Sage’s SnowdropKCS payroll outsourcing service due to end: What’s next for your payroll?

HR manager
By Anthony Wolny | 1st December 2020 | 14 min read

From April 2021, many businesses face an ultimatum as Sage is retiring their SnowdropKCS payroll outsourcing service.

This news comes during a time in which payroll has seen some of its most comprehensive and complicated changes, leaving many professionals wondering – what’s next for their payroll?

With just over three months remaining before the service ceases, now more than ever, businesses must assess their payroll needs to secure themselves for the future.

To support, we’ve examined some of the most challenging payroll factors that you may need to face, as well as taking a look at our own payroll outsourcing service for those looking to transfer.

1) Managing COVID-19 schemes and legislation

The COVID-19 pandemic has shaken the payroll landscape by introducing some of the most drastic changes in recent years, including furlough, the Coronavirus Job Retention Scheme (CJRS) and the now delayed Job Support Scheme.

Payroll professionals have had to juggle all these new factors and the subsequent changes that occur each month.

Now with the CJRS extended until March, an enormous amount of uncertainty remains as to what will happen after with many businesses trying to preemptively adapt their processes coming into the new year.

2) Payroll Year End

With the financial year’s end on the horizon, that can only mean one thing – Payroll Year End is on the way.

For those without an outsourcing service in place, you’ll be required to manage the following tasks:

  1. Provide employees their P60
  2. Process holidays over the transition
  3. Prepare for week 53
  4. Process any leavers
  5. Send your final FPS
  6. Submit your report to HMRC

3) IR35

A new ruling, IR35, was scheduled to come into play in April 2020 that required private sector organisations to determine whether workers via personal service companies are operating as employees or suppliers.

Due to COVID-19, IR35 was delayed by a year, but with 2021 right around the corner, businesses must once again prepare for this legislation, conducting a variety of reviews and process changes. 

4) The demands of remote working

With the vast majority of employees now working from home, a range of payroll challenges have arisen that those who have been outsourcing may not be familiar with.

For starters, printing and posting payslips has not only become challenging due to office closures, but it isn’t the most COVID-secure practice, resulting in the adoption of electronic payslips.

Secondly, with all the payroll changes, it’s become much more difficult for professionals to handle the influx of queries when working remotely.

IRIS Fully Managed Payroll is here to help

For those who have been impacted by Sage retiring their SnowdropKCS payroll outsourcing service, don’t worry, IRIS is here to help.

Our outsourcing service, IRIS Fully Managed Payroll, has been built using our 40+ years of payroll experience, and we now have the capabilities to easily transfer any sage customers onto it.

Promising pain-free payroll, our all-encompassing service has no hidden costs, starting at £5/month per payslips, we can take onboard any size of business from micro-enterprises to large corporations.

All our customers receive a dedicated account manager that builds a relationship to ensure a personal and bespoke service. 

To further support those Sage customers who are having to make a move, we’re eliminating our set-up cost so you can easily make the move.

For more information on IRIS Fully Managed Payroll and to request your personalised quote, click here.