Looking at Outsourcing your Payroll Service?

Looking at Outsourcing your Payroll Service?

Outsourcing Your Payroll Services

At Expert Payroll Services, we provide a payroll procurement service along with our payroll bureau service. This allows you to use our procurement process to shortlist your payroll provider. If for any reason you decide not to use our payroll bureau we can still support you, assisting you at each stage from selecting a supplier to going live, providing help and support at each stage of the payroll project. At EPS, we have expertise in implementing payrolls from various business sectors ranging from 10 to 15,000 employees. There is no scenario or situation we have not encountered and dealt with and we are always able to draw on our experience of 300+ payroll implementations. Our responsibility extends to working with your supplier ensuring parallel runs are signed off in preparation for first live runs.

To know more about the services we offer, please call us on 020 3802 1534 or email sales@expertpayrollservices.co.uk, or visit our website: https://www.expertpayrollservices.co.uk/

 

A typical payroll project for about 1000 employees is detailed below:

Once you have decided you want to change your payroll software/bureau to a new payroll bureau, the first process should be to identify what the gaps are in the current process/system. Create an RFI (Request for Information) and ask software/bureau service providers to complete this document. It is recommended that you should include all the requirements you think you might need in the next 3-5 years into this document. A typical RFI will have the following topics:

  1. Your current PAYE and payroll process details
  2. Current Issues – why you want to change?
  3. Must Haves – what you want your new payroll bureau to provide
  4. How the new bureau will satisfy your requirements
  5. Supplier Information
  6. Cost indication
  7. Project Timelines
  8. Suppliers SLA (Service Level Agreement)
  9. GDPR, Data security
  10. Closing statement

 

Send this document to 3 to 5 suppliers. Once you have received their response, go through the documents and shortlist the suppliers you want to see.

Arrange a payroll demonstration with these suppliers, make sure the main internal and external stakeholders are present for this meeting. You should then be able to select a payroll bureau provider. The next steps are broken down into three main areas:

  1. Contract Stage
  2. Project Initiation and Parallel/Test Run Stage
  3. Go Live Stage

  

Contract Stage:

This is when you should review the supplier contract, reviewing terms & conditions and ensuring they are suitable for your requirements, covering all eventualities from a legal perspective. It is recommended that you don’t progress to the next stage until the contracts are agreed and signed by both parties.

Project Initiation and Parallel/Test Run Stage:

The actual work starts here. Usually you will be assigned a dedicated consultant/project manager by the bureau provider who will kick-start the process with a project kick-off meeting. This meeting will usually cover the main requirements, timescales etc. It all depends on the size of the project this might be broken down into a phased project where certain element of the project goes live first before the nice to have list etc.

You will be provided with various documents and templates to complete so please do not underestimate the work that you have to do to get this project live. All this has to be done along with your day job so consider getting some external help or employing someone part-time until the project goes live.

Once you have completed the templates and documents the payroll bureau will start system configuration, data migration and UAT (user acceptance testing), the work that Bureau does is broken down into mainly 4 parts:

  1. System Configuration
  2. Data Migration
  3. User Acceptance Testing
  4. Parallel Runs

System Configuration:

Payroll Bureau will work through the agreed specification configure their system to automate the processes which were agreed. They will also create all the pay elements that are specific to your organisation and look at branding, reports/exports, pension AE, Payrolling BIK, OSP, OMP, Payroll journal etc.

Data Migration:

Various templates will be loaded into the system to create employee and year to date data for the current tax year. Few examples are: Employee details, Employee and NI year to date, BIK year to date, Ongoing allowances and deductions, loans, AEOs, Pension AE/ year to dates and most importantly RTI old payroll ID.

UAT:

Payroll Bureau will provide you with various payroll calculations for automated pay elements. For example, Occupation sick pay will be run for long and short-term sick and a dummy payslip will be generated to show various break down of pay IE full pay, half pay, SSP etc. Each of these has to be checked and signed off before parallel run starts.

Parallel Runs:

Most of the payroll bureaus would run at least 2 parallel runs before going live. During the parallel run, the Bureau will run through each payslip and confirm the figures. If they find a difference this issue is identified and reported to you on a parallel run issue report. Looking at this report you should be able to confirm if it is a system configuration issue or a data entry error. Once the changes are approved, the system might be changed to accommodate the new requirement. Once all issues are fixed the reports are rerun and provided to you for approval. At this point please make sure any overrides that are entered is as agreed and all automation works. If you find all the issues are not fixed at this point then please do not be hesitant to run another parallel run, timescales permitting.

Go Live Stage:

At this stage, the Payroll Bureau will process your first live payroll integrating with your current systems like HR, T&A etc. Once the calculation is run the Bureau will usually provide you with the following validation reports to check and approve payroll:

Previous to current month variances

Additional and deduction report

Gross to Net Report

Payslips

Starters Validation

Leavers Validation

Pension Assessment

Exceptions – e.g. change in tax code, person attaining pension age, mid-month salary change etc.

Pay Element Summary Report

BACS Listing

Once you check the reports and identify any further changes, the Bureau will apply this and rerun the same reports until you are satisfied with the results.

Once you approve payroll, Bureau will make salary and Third Party payments (AEO, Union etc…) and provide you with the following post-period reports:

P32

Pension AE Export

Payroll journal

Payslips via email/online

P45s

RTI Reports

Payrolling Benefits Report

 

Bureaus usually provide you with GDPR reports like Subject access request, data retention and deletion reports.

Here at Expert Payroll Services, we understand the demands of running your employee’s payroll and have the resources and expertise to help. Why not outsource your payroll to our specialists?

We will make sure your payroll is processed in a timely and accurate manner whilst ensuring full legislative compliance in all PAYE and auto enrolment related matters. Your employees will continue to enjoy the level of service they are accustomed to, allowing you to concentrate on your core business.

Our team of payroll professionals have a long history of delivering client payroll with a focus on outstanding customer service.

Why not give us a quick call on 020 3802 1534 or email sales@expertpayrollservices.co.uk, you are also welcomed to visit our website: https://www.expertpayrollservices.co.uk/payroll-outsourcing/