MHR offers versatile payroll solutions, whether you prefer to process payroll in-house or outsource it. While the features and benefits are well-documented, it’s essential to understand the price tags involved. Here, we delve into the estimated costs associated with MHR’s software and outsourcing services to give British businesses a clearer picture.
MHR payroll costs
| Service Type | Cost Component | Estimated Cost Range (£) |
|---|---|---|
| Software | Initial Setup Fees | £0 – £1,500 |
| Licence Fees | £100 – £500 per year | |
| Software Updates | Included | |
| Add-ons & Modules | £50 – £200 per year | |
| Outsourcing | Fixed Monthly Fees | £200 – £1,000 per month |
| Transactional Fees | £1 – £3 per payslip | |
| Additional Services | £200 – £1,000 |
MHR iTrent payroll software pricing
While the costs can vary based on your specific needs and the package you select, here is a rough guide to what you can expect.
Initial setup fees
You may incur a one-time initial setup fee ranging from zero to £1,500 depending on the level of customisation and training required, and whether you need to import a lot of historical employee data.
Licence fees
Licence fees generally range between £100 to £500 per year. Some packages may offer discounts for larger numbers of employees.
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Software updates and maintenance
Updates and maintenance ensures your software stays compliant with tax laws and other statutory requirements. The cost is usually included in the annual licence fee.
Add-ons and modules
Specific modules like HR analytics or timesheet functionalities can add another £50 to £200 annually, depending on your requirements.
MHR payroll outsourcing services pricing
Outsourcing payroll comes with its own set of cost structures. Here are some estimated expenses:
Fixed monthly or annual fees
The fixed fee for outsourcing can range from £200 to £1,000 per month for small to medium-sized businesses, and up to £10,000 for large enterprises.
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Transactional fees
Expect to pay approximately £1 to £3 per payslip, per employee. If you have a high number of employees, this can add up.
Additional services
Custom reports, year-end processing, and other add-on services can incur extra costs ranging from £200 to £1,000.
Other factors affecting the cost decision
Your decision shouldn’t be based solely on price, but should also consider the following:
Company size
Larger companies with complex needs may find in-house software to be more cost-effective in the long run, whereas smaller businesses may find that outsourcing offers better value.
Complexity of payroll
If you deal with variable pay, benefits, or multiple currencies, the complexity can tip the scales in favour of outsourcing, even if it seems costlier initially.
Skillset
The need for skilled staff to manage an in-house system is a hidden cost that must be accounted for.
Time
The time spent managing an in-house system is an additional cost to consider. Outsourcing can often be a time-saver, allowing internal teams to focus on core business activities.
Closing words
While both in-house software and outsourcing come with their own sets of costs, understanding these can help British businesses make an informed decision. Whether you go for MHR’s payroll software or opt for their outsourcing services, your choice should align not just with your budget but also with your operational requirements and business goals.
FAQ for MHR payroll costs
Always read the terms and conditions carefully. Some services might have additional fees for customer support or data migration that are not included in the initial quote.
Prices are generally fixed, but there could be room for negotiation, especially if you are committing to a long-term contract or have a large number of employees.
Update and maintenance costs are usually included in the annual fee, but it’s best to confirm this when you’re negotiating your contract.
Generally speaking, the cost per employee can decrease as you add more employees due to volume discounts, both for software licences and outsourcing services.
The most cost-effective option depends on various factors like your company size, payroll complexity, and internal expertise. Both options have pros and cons that need to be considered alongside their respective costs.