Outsourced Payroll

At Diamond Outsourcing, we understand the complexities and time-consuming nature of payroll management. That’s why we offer top-tier outsourced payroll services, designed to streamline your operations and let you focus on what you do best – growing your business.

Fortunately, outsourcing payroll is relatively straightforward. It’s one of the most commonly outsourced financial processes because it’s complex, technical work.



Our outsourced payroll is about more than just processing payments. We offer a comprehensive solution covering everything from managing deductions to issuing electronic payslips under your branding. We are well-versed in HMRC’s statutory requirements and ensure they are meticulously applied, including the management of staff pension deductions and auto-enrolment pension schemes. Opting for a fully managed payroll service ensures that businesses can enjoy peace of mind with the knowledge that their payroll is handled by experts, offering reliability, compliance, and tailored services.

Our team is proficient with various systems, from Quickbooks to Xero and Sage, and we adapt our processes to suit your needs, ensuring a seamless and straightforward experience with the support of a dedicated payroll provider.


Advantages of Outsourced Payroll:

  • Accuracy: Ensuring compliance with tax laws and calculation of employee pay.
  • Efficiency: Streamlining the payroll process for faster turnaround times.
  • Cost-Effective: Reducing the need for in-house payroll staff and IT infrastructure.

The right provider offers a range of services from basic payroll processing to a more comprehensive payroll outsourcing package, including handling of HMRC reporting and pension contributions.

As outsourced accounting service specialists, we are able to ensure that your payroll outsourcing is a smooth process and no interruptions arise.



We are proud to be BACS approved and recognised as an official payroll bureau. As a payroll bureau, we specialise in providing outsourced payroll to other firms. We can liaise with HMRC on your behalf, ensuring all your payroll needs are dealt with accurately and promptly. By acting as your external payroll department, we bring the satisfaction and efficiency of having a dedicated team without the overhead of an in-house payroll department.

With Diamond Outsourcing handling your payroll, you can enjoy peace of mind knowing that you have a clear audit trail and the confidentiality and professionalism you expect.


With Diamond Outsourcing on board it has freed up my time. I no longer work evenings or weekends, I have more time with the family, I have left my 9 to 5 job. I concentrate on the areas of accountancy I love whilst they do the rest. We have an aligned vision to grow my practice and through help and mentoring we are growing together day by day!

— Janielle, Kent

Four easy steps

Our process is straightforward and transparent

step one


Our UK management team will work with you to set up goals and processes – who is responsible for what and how it will work in practice.

step two


We'll brief the overseas audit team and get you connected. You'll manage them directly but can call on us whenever you need to.

step three


The audit processing team will work through the tasks you set them, from reviewing accounts to running audit tests.

step four

Results review

They'll present outputs on the agreed schedule and we'll check in with you to confirm you're happy with the results.

Our Outsourcing Payroll Guide


Why Choose Payroll Outsourcing Services?


Operational Efficiency and Cost Savings

When organisations consider outsourcing their payroll, operational efficiency is often a prime motivator. Outsourced payroll can streamline processes, ensuring that tasks related to payroll management are handled effectively. Many companies have found that outsourcing the payroll function is a strategic move that unlocks cost savings and ensures regulatory compliance. Opting for managed payroll services can further enhance operational efficiency and cost savings, providing a comprehensive solution that handles all aspects of payroll, allowing businesses to focus on their core operations.

Utilising managed payroll solutions can be a way to navigate financial constraints. Such solutions can offer significant savings compared to maintaining in-house systems. With the cost for SMEs outsourcing payroll ranging from £2 to £25 per employee per month, the financial predictability can be advantageous. This uniform cost replaces the variable expenses of purchasing and upgrading software and managing payroll internally.

Cloud-based payroll solutions contribute to efficiency and cost savings. By moving to the cloud, businesses can forgo the need for extensive on-premise infrastructure. Additionally, the reliance on dedicated IT resources is reduced, contributing to further savings. This could result in cost reductions of 18-33% compared to in-house operations.


Growth and Scalability

When businesses experience growth, their operations need to scale accordingly. This includes the ability to manage an increasing headcount, which brings the payroll process into sharp focus. Outsourced payroll software is a key component that supports business growth and scalability.

A competent outsourced payroll solution provides flexibility to adapt to changing needs. As a company expands, it must handle a larger volume of payroll transactions, more complex tax compliance, and potentially multi-country regulations. Outlined below are factors that suggest payroll outsourcing is suitable for scalable growth:

  • Adaptiveness: Effective payroll software accommodates changes in employee numbers without compromising on service quality.
  • Cost-effectiveness: It offers a variable cost structure that aligns with the size of the workforce, avoiding unnecessary expenditure on in-house resources.
  • Regulatory compliance: With expert systems in place, outsourced solutions stay current with the latest tax laws and regulations, essential for businesses expanding into new territories.
  • Efficiency: By automating processes, these systems reduce the time and effort required to conduct payroll activities, thus supporting the company’s expanding operational demands.

For example, companies that use scalable payroll software specifically designed for accountants can manage a diverse range of client requirements.


The Payroll Outsourcing Process

When you outsource payroll, accuracy and efficiency are key. Our process ensures that every aspect of payroll management is handled effectively to provide peace of mind for your business. This attention to detail significantly reduces the risk of payroll errors, ensuring the accuracy and reliability of our service.

Contrasting this with the challenges of managing payroll in house, where businesses often face financial losses due to payroll errors, the complexity of compliance management, time-consuming processes, costs associated with payroll management, and the need for specialised resources to handle payroll effectively.

Our ability to process payroll for specific sectors with special attention and specialist teams allows businesses to focus on other areas of their HR operations, ensuring a comprehensive and tailored payroll service.

Initial Setup and Data Collection

At the onset of our services, we initiate the Initial Setup and Data Collection phase. This involves collecting comprehensive employee data which forms the backbone of the payroll process. We gather information such as personal details, tax codes, and banking information. This information is used to set up individual employee profiles in our payroll system to ensure that each person is paid correctly and on time.

Regular Payroll Processing

During the Regular Payroll Processing stage, our payroll processes manage the monthly cycle of calculating payments. This encompasses the calculation of gross wages, the deduction of taxes and National Insurance, and the provision of payslips to each employee. Our dedicated team guarantees statutory compliance in every payslip generated, reflecting accurate tax and pension deductions, thereby enhancing employee satisfaction, retention, and overall workforce morale through the benefits of automation and reduced errors associated with our payroll processes.

  • Gross Pay Calculation: Determining the correct wages for each employee, including overtime, bonuses, and commission.
  • Deductions: Itemising and deducting the appropriate tax, National Insurance contributions, and other statutory items.
  • Net Pay: Calculating the final net pay to be disbursed to employees.

Handling Staff Changes and Leavers

Changes within your team are inevitable. When an employee leaves, we issue necessary documents such as P45s, update our records, and adjust the payroll accordingly. New starter details are integrated seamlessly, ensuring they are added to the payroll system without delay.

  • New Starters: Set up new employees with the correct tax codes and payroll details.
  • Leavers: Process final payments and issue P45s, while updating our systems to reflect the change.

Reporting and Analysis

Finally, the Reporting and Analysis phase encompasses the creation of detailed payroll reports for your review. These reports highlight essential information including monthly payroll summaries and year-end documents such as P60s. Our analysis aids in identifying trends and potential cost savings, giving you insight into your payroll expenses.

  • Monthly Reports: Provide transparent breakdowns of each payroll cycle.
  • Year-End Reports: Preparation and delivery of P60s for all employees, summarising the annual payroll data.


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