What to compare, and what not to
The per-payslip rate is the number everyone quotes and the least useful thing to choose on, because the spread across reputable providers is a couple of pounds. What actually differs:
What is included. Auto-enrolment assessment, re-enrolment every three years, P60s, P11Ds, starters and leavers, statutory pay calculations. Any of these can be extra.
The liability clause. Most bureaus limit liability to their fees. Your exposure to HMRC penalties is unrelated to what you pay them.
Continuity. Who runs your payroll when your usual processor is away, and do they know your business?
Three questions before you sign
- What is the all-in monthly cost for our headcount, including everything?
- What is your liability if a submission is late, and what insurance do you carry?
- Is auto-enrolment assessment and re-enrolment inside the fee?
Red flags
- A per-payslip price quoted without asking about pay frequency, pension scheme or statutory pay.
- Auto-enrolment described as a setup task rather than an ongoing obligation.
- No named processor and no stated cover arrangement.
- An engagement letter with a liability cap and no professional indemnity insurance behind it.
- No proactive communication about the April threshold changes. Ask to see last year's client note.
When to bring it in-house
Payroll comes back in-house when headcount passes roughly fifty and a part-time payroll administrator becomes cheaper than the bureau fee, or when you need same-day changes that a monthly cycle cannot accommodate. Both are real reasons.
Below that, outsourcing is usually the better value, and the reason is not the arithmetic. It is that the person who understands your payroll should not be the person who also does everything else and is on annual leave in the week the figures are due. If payroll runs when nobody is thinking about it, it is working.
Where the underlying question is about contracts, status or dismissal rather than processing, the employment solicitors shortlist is the right page.