ›

You can expect to pay between $35 and $200 per month for the base fee and between $3 and $5 per employee per payroll cycle. Most payroll companies will charge a per person or per check fee plus a base monthly fee.

How much does a payroll app cost? ›

The average cost of payroll software is about $30 per month for the base fee, and then around $4 to $8 per employee per month. Some of the most expensive plans start at $150 per month, plus $12 per person per month.

How do I do my own payroll for my small business? ›

How to process payroll yourself
  1. Step 1: Have all employees complete a W-4 form. ...
  2. Step 2: Find or sign up for Employer Identification Numbers. ...
  3. Step 3: Choose your payroll schedule. ...
  4. Step 4: Calculate and withhold income taxes. ...
  5. Step 5: Pay payroll taxes. ...
  6. Step 6: File tax forms & employee W-2s.
12 Jan 2021

What are payroll service providers? ›

A payroll service provider (PSP) is a third-party that can help an employer administer payroll and employment tax obligations.

What are 2 different types of payroll systems? ›

The four most common types of payroll schedules are monthly, semi-monthly, bi-weekly, and weekly, and each has its own set of pros and cons that determine which approach best fits a given organization.

Is ADP in the UK? ›

Payroll Services & HR Solutions - Award-Winning | ADP UK. Don't know your HRIS from your HRMS? Discover the meaning of the latest UK payroll and HR terms and abbreviations with this free glossary.

Is QuickBooks popular in the UK? ›

Our independent reviews are funded in part by affiliate commissions, at no extra cost to our readers. QuickBooks is relied upon by small businesses across the UK – who love its features, straightforward pricing (including regular deals and discounts) and customer support.

What is the most common payroll? ›

The most common payroll schedules
  • Weekly payroll. A weekly payroll schedule means that your employees will get paid every week on the same day of the week, often Friday. ...
  • Biweekly payroll. A biweekly pay schedule means that your employees will get paid every other week on the same day, often Friday. ...
  • Semi-monthly payroll.
19 Aug 2021

What are the 3 types of salary payments? ›

Three methods employers use to compensate employees include salary, hourly wage and commission.

Can you do payroll for one person? ›

To pay your one employee, whether you're doing it yourself or working with a payroll service provider, you will need: Employer identification number (EIN) State and local tax ID numbers, if applicable. State unemployment ID number.

Why is payroll so expensive? ›

Full-service payroll is more expensive than basic payroll systems because the payroll does more, like filing taxes on your behalf.

Is it hard to do your own payroll? ›

In short, you shouldn't run payroll by yourself.

Running payroll on your own is more complicated than writing a few checks every two weeks. It's that plus withholding federal, state and local taxes, sending those tax payments to the IRS and your state, and filing your tax forms on time.

Can I start my own payroll company? ›

Apply for a state business license, if applicable. The state may not require you to obtain licensing for a payroll business. However, many states require accountants to obtain state licensing. Therefore, you may need a state license if you will be handling your client's payroll and accounting tasks.

Can I do my own company payroll? ›

If you don't have extra funds to spend on a payroll service, the DIY approach can save you some cash. Doing manual payroll isn't the most straightforward task, but armed with the right knowledge, time, and a sturdy calculator, you can do payroll for your small business yourself. Here's how to do payroll manually.

Are payroll companies regulated UK? ›

UK Payroll and PAYE

Any company employing one or more employees needs to register for this, keep records, and submit full payment details through the PAYE system. It is administered by UK HMRC (HM Revenue and Customs).

Should a small business outsource payroll? ›

Outsourced payroll costs more than the in-house alternative, but the advantages often outweigh the drawbacks for smaller businesses. Your outsourced payroll provider can guarantee compliance with local laws and ensure that your employees' payments always go through on time and in full.

How much does ADP payroll cost for small business? ›

Overview. Pricing starts at $79 per month plus $4 per employee. Businesses can request a price quote on the company's website, and introductory rates are sometimes offered.

What payroll system is used in the UK? ›

Best Payroll Software in the UK in 2022

Sage Business Cloud Payroll - Best for small businesses. Intuit Payroll - Best for Construction Industry Scheme (CIS). KashFlow Payroll - Best for paying furlough staff. Xero Payroll - Best for fast-growing businesses.

How do small businesses pay employees UK? ›

How to pay staff
  1. Register new staff with HMRC. The first step for any business taking on staff with pay over the lower earnings limit is to register with HMRC. ...
  2. Payslips. Employers are legally required to give employees a payslip before or on their pay date. ...
  3. P60. ...
  4. P11d. ...
  5. Further reading on payroll.
15 Nov 2021

How do I do manual payroll UK? ›

Generally, this only takes 3 steps.
  1. Register your business as an employer through HMRC.
  2. Register your employee with the HMRC using a Full Payment Submission (FPS). ...
  3. Set up your PAYE system and begin your payroll process.

How do you estimate payroll? ›

First, determine the total number of hours worked by multiplying the hours per week by the number of weeks in a year (52). Next, divide this number from the annual salary. For example, if an employee has a salary of $50,000 and works 40 hours per week, the hourly rate is $50,000/2,080 (40 x 52) = $24.04.

How much does payroll cost per month? ›

The average monthly cost for the payroll of a company with 30 employees and weekly payroll is $300 to $600. Year-end W2 and 1099 costs for businesses with 30-50 employees are $250 to $500 (one-time fee per year).

