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Payroll Services for Recruitment Agencies: Accuracy and Compliance

Recruitment agencies are among the most hectic places to work. There are even more reasons to outsource in a world where many people work remotely. Many businesses already use a distributed workplace model, so why not add more expertise?


Outsourcing can help businesses in a variety of ways. People have outsourced HR, design, development work, and management responsibilities. Payroll outsourcing services are exactly what you need to make everyone in accounting feel less stressed.

It is time to outsource payroll and work with a reputable payroll services for Recruitment Agencies provider like Pearl Lemon Accountants. Our experts will handle all the work related to your payroll function, allowing you to focus more on your core activities. 

Contact us today to learn more about how we can help.

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Payroll Services: A Brief Overview

Payroll service companies handle all of these functions independently for a fee, freeing up the business owner’s time to focus on other matters. Once an account is created, the employer gives the service information about employees, their hours worked, and any discrepancies. This information is processed, and funds are transferred from the employer’s bank account to the payroll service’s account. Employees are paid by either check or direct deposit. Payroll and tax reports are then provided to the employer.

Moreover, payroll services for Recruitment Agencies automate and simplify the payroll process. They are appropriate for small and large businesses and hourly, salaried, or contract employees. The number of employees will determine the type of payroll service you choose; if you only have one person working in your office, simple service is probably all you need. However, more complex solutions will likely be required to run a large operation with multiple departments or locations spread across multiple countries.

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Why Use Payroll Services For Recruitment Agencies?

With the temporary market expanding and adding to the payroll burden for a contractor and temporary worker, recruitment agencies may want to investigate the benefits of outsourcing their recruitment payroll to a reputable payroll services for Recruitment Agencies provider. 

Recruitment agencies can benefit from outsourcing their payroll to an external provider in numerous ways:

Increasing Competitiveness

The industry has always been fiercely competitive. According to the REC’s industry trends report, the recruitment sector grew by 11% between 2017 and 2018. This has resulted in thousands of new recruitment firms entering the market, increasing competition among companies even further. With more competitors and the possibility of an increase in the number of employees under your management, in-house payroll is becoming an increasing burden.

With the competition for talent and the difficulty in retaining candidates, the efficiency and accuracy of their agency worker pay are critical to success. The effects on temporary worker retention are impressive when efficient and accurate pay is combined with additional benefits and a better and more streamlined process of pay communication and support.

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Focus On Recruitment Core Activities

Work is a fragmented and complicated world. 85% of contract placements are for 12 weeks or longer. 45% are for six months or more. However, 36% of temporary assignments are for less than 12 weeks, while only 20% are for 6 months or more.

It’s all too common for recruiters to discover that nearly every employee on the books has a different contract, and keeping track of them all can be extremely difficult. It’s no surprise that more recruitment firms are outsourcing payroll, allowing them to focus on finding the next placement rather than the complexities of payroll management.

Reduces Administration

Administration consumes a significant amount of time that could be spent on other tasks that benefit the business. The weekly fluctuations cause an increase in recruitment payroll administration, which adds to payroll costs. You eliminate this administration level when you outsource your payroll because we handle everything for you.

Recruiters must manage the complex payroll requirements of foreign workers.

Managing foreign workers’ tax and national insurance arrangements can be difficult, depending on their home country and the length of their stay in the UK. Because of the nature of recruitment, the vast majority of foreign workers will end up on the books of recruiters, further complicating the payroll. Not only that but there is still a chance that rules and regulations will change again as a result of Brexit. When you outsource your payroll, you won’t have to worry about this.

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Make Fewer Mistakes

Dealing with payroll can surely be time-consuming when everything is handled in-house. Relying on an already overworked staff takes time out of their day and puts the company at risk of making more mistakes.

Payroll isn’t as simple as pressing a button, printing checks, and sending wire transfers. Payroll can easily fluctuate from week to week due to bonuses, salary adjustments, and deductions. One minor change can have serious consequences for your employees and your company.

Working with a payroll outsourcing company can help you avoid making some of the most costly mistakes. With an experienced payroll team on your side and your own internal team, you’re much less likely to make a costly error.

Expert Knowledge

Keeping up with the latest legislative changes and temporary worker employment status can be difficult, especially when it comes to recruitment payroll. When you outsource your recruitment payroll to a payroll management company, trained and specialised teams will handle worker queries and status to ensure full UK compliance.

Let Our Professionals Handle Your Payroll Burdens

If you keep payroll in-house, you will bear the entire burden. It’s not just the cost of hiring people to process payroll. It is the cost of mistakes and reworks. It’s the constant threat of fines for noncompliance and the cost of paying them when the worst happens.

Outsourcing your recruitment payroll does, of course, come at a cost. However, for our clients here at Pearl Lemon Accountants, the numerous benefits of outsourcing make it the simplest of decisions. It can simply be too much to handle without dedicated payroll expertise. As a result, it is far better to entrust such matters to a payroll professional.

Get in touch with us today if you need to learn more about our recruitment payroll services for Recruitment Agencies or simply discuss your payroll requirements.

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The base fee ranges between $35 and $200 per month, with an additional $3 to $5 per employee per payroll cycle. Most payroll companies will charge a per-person or per-check fee and a monthly base fee. 

Reach us today to learn about our costs for payroll services.

If you don’t have extra money to spend on a payroll service, doing it yourself can save you money. Manual payroll isn’t the easiest task, but with the right knowledge, time, and a sturdy calculator, you can do payroll for your small business on your own.

Even if you only have one employee, you should consider hiring a payroll service to assist you with preparing paychecks and paying and reporting payroll taxes. Remember that a single fine or penalty for a late payment or report may be greater than a year’s worth of service.

When you allow us to keep track of your finances, you give yourself more time to do your work and please more clients.It's a win-win situation for everyone.Aside from that, you'll also gain financial stability because your assets and liabilities are managed well enough not to cause any trouble for you in the future.

So let our experts work for you, and you won't regret it even a bit.

Book a call today to get started.

Let’s Talk Accountancy.

Get in touch today, so we can discuss your accountancy needs, your business, your hopes for the future and just how Pearl Lemon Accountants can help you.