Payroll outsourcing is when an organisation hands over the responsibility for payroll, along with the associated administration and data handling to a third-party service provider. These providers employ trained payroll professionals to handle payment processing, reporting and administration.
Outsourced payroll you don't have to double-check
Payroll people you can rely on
Payroll has one main job: be right, every time. Miss a deadline or misjudge a tax code and it's not a system error; it's someone's rent payment. Ciphr's outsourced payroll service puts a dedicated UK-based team of payroll experts on that job, in your corner and on your side, so pay runs happen properly without you carrying the risk yourself.
This is a service, not software you learn to operate. You get named people: a payroll administrator, a payroll manager, and a second administrator held in reserve, all working from your data and your process. That service can sit alongside Ciphr's HR software, so the numbers your team reports on match the numbers that were actually paid. But the reason it works is the people behind it.


Five good reasons to outsource your payroll
- A dedicated outsourced payroll team can cost less per employee than running an equivalent team in-house
- Pension auto-enrolment is set up to match your scheme provider's exact requirements
- Payroll cut-off falls closer to payday, giving you more time to catch and fix issues before anyone's paid
- Every pay cycle includes built-in review points, so you get more control with less admin
- It frees your HR team to spend time on strategy instead of processing
Built and run by UK payroll experts, for UK organisations
A global platform adapted for the UK market doesn't feel the weight of an HMRC deadline the way a UK-based team does. Ciphr's outsourced payroll service is delivered entirely by our own people: 20+ UK-based payroll experts, and every single one is a CIPP member who undertakes regular ongoing CIPP training. Your data is under UK GDPR and the Data Protection Act, by a team that understands what an in-year HMRC update means for your next pay run.
That's what UK organisations who outsource payroll can rely on: not a system you're handed, but specialists who live and breathe UK payroll legislation and run it on your behalf.
20+ UK-based payroll experts, all CIPP members
HMRC-recognised and RTI-enabled
UK government G-Cloud approved
Bacs-approved bureau
Cyber Essentials Plus accredited
ISO 27001 accredited and externally audited
Data hosted and stored in the UK only
"Choosing Ciphr payroll bureau services with HMRC recognition, providing a range of services in payroll, benefits and pension administration from a team of friendly, well-trained and experienced payroll professionals… was easy! "
The Chartered Institute of Public Finance & Accountancy
Payroll bureau services that flex to how you work
Not every organisation wants to hand over payroll end-to-end, and this service is built around that choice. That’s why Ciphr's payroll bureau service lets teams pick the level of support that suits them:
- Full end-to-end outsourced managed payroll processing
- Payroll processing up to Bacs submission
- Bacs and filing-only service
- Bacs-only service
Whichever level you choose, you're assigned a dedicated payroll administrator, a payroll manager, and a third administrator held in reserve for three times contingency. If one person is unavailable, your payroll still runs on time, because your whole setup is documented in a payroll procedures manual, reviewed and kept current every month by the people who use it.
We support organisations from 50 to 2,500 employees, and we review your current process with you before assigning your dedicated team.
Getting started is a managed handover,
not a leap of faith
Moving payroll to a new provider is the moment HR and finance teams worry about most. With Ciphr, a named team guides that handover from day one, rather than leaving you to work it out.
- You send your data across through our secure portal
- We process it and run our checks and balances
- You review and approve the output before anything is submitted
- We complete the cycle: RTI submitted to HMRC, contributions uploaded to your pension provider, and Bacs files processed
- You receive your payroll reports, job done
All data runs through our secure portal, and all communications are through our customer care portal. So sensitive pay data never sits in an email inbox, and it's the same people each cycle, not a different case handler every time you call.
Precision you can set your clock to
We process over £2.4 billion in Bacs payments every year, backed by a combined 400 years of experience across our payroll services team. That's not a claim about a system; it's a team that has run payroll through almost every scenario a UK organisation can throw at it, and built the checks and balances to match.
Pensions and year-end, handled as part of the service
Pension administration isn't a separate quote; it's built into your outsourced payroll service from the start. You tell us who’s enrolled and opted out, and we process and upload data to your pension provider.
The same team takes care of payrolling benefits-in-kind, plus year-end tasks like tax clear-down, P60 production, and P11Ds. So your own people aren't reconstructing a year's worth of payroll data under deadline pressure.
Backed by connected data, not a separate system to manage
Where an organisation also runs Ciphr's HR software, this service can work from that same data set. Where you don't, the service stands on its own: you don't need to be a Ciphr software customer to use Ciphr's outsourced payroll.
This is HR (and payroll) amplified
One connected suite. Built to make work, work. For HR directors who need payroll they don't have to police, and CFOs who need numbers they don't have to double-check. , Ciphr's outsourced payroll service gives you more control over complexity, not more of it, and a team behind that control rather than a login and a manual.
FAQs: outsourced payroll and payroll bureau services
Organisations outsource payroll to save time and money, make sure employees are paid accurately and on time, ensure their compliance with tax and employment laws, and remove the administrative burden of running payroll in-house. For many organisations, that also means lower overheads and fewer compliance risks.
Look for a provider whose team can support your organisation's size and complexity while maintaining compliance with tax and employment law. Check for strong IT and data security (ISO certification matters here), responsive customer support, and testimonials from existing customers.
Outsourced payroll is typically priced per payslip, based on the complexity of your payroll, your employee numbers, how many pay runs you process each period, and the level of support you need from your provider's team.
A payroll bureau is a partnership between your in-house payroll team and an outsourced provider's team. You keep control over the processes handled in-house, while the bureau's specialists provide an extra layer of checks and balances, so together you get payroll done properly.
A payroll bureau team maintains your employee data, calculates payroll, and can be registered as an agent on an organisation's behalf to submit RTI data and PAYE payments to HMRC. It will typically also distribute payslips and pay your employees through the Bacs service.
Bacs (Bankers' Automated Clearing Service) is a body run by UK banks that manages a three-day process for transferring funds between UK bank accounts.
Once you've completed the 'Authorising your agent' form (64-8), your payroll bureau team can receive tax notices, such as tax code changes, on your behalf. They can also submit your FPS and EPS on or before payday, keeping your HMRC reporting compliant.
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