The freelance workforce has increased by 48% since 2008. People are taking matters into their own hands, as this type of work gives them more flexibility, movement and independence. The days of working in one company for the majority of your life are over. And the shape of employment is changing. Which is exactly why you need systems in place to reflect this. Whether you are a contractor or recruiter, outsourcing your payroll is one of the many things you can do to make life easier.
Types of Payroll
Pay as You Earn is the most standard type of payment for contractors who work across the board. Simple and easy. Tax, National Insurance and pension comes out of your wage packet.
With a service like umbrella payroll from People Group Services, you will technically become an employee of an umbrella company. This means they will deal with your agency to ensure payments are carried out smoothly. The great thing about this is that they give you professional insurances to ensure compliance.
Construction Industry Scheme payroll services invoice the agency on your behalf and are for construction works specifically.
Or alternatively, you could function as a public service company. Organising your own limited company is ideal for high earners but will often need to employ an accountant.
8 Advantages of outsourcing payroll services:
Less time with admin, more time for you. Managing your own accounts can be a hassle when all you want to do is focus on the job in hand.
If you are working across a range of jobs, the umbrella company can streamline your payments into a single account to make it easier to manage and access. It’s predicted that by 2020 40% of the workforce will be in “contingent work”. This means people working as contractors, freelance or through agencies.
No surprising taxes
Trusting a payroll management company means years worth of expertise in an area that you can easily go awry. Rest assured that your tax code is correct according to all your channels of income. All the tax is paid at the source, so you won’t need to spend so much time submitting your tax return at the end of the year.
Keeping up with changing legislation can be one more thing to think about when you would rather be spending time creating that desired income. Laws are being pushed more than ever, as HMRC are taking a closer look at the nuances between employees and contractors in legislation such as IR35.
Have access to customer service round the clock.
With most payroll management companies you can access all your payslips and contracts at the click of a button with easy-to-use apps.
No more waiting around for checks to be completed before you can start work. Recruiters can see how their new workers fit the bill much faster with access to certifications. An external service can produce a full audit trail which cuts out the paperwork.
Work-based pension and holiday pay
An external payroll company can incorporate your pension and holiday pay into your take-home salary so that you can get the same benefits of those in employment.