Written by Alison Clynes
Published on July 28, 2010

The more we have developed as a society, the more complex paying wages has become. Before the Industrial Revolution people generally got paid for what they produced and took to market. If you worked for someone else you got bed and board and whatever the employer choose to give you. Once the factories and mills opened the idea of piece work was introduced, again you were paid for what you produced but working out the wages became the job of one of the clerks.

Within the last century with the inception of the National Health system every employee had to contribute from their earnings, and every employer had to contribute too. Of course taxes collection on earnings became payable through the employer as PAYE, all this administration meant setting up in house departments who's remit was simply to pay wages, rather than consulting payroll outsourcing services. This cost the employer and therefore the business.

With the legislation about wages and the complications of the PAYE system payroll services were one of the first areas that larger organisations and businesses looked at when trying to reduce overheads over the last decade or so. Payroll outsourcing meant that money could be saved and the responsibility for payments to workers and all the right government departments could be handed over to an external supplier leaving the businesses free to concentrate on business. Here at Dataplan Payroll we are finding that smaller businesses are also delighted to hand over their payroll requirements because it makes so much sense to leave it to the experts.