Payroll Software-How to choose
Like it or hate it, doing Payroll is an essential process in any business that employs people. Whether you pay people weekly, fortnightly or monthly, the right software can be a major part of the equation. We use Brightpay Payroll software for our clients, although other software will do some of the same things. Here we will talk you through how the right software can revolutionise your payroll process. If you have any further queries, then please let us know.
How to pick the right payroll software
Make sure it’s flexible
The right payroll software needs to be flexible. You want to be able to process on your terms. Whether it is weekly, fortnightly, monthly, 4 weekly etc. You also need the software to be flexible on the types of additions and deductions that you want to process through the payroll. This may be expenses that you want to track through payroll. It may be you need to make deductions for a loan that you have provided to staff. The right software will include this all for you with ease. Since April 2019, travel time will need to be recorded on payslips, and the right payroll software will let you record this easily.
Auto enrolment integration should be easy
By January 2017, UK Employers were obligated to set up workplace pensions for all eligible employees under The Pension Act 2008. Starting at a low rate, the rates from April 2019 are going to reach 3% for employers and 5% for employees. Without the right payroll software, this process can be lengthy and cumbersome. Even more so, if you have a large volume of employees. The right payroll software will either integrate into your pension providers portal, or let you export a CSV.
You need to assess employees each month when running payroll. Whether employees have become eligible for the pension, and how much the contributions are. When you need to enrol a member of staff into the pension, or assess that they are eligible to opt in, you also need to provide them with a letter advising what is happening. The right software will handle this all for you.
Built in calendar systems help when it comes to statutory pay
Whether it is statutory sick pay, maternity, paternity or adoption pay, the right software will be able to track these payments easily. There are a number of rules that apply to statutory payments, and the right systems can help you manage them efficiently. The best systems have a calendar system, so you can track dates of leave. This can then seamlessly integrate into that periods payroll for you. With certain statutory payments, you can reclaim the payments via your National Insurance Contributions bill. The right software will assist you with this, and let you know what you can reclaim.
Save admin time by letting employees have access to their payslips
A good payroll software will have the ability to securely provide payslips to your employees electronically. This may be via email or an online portal. Brightpay Payroll software that we use for our clients, offers email payslips with a secure password. They also offer an optional upgrade to their Brightpay Connect service.
Brightpay Connect is an online dashboard for employers and employees alike. Employees can easily access all of their payslips, P60’s, P11D’s (and when they leave can also get their P45). Not many systems offer this, however a lot do offer secure, encrypted payslips to be emailed to employees. Many services also offer their own branded stationery, if your employees require postal payslips and forms.
Lastly, make sure that’s it user friendly and is intuitive for you!
I think the most important thing, as well as any statutory requirements, is that it works well for you and your business. Different software providers offer different things, and it is about working out what is the best for you. Brightpay Connect offers employers the chance to let employees request annual leave via their self service portal. You can then approve or decline this at a touch of a button. As an employer, you can also use it to run simple to read payroll reports and it reminds you of how much is outstanding to HMRC for your PAYE bill.
Other software providers may have different things that work well for you (ie a direct link to your accounting software or other features), it is all about working out what you need, and what is the most important.
If you find that you want to outsource your payroll, to concentrate on business growth, or other business activities, then let us know. Whatever your needs, we can help. We also offer support to organisations who pay subcontractors and need to use the CIS system.