Does QuickBooks offer payroll? ›

Yes. All QuickBooks Online Payroll plans offer full-service payroll. That means, in addition to automated payroll, you'll receive full-service features. Automated taxes and forms: Federal and state payroll taxes—including your year-end filings—are calculated, filed, and paid automatically.

Do I need a software to run payroll? ›

Payroll software can help you avoid crucial mistakes

From calculating and withholding taxes to helping with end-of-year filings, the best payroll software will help you avoid the most common payroll mistakes. Payroll companies usually update their systems to stay on top of changing state and federal requirements.

Is there a free app for payroll? ›

TimeTrex's free open-source payroll software is perfect for business owners who want smooth time-tracking integration with basic payroll features. Those basic features include paycheck calculations, direct deposit options, tax form generation, and employee access to paystubs.

Does Google have a payroll app? ›

- Gusto automatically calculates, pays, and files your federal, state and local payroll taxes, as well as W-2s, 1099s, and new hire forms. - You can manage your payroll, benefits, 401(k), workers' comp, and HR all in one place – and keep them all in sync.

How much should a small business spend on payroll? ›

How much should you spend on payroll? The general consensus is that payroll should be no more than 20-30% of the company's gross revenue. However, experts say that in certain industries (such as service businesses) payroll costs can be as high as 50%, without harming profitability.

How do I run a manual payroll? ›

How do you do manual payroll? To do payroll manually, you need to calculate each of your employees' gross pay for the pay period, and then determine the dollar amount of all taxes/benefits that must be deducted. Once you have done this, you can find their net pay and pay them via check or direct deposit.

How many payroll providers are there? ›

There are 307,717 Payroll & Bookkeeping Services businesses in the US as of 2022, an increase of 1.5% from 2021. Has the number of Payroll & Bookkeeping Services businesses in the US grown or declined over the past 5 years?

Do I need a payroll service for my small business? ›

Payroll can be complicated, and most business owners lack the time and resources to do it properly. Failure to do so can incur penalties and fines. Hiring a payroll service alleviates the need to manage the process and ensures you comply with all laws and avoid possibly harsh penalties and fees.

What is a third party payroll service provider? ›

A payroll service provider (PSP) is a third party that can help an employer administer payroll and employment tax obligations.

What is better than ADP? ›

One of your top alternatives to ADP is the cloud-based payroll provider Gusto. The services from Gusto Payroll are some of the most customizable on the market, with three different plans available, plus a contractor option for businesses that only work with contractors.

Why ADP is the best payroll? ›

Fast, easy, accurate payroll and tax, so you can save time and money. Manage labor costs and compliance with easy time & attendance tools. For advanced capabilities, workforce management adds optimized scheduling, labor forecasting/budgeting, attendance policy, leave case management and more.

Who is ADP's biggest competitor? ›

Competitors and Alternatives to ADP
  • Oracle.
  • SAP.
  • UKG.
  • Ceridian.
  • Paycor.
  • Freshworks.
  • ZingHR.
  • Epicor.

Is ADP a good payroll company? ›

ADP is one of the best-known payroll providers out there, and it offers a wide variety of plans to try and meet your needs. It could be a great option if you see your business growing quickly. Unless you opt for Roll, ADP's new mobile-first payroll platform, you'll need to get a quote.

Is QuickBooks or ADP better? ›

ADP is pricier but more flexible, offering HR and more personalized assistance, making it a good choice for businesses needing more than payroll software. QuickBooks, on the other hand, is easy-to-use but has limited integrations and HR features, making it ideal if you need just payroll.

How much does ADP cost for a small company? ›

Overview. Pricing starts at $79 per month plus $4 per employee. Businesses can request a price quote on the company's website, and introductory rates are sometimes offered.

Can small businesses use ADP? ›

Nearly 800,000 small business clients trust ADP® to deliver a better payroll experience. Our small business expertise and easy-to-use tools simplify payroll and HR, so you can stay focused on the work that matters most.

Is workday better than ADP? ›

ADP Workforce Now provides a lot more support options and helpful resources than Workday HCM, so it wins this round.

What companies use ADP for payroll? ›

Companies using ADP Payroll for Payroll include: T-Mobile US, a United States based Communications organisation with 75000 employees and revenues of $80.12 billion, Deere & Company, a United States based Manufacturing organisation with 75550 employees and revenues of $43.58 billion, Cambridge Associates LLC, a United ...

How much is ADP per employee? ›

To get a quote, you must complete an ADP pricing form online or speak directly to a sales representative about your company's requirements. Based on reports from payroll-only users, the Essential plan starts at $59 per month plus $4 per employee.

Does Amazon use ADP? ›

Amazon's global leader of payroll talks about their partnership with ADP during a time of explosive growth and how they were also able to improve the employee experience. Any time you select a partner, you're looking for two things: great technology and a great team to work with. With ADP, we have both.

Does KPMG use ADP? ›

Whether your company is a small or medium business (SMB) or a large, multinational enterprise, KPMG's alliance with ADP can help you generate tax savings and improve compliance by providing offerings for research and development (R&D) tax credits and global mobility services (GMS).

Does Honeywell use ADP? ›

Looking for a way to better manage resources to boost productivity, Honeywell turned to ADP as a trusted partner to deliver results.

Is ADP compatible with QuickBooks? ›

RUN easily integrates with QuickBooks Online and Desktop versions. Seamlessly import your account list from QuickBooks into RUN Powered by ADP® payroll to enable easy account mapping, and to push payroll transactions from RUN into QuickBooks with one click!

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