The Top 5 Reasons Payroll Outsourcing is Gaining Popularity

By Sam Thomas | 27th September 2016 | 14 min read

Payroll outsourcing is becoming more popular by the day, so we've brought together the top reasons why, as well as why you should consider it.

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1. Illness and Annual Leave

Illness cannot be predicted and most business’s payroll is run by a single person. What would happen if this person were to fall ill for a number of days around your company’s payroll cut-off date? Unlikely yes, but it could happen. Additionally, whilst annual leave can indeed be predicted and planned for, working this schedule around payroll cut-offs and busier seasonal times can be time consuming.

2. Manual Data Entry

Perhaps the biggest scourge to face the payroll professional, data entry is both time consuming and tedious. As well as this, the smallest error can lead to big problems, meaning a great level of attention to detail and proofing is required.

3. Cost of Internal Payroll

According to, the average salary of a Payroll Manager in the UK stands at £32,500, whilst the average cost of printing and distributing payslips is £1.75 per payslip, when delivery of stationery, printing, sealing and postage are considered. Could your business be better off by reducing these costs?

4. Data Security

It seems like we’re seeing more and more businesses falling foul of data breaches every week these days. Data security is something that should be taken seriously, and when it comes to financial information, perhaps even more so. It’s worth noting that the Information Commissioners Office (ICO) can fine businesses up to a staggering £500,000 per breach, or in serious cases some breaches can even lead to prison time for company directors.

5. Legislative Changes

Payroll legislation changes all the time, from RTI and auto enrolment, to holiday pay and gender pay gap reporting, if you’re running payroll you need to keep on top of a lot. When you combine this with possible fines and penalties for non-compliance, it begins to sound like something you could really do without managing, right?

Outsource Payroll, Outsource Stress

If any of the points listed above sound familiar, speak to us today about the IRIS Managed Payroll Service, the comprehensive payroll outsourcing service by IRIS. We offer both fully managed and tailored services which look after all aspects of your payroll leaving you free to concentrate on your business.

The IRIS Managed Payroll Service is used by over 650 businesses of all sizes and industries to run their payroll on their behalf, so you know you’d be in good company. Click below to be taken to our handy Payroll Outsourcing Calculator which will provide you with a quick and easy outsourcing quotation.

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