UK payroll services: what to look for in a provider

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Managing payroll is a critical function for any business, whether you're a growing start-up or an established enterprise with workers in multiple locations.

The UK’s tax regulations, employment laws, and real-time reporting requirements make payroll a complex and highly regulated process.

For companies navigating domestic growth or planning to expand operations internationally, finding a trustworthy payroll partner is essential.

The global payroll market is an industry experiencing rapid growth. In 2023, it was estimated to be worth USD 98.5 billion. It is projected to hit USD 133.69 billion by 2028.

In a crowded market, it can seem impossible to know how to select the right payroll provider to help you with employing staff overseas, paying international employees, or managing a remote workforce.

So, let’s examine the key features and considerations needed to select the right UK payroll service partner for you.

For more information on global payroll, visit our Ultimate guide to global payroll.

HMRC compliance

The very first checkpoint is ensuring the provider is HMRC-recognised and adheres to Real Time Information (RTI) requirements for PAYE submissions. Compliance with UK tax regulations and auto-enrolment pension schemes is mandatory. Non-compliance can lead to serious penalties, including reputational damage, fines, and more serious legal proceedings.

If your company is paying wages to overseas employees or navigating the nuances of global compliance services, then you need to make sure that you are partnering with a provider that is familiar with international payroll intricacies and global regulatory compliance.

It is crucial to seek out providers offering a global reach who understand concepts such as permanent establishment (PE) and how to work alongside a PEO (Professional Employer Organisation) or EOR company (Employer of Record).

Global payroll accuracy and reliability

As a business, you know that maintaining employee trust is paramount to ensuring a satisfied, dedicated workforce. Therefore, errors in payroll are not an option. A trustworthy payroll provider will have strict quality control processes to ensure timely, accurate pay calculations, proper deductions for tax, NI, pensions, and other statutory obligations and reliable payment schedules.

Be sure to ask potential providers about their error resolution policies, whether they offer compensation for mistakes, and how quickly they rectify discrepancies. For firms with remote employees or those engaging in payroll work from home, seamless digital processing is crucial and there should be explicit policies in place to guide these processes.

Data security and GDPR compliance

Payroll data includes some of the most sensitive information a company handles, including national insurance numbers, bank details, and salary information. As a result, data security and GDPR compliance are non-negotiable.

Make sure any prospective provider encrypts all data both, uses secure servers with regular backups, and conducts routine security audits.

This is even more important for businesses managing a global workforce or contracting with payroll outsourcing companies abroad, where varying levels of regulatory oversight may apply.

Global payroll supporting scalability

Your chosen payroll service should have the capacity to grow with your business. Whether you're an SME seeking to hire one worker overseas or a multinational planning on scaling to the next level, your payroll provider should be in a position to support you at every stage of your business plan.

An agile provider will support multiple pay frequencies, contractors, freelancers, and zero-hour workers, EOR payroll when entering new markets and onboarding support for international HR consultancy needs.

Pension and benefits integration

It is key for UK employers to manage auto-enrolment pensions correctly. Look for providers that handle communications with employees, manage opt-outs, and integrate with major pension schemes like NEST, The People’s Pension, or Aviva.

Providers should also be able to align with employee benefits platforms, and align with trends from global HR consulting firms, especially if you're benchmarking your offering against multinational standards.

Employee online platforms

Modern payroll services should empower employees with self-service capabilities to access payslips, P60s and P45s, annual leave balances and tax information.

Self-service portals reduce administrative burden and streamline everyday processes, thereby increasing employee satisfaction.

Mauve Group’s online platform, Mauve Insight, is vital for remote work employees and distributed teams, providing 24/7 access to and oversight of worker data.

Customer support and expertise

When issues arise around things like statutory sick pay, maternity leave, or redundancy, your business needs to be certain that you can rely on responsive experts in the field. Therefore, it is important to choose a provider that has UK-based customer service, clear escalation procedures, and multiple contact options such as phone, email, and live chat – (bonus points if you have a dedicated Client Manager, like at Mauve, whom you can contact directly.)

If you are hiring overseas, it is also advisable to partner with a service that offers expertise in visa and immigration services.

Global payroll pricing transparency

Payroll services offer various pricing models, so clarity is key in order for your business to remain on top of budgets and expenditure strategies. Common structures include per employee/per run fees, flat monthly rates, add-ons for year-end processing, pension reporting, or setup fees. Ensure that all costs and extras are communicated up front.

Avoid providers with hidden fees, especially if you’re balancing budgets across global subsidiaries or paying independent contractors in other countries.

Reporting and insights

A top-tier payroll provider goes far beyond mere payslip generation. They should deliver actionable insights, including access to standard HMRC-compliant reports, customisable dashboards for audits, reports tailored for salary benchmarking in the UK, and strategic planning.

This is especially beneficial for organisations using salary benchmarking to evaluate compensation competition, or global HR teams comparing salary trends across borders.

For companies expanding internationally, a global payroll provider that also offers salary benchmarking services can hugely support your business to maintain equity and competitiveness.

Why Mauve is the payroll provider for you

Mauve Group's Global Payroll team handles the end-to-end process of paying your overseas employees, via a fully managed solution.

By outsourcing to our international payroll service, you eliminate the necessity of establishing a local payroll team in every region or purchasing specialised payroll software.

With 30 years' experience, ISO 27001 certification from the British Assessment Bureau, solutions in 150+ countries, and an innovative centralised platform, Mauve Insight, we’re here to help you to quickly and compliantly pay your overseas staff. Contact us today.