Whether you are in the process of hiring staff for your business or you are a director paying salary to yourself in Ireland, here are is a simple guide to payroll in Ireland.
Should you consider outsourcing your payroll, it is important that you understand how to do this correctly. You can find out more information about payroll outsourcing by reading our article.
If you have any questions regarding payroll outsourcing in Ireland please contact us at info@irelandaccountant.ie
Payroll outsourcing: The Pros and Cons
Payroll outsourcing has become an increasingly popular option for small businesses looking to save time and money. However, there are many different types of payroll outsourcing available, so choosing one that best suits your needs will be key to success.
The most common type of payroll outsourcing involves using an online service to manage all aspects of payroll. These services usually offer a free trial period before charging fees, which makes them ideal for smaller companies who want to test the waters without committing too much cash upfront.
Another form of payroll outsourcing is known as direct payroll. With this method, employees send their pay directly into the account of the employer, rather than through an intermediary. Direct payroll is often used when employers hire freelancers, contractors and temporary workers.
Direct Payroll vs Online Services
There are pros and cons to both methods. While direct payroll saves time and minimises administration costs, it also means that employers must deal with the tax implications of each payment. If the employee’s home country does not recognise Irish taxes, then they may need to declare these payments as income in their own countries.
On the other hand, online payroll services allow employers to avoid dealing with the complexities of foreign taxation. However, since they are based overseas, they can charge higher rates than local providers.
When deciding whether to use a direct payroll system or an online provider, it is worth considering what kind of work you plan to outsource. For example, if you only need to issue payslips and handle basic deductions, then an online service could be suitable. However, if you would like to perform more complex tasks such as calculating pension contributions, then you should look for a direct payroll solution.
What are some of the benefits of using an online payroll outsourcing service?
Online payroll solutions provide numerous benefits to employers. Here are some of the main reasons why they are becoming more popular:
• They Save Time – Since they take care of everything from setting up accounts to issuing payslips, employers don’t need to spend hours every month doing paperwork. Instead, they can concentrate on running their business.
• They Reduce Costs – By avoiding the cost of employing someone locally, online payroll systems help employers keep down overheads.
• They Help Employers Meet Compliance Requirements – Many online payroll services meet compliance requirements such as those set by the Department of Social Protection.
• They Offer 24/7 Support – Most online payroll providers offer support around-the-clock, meaning that employers can get answers to any queries quickly.
• They Can Be Customised To Suit Your Needs – Online payroll systems can be customised to suit individual companies. For instance, many providers offer different levels of security depending on how sensitive your data is.
• They Provide Access To A Wide Range Of Features – Some providers even include features such as auto-enrolment, which automatically enrol new employees into pensions schemes.
How much does it cost to set up an online payroll system?
Since there are so many options available, it is difficult to give exact prices. However, it is important to note that online payroll providers typically have monthly subscription fees ranging between €50 and €300 per year. These charges cover all the software and hardware required to run the system.
The amount charged depends on the level of service provided. For example, if you want just a simple payroll system, then you will pay less than if you require additional functionality such as automated enrolments.
If you are interested in finding out more about payroll outsourcing, contact us today!