How to Find Out if Your Company Needs Umbrella Payroll Services - Featured Image

How to Find Out if Your Company Needs Umbrella Payroll Services

“Should we use an umbrella payroll company?” If you’re a decision-maker in a recruitment agency, chances are you’ve asked - or been asked - this question.

In this article, we’re going to outline 7 key indicators that your recruitment agency could benefit from working with an umbrella company.

If you’re not familiar with umbrella payroll services and the benefits they offer, check out our blog post on this topic. Otherwise, read on.

How to find out if you need umbrella payroll services?

Answering the question of whether you use in-house agency payroll or an umbrella company comes down to understanding the benefits on offer, the associated cost, and seeing how the two balance out.

As established umbrella payroll service providers, you’ve probably guessed that we’re strong advocates for umbrella payroll. This way of working simplifies things for recruitment agencies and contractors alike and is a surefire way to free up internal resources that can be directed toward the pursuit of broader business objectives.

But don’t just take our word for it. Below you’ll find 7 solid reasons that a business would benefit from working with an umbrella payroll company.

#1: There’s no internal payroll team

As companies grow, so do their logistical challenges. While small organisations can make do with managing payroll without a dedicated team, ongoing growth makes this increasingly more difficult. If your company is at (or has passed) the point where you need a dedicated payroll team, it could be a good time to consider working with an umbrella payroll company.

Instead of recruiting an in-house team, which brings challenges of interviewing, inducting, and on boarding, along with salary expenses and other costs, why not outsource your payroll? Handing over responsibility to an umbrella company is a great way to ensure regulatory-compliant payroll services without the costs of recruiting and retaining a team of your own.

#2: You’ve got short term contractors and freelancers on the books

Companies with short term contractors or freelancers on their books stand to benefit from working with an umbrella company. Instead of managing each contractor’s payroll individually and keeping track of different rates and hours, you hand everything over to the umbrella company and let them take care of it.

Invoice generation, contract management, and relevant payroll deductions are done for you, giving you the time to focus energy on other things.

#3: You can't keep on top of their expenses

Managing expenses internally is challenging, even if you have an in-house payroll team. If your organisation struggles to keep on top of expenses, and the logistical headache is eating into other areas of your business, then it could be a good time to bring an umbrella company on board.

They’ll assist with expenses claims from contractors, and will look to ensure that claims are only made when the terms of their contract allow for it.

#4: You want to save time and costs on administration

The simple truth is that only a finite amount of resources exists within an organisation, and the decisions you make in how to allocate this translate directly to how the business functions.

When making decisions that will impact the future direction of your business, it’s unlikely that sinking time and money into administrative tasks is at the top of your agenda. Far preferable is time invested into growth and expansion, and money spent on the people, systems, and resources to help you achieve this.

Outsourcing payroll services to an umbrella company gives you more freedom in directing energy and resources in your organisation.

#5: You struggle to keep on top of regulatory obligations

Tax is complicated, and it’s always changing. If your business struggles to stay compliant with all the tax legislation, then handing over the reins to an umbrella company could be a great move.

Our business depends on being fully compliant with every piece of legislation. We know PAYE inside out, and we can advise on IR35 compliance. Our business undergoes independent audits to ensure we remain compliant, and all this gives us complete confidence in our offering.

If you’d rather absolve yourself of the regulatory headache, while guaranteeing that neither you nor your contractors receive any nasty surprises from HMRC down the line, then give us a call.

#6: You’d like to offer employment benefits

Growth brings opportunity for your business, and it’s only natural that you want to pass this opportunity onto your workers as well. However, implementing employment benefits in your organisation can be surprisingly complex.

At Optimum Pay Group we’re proud to offer our employees statutory benefits like sick pay, holiday pay, and parental pay. We also enrol everyone into our Nest pension scheme after three months, giving them the chance to make active investments in their future with each paycheck.

If you partner with us, your contractors become our employees, meaning they stand to enjoy all the employment benefits outlined above.

#7: You want to offer your contractors security

Further to the above, working as a contractor or freelancer carries its own set of challenges when it comes to securing loans and mortgages. If you want to continue working with staff on this informal basis, but want to ensure they have the same life opportunities as permanent employees, then this is another area that umbrella companies can help.

Our employees are able to demonstrate continuous employment status, thanks to us being their legal employer. So while they’re fulfilling contracts for your company, they’re enjoying the employment benefits that come with working under our umbrella.

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In Conclusion

Above are just seven reasons that your business might benefit from working with an umbrella company. There are many more, and it’s our belief that partnering with us will be a game-changer for your organisation.

Whether you’re looking to get rid of the organisational headaches that payroll and regulatory compliance bring, or you’re looking to extend more benefits to your contractors, we can help. We’ve streamlined and optimised the payroll process for companies across the UK, and our decades of experience mean that you and your contractors will be in safe hands.

Give us a call today and let’s see how we can help your company's payroll.


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