The Top Signs Your Small Business Needs Payroll Services

Employees are constantly asking you about the status of their paychecks

We've all been there. You're sitting at your desk, and an employee is standing in front of you with a worried look on their face.

"Have you seen my paycheck?" They ask.

You try to be as reassuring as possible. "It's probably just stuck in the mail," you say. "I'll check on it later."

But as soon as they walk away, another employee comes up to you with the same question: "Have you seen my paycheck?"

If this sounds like an all-too-familiar scenario in your office, it might be time to consider outsourcing payroll services.

If you have employees who are constantly asking when they will receive their next paycheck, it’s likely because the process is taking too long for them to feel comfortable.

In addition to being frustrating for employees, this type of situation can also create bad blood between employer and employee which could lead to someone quitting or worse yet, filing a lawsuit against your company over unpaid wages.

You’re dealing with a lot of employee turnover

According to a survey conducted by PayrollPro, 87% of businesses made payroll errors in 2022 and 67% of businesses made errors in calculating employee salaries and wages.

As a result, a research commissioned by Zellis shows that one in five British employees have changed jobs due to issues with their payroll. This means that seven million employees have left their jobs due to late or inaccurate paychecks.

Not knowing when you'll be paid again is stressful. This stress can cause mental health problems and affect your physical wellbeing as well as productivity.

Many employees feel powerless and abandoned by their employers. So if you’re constantly hiring and training new employees, it might be time to look into a payroll service.

You're always behind on tax deadlines

The deadlines for filing your quarterly reports and submitting your PAYE payments are strict. If you find yourself scrambling to file payroll taxes on time — or missing deadlines altogether — it's time to consider outsourcing your payroll services.

Your tax obligations are too complex for one person to handle alone, especially if you're handling other tasks at the same time.

You're running a business for longer than you're working for your business

Running a successful business takes time and effort, which means your days are filled with tasks like hiring, training, managing employees and meeting with customers.

If you've been in business for more than a year and you're still doing all the bookkeeping, tax forms and payroll yourself and spending more time on these tasks than you're getting paid for them, it's time to hire an accountant or payroll service.

This way you can focus on what matters most — growing your company.

You struggle to adapt to changing tax laws and regulations

It's no secret that tax laws can change quickly, sometimes even within the same year. It's important to stay on top of all changes to tax laws and regulations so that you don't miss out on deductions or credits that could save you money later on down the road.

A major benefit of outsourced payroll is that the service takes care of all the tedious paperwork that comes with running a business, including filing quarterly payments and ensuring that you're up-to-date with all government regulations.

If you find yourself constantly struggling to figure out how much money needs to be withheld from employee paychecks and when, it might be time to consider outsourcing your payroll.

You're spending more time with your accountant than at home

Don't get us wrong: we think accountants are great and do not get enough credit for the work they do.

But if you find yourself spending more time with the person who does your taxes than with your family, then it's time for some outside help.

The more complicated your payroll needs (for example, if you have multiple locations or employees with different tax status), the more time-consuming it will be for you to handle things on your own.

Pay employees with ease with libeo

Small businesses are the backbone of the UK. economy, but starting and running one isn't always easy.

Libeo makes payroll easier and far less time-consuming. Upload your payroll and schedule payment in just a few clicks:

Import a CSV or BACS file of your payroll information from whatever software you use.

Bulk schedule payments — with different dates for different employees — and sit back and relax.

Create reliable audit trails. When an employee is paid, it’s logged on their profile along with all previous payments.

FAQ

Which payroll company is the cheapest?

There are a lot of payroll services available in the United Kingdom, but among the cheapest are QuickBooks Payroll, OnPay, Gusto, Justworks and Remote.

Who is the best payroll provider?

Overall, Gusto wins the award for best payroll provider in all categories. The company offers three thoughtful tiers for small to midsize companies that need payroll with a few helpings of human resources (HR) features.

What is the easiest payroll programme?

With its user-friendly interface, QuickBooks is a great choice for businesses new to payroll. In addition to customer service, there are many resources online to help consumers get on board with payroll services.

What is the best programme to use for payroll?

The best programme mostly depends on your criteria as a user: ease of use, important integrations, convenience, reporting features, support, etc.

If you are looking for a simple solution with few features and flexibility to adapt to your needs, try Libeo. Libeo is a cloud-based accounting software that gives users all the tools they need to run their business. It can be used as a payroll provider for small businesses as well as medium and large enterprises alike.