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Case Study - Outsourcing Payroll Services for Business


Our client is a marketing company based in Lancashire.

Our client has one office and directly employs 30 full time staff members. Employees are paid weekly in arrears.

The Company initially started with five employees and the Managing Director processed the payroll himself using an off-the-shelf payroll package.

Although having no payroll knowledge himself he nevertheless decided to take on the task himself to save costs. There was limited experience of payroll legislation and no accredited BACS facility.

Over the next 7 months the company expanded and the payroll grew in size rapidly to 30 employees, increasing the payroll workload significantly.

The company found the burden of real time information filing very time consuming. At the same time the company received notification from the software company that they needed to upgrade the payroll software to take into account payroll and pension legislative changes.

Each pay period became more complex as the company grew, with further bonus payments and overtime adjustments to process.

What intially seemed an easy task was becoming complex with more time being spent to understand payroll processes and software upgrade costs increasing.

In total, the payroll was calculated as costing the company in exces of £324 per week or £16,848 per year.

It was at this point that the company decided they needed professional help. Pay Partners was approached through a referral.


The Pay Partners payroll team visited the company to discuss requirements.

Service Requirements Identified

The company could e-mail any non-standard hours each week, along with any other bonus or holiday-pay payments. Pay Partners were able to e-mail a payroll report to check and sign-off payroll before it was run. Employees were paid directly into their bank accounts via an accredited BACS system.

  • Calculation of payments to the Inland Revenue and submission of real time information.
  • Management Information produced for costings.
  • On-going burden of the forthcoming payroll legislation and escalating software costs controlled.
  • All staff queries on pay calulation and tax codes were managed by Pay Partners.

Arrangements made to collect each employee's:

  • Payroll static data (employee personnel records)
  • Standard hours and pay rates.
  • Pay and Tax to date figures.
  • This information was transferred to Pay Partners payroll system. A parallel run was performed to ensure all data was accurate.
PayPartners charge
30 x £2.75 = £82.50 per week
a saving of
£241.50 per week
a total of
£12,558 a year

Payroll is accurate and all employees are paid on time. Costs are now managed with full legislative compliance.

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