Any accountants in the UK who are looking to outsource client payroll, will have one question at the very top of their mind: “How much does it cost to outsource UK payroll?”
Prices for payroll, vary depending on the type of client payroll you are outsourcing. Generally, there are two pricing models:
1. Same salary model
This is appropriate for simple payroll with the same salary details/amount every month.
2. Variable salary model
This is designed for more complex payroll requirements such as where your client has different types of employees (eg, part time/full time) or pay frequency (eg, weekly/fortnightly) or variable pay amounts.
What are the costs?
To make it easy for you to understand the overall costs, we have listed individual elements below:
1. Setup cost
The fee to set-up payroll with a supplier will vary according to the size of your accounting firm and your requirements. For a new company set-up, typical charges start at £10.00 per company as a one-off cost
2. Running payroll / Per payslip costs
This cost will vary depending on the number of payslips your accounting firm processes. Typically, you could expect to pay between £2 to £3 per payslip. Outsourcing companies generally give a discount when there are more payslips to process each month.
Accountants providing payroll services would also be offering Auto-Enrolment services as well, and if not this is an excellent opportunity to start offering it with minimal overhead investment. Outsourcing Auto-Enrolment costs are made up of three components:
4. Year-End Filing
HMRC has made the year-end filings very simple for each time payroll is processed. However, the primary concern is to ensure you submit your final FPS and/or EPS before 19th April. You could be expect to pay £20.00 per EYU (£10.00 for client set-up and £10.00 for processing)
How can you determine if payroll outsourcing is appropriate for your accountancy practice?
If you've answered NO to any of the above questions, then it may be worth discussing your requirements with us. To help accountants evaluate our payroll services risk-free, we are offering a FREE non-obligatory trial. The trial includes payroll work for 1 company with up to 5 employees for one pay
To make the maximum profits from payroll, it is essential to move to an outsourced model. It is a straightforward way to turn a low-margin service into something that turns a profit, while also removing the time you spend on it and the investment you need in terms of software and hiring specialist payroll staff. Learn how to make payroll profitable for your practice using the free guide below.
My name is Vishal Kurani, the author of the QXAS blog and I appreciate you stopping by! I help accountants gain Accounts Outsourcing knowledge through my easy to follow blogs and guides. Download my free guide "The Accountants Guide to Making Payroll Profitable" to learn how to make payroll profitable for your accountancy practice.