Skip to main content
background image background image

In the ever-evolving landscape of recruitment, staying ahead of the game often means re-evaluating and enhancing internal processes.

One area that has gained increased traction is payroll outsourcing as a strategic solution for many recruitment agencies. In this blog, we’ll dive into the ins and outs of outsourced payroll, exploring what it is, how it works, key considerations, and the many benefits it brings to recruitment agencies.

What is outsourced payroll?

Outsourced payroll involves delegating payroll responsibilities to an external service provider such as a specialised payroll company. The payroll company is then responsible for taking charge of tasks such as salary calculations, tax deductions, and compliance with labour laws on behalf of the recruitment agency. Outsourced payroll helps remove the burden of complex and time-consuming payroll processes and enables agencies to focus on what matters most to their business – growth and success.

Male professional smiling, and on the phone at his desk

How does Bar2 payroll outsourcing work?

  1. We collect the employee's salary from the client and input the data into our system.
  2. Any adjustments, such as bonuses, holidays, expenses, and net deductions, are meticulously entered into our system.
  3. Our team of experts conducts a pay run, ensuring accurate calculations, and distributes payslips to contractors.
  4. Payroll reports are securely stored for record-keeping purposes.
  5. We submit Real-Time Information (RTI) to comply with regulatory requirements.
  6. The client receives comprehensive payroll reports detailing all transactions and financial information.
  7. We generate and present the monthly fee invoice to the client for our services.

Who we help

What to consider when outsourcing payroll

While the benefits of outsourcing payroll are endless, recruitment agencies should carefully consider the following factors before selecting a payroll service provider:

  • Reputation and Reliability: You must select a payroll outsourcing provider which holds a solid reputation and track record of reliability in the industry.

How? You can research a company’s reputation by reading customer reviews, industry news or by visiting a company’s website or social media to underpin their brand image.

  • Data Security: You must ensure that the payroll outsourcing provider adheres to robust data security measures to protect sensitive employee information.

For example, by conducting regular security audits and monitoring to identify and address potential vulnerabilities or, having employee training and awareness 

programs in place to help employees recognise phishing attempts and reduce the likelihood of human error-caused security breaches.

Learn more about our Cyber Essentials Plus certification.

  • Compliance Expertise: You must verify that the provider has a deep understanding and knowledge of local and industry-specific payroll regulations to avoid legal pitfalls.

How? You can do this by reviewing case studies, seeking legal advice from employment law specialists to review the provider's terms and conditions or, by assessing the technology and software used by the provider to outline any advanced systems that incorporate compliance checks.

With over two decades of experience in payroll services and compliance, we assure you peace of mind.

  • Scalability: Opt for a solution that can scale with your agency's growth, and that accommodates changes in the number of employees and complexity of operations.

Outsourced payroll Vs Contractor payroll

Outsourced payroll

  • With payroll outsourcing you contract with your temp
  • We do not pay the worker directly
  • We do not deal with the tax withholding and benefits administration. Instead, clients are responsible for paying their own taxes and providing their own benefits

Contractor payroll

  • With contractor payroll we contract with your temp
  • We pay the worker directly
  • We handle all aspects of payroll processing, including tax withholding, filing, and reporting
Male happy construction worker

Benefits of Bar2 Outsourced Payroll

  • Time and Cost Savings: Outsourcing your payroll responsibilities to Bar2 allows you more time to focus on core business functions, and reduces operational costs as there is no need to employ an internal payroll team.
  • Competitive price: At just £6 per payslip, our service offers exceptional value without compromising quality.
  • Same-day pay corrections: Benefit from same-day payments and flexibility with our average total turnaround time of 4 hours.
  • Expertise you can trust: With over 20 years of experience, our team ensures accurate, timely, and compliant payments every time. Rest assured, our expertise in payroll services and compliance guarantees your peace of mind.
  • Reduce admin burden on your business: Wave goodbye to banking fees, payslip costs and managing your contractors pension as we take care of all of this for you!
  • Offering a range of pay frequencies including weekly, monthly, hourly and salary pay
  • Advanced technology and systems built for scale
  • Issuing of user-friendly payroll reports: We issue a P32 Report, Post Payroll Report, Analysis of Totals Report & a post payroll report which can be easily used to generate salary journals
  • Service backed by a team of skilled professionals: ensuring seamless coverage even when someone is on annual leave. Rest assured, we've got you covered at all times!
  • Simple and transparent payslips for contractors: leaving you with happy and satisfied contractors
  • Ability to run multiple payrolls at once
  • Pension administration
  • Dedicated Account Manager
  • Flexible with adjustments

Short on time?

Uncover the benefits of Bar2 Outsourced Payroll in our short video overview.

Bar2 Outsourced Payroll benefits

Payroll doesn’t have to be overwhelming

We’ve got you covered with our Outsourced Payroll service, streamlining each of your internal payroll needs.

Who we help