How to choose the correct payroll software to suit your business needs

There are plenty of payroll software options to choose for your business. Question is – how to select the correct fit? The answer to that question is dependent on the size and needs of your industry or business. Employees are paid on a daily, weekly or monthly basis. Choose a payroll system that is easy […]

There are plenty of payroll software options to choose for your business. Question is – how to select the correct fit? The answer to that question is dependent on the size and needs of your industry or business. Employees are paid on a daily, weekly or monthly basis. Choose a payroll system that is easy to run. I have first-hand experience in running a manual payroll, adding up hours by hand because the software the company decided to use did not have the function required for the specific tasks. This can cause delayed payments and there is a lot of room for error.

Quick tip – look for a website that suggests and reviews a few options of software packages so that you can minimize your time when searching and maximize your time to focus on your business.

Payroll software also gives you the benefit to record employee details and do quick calculations of employee deductions from their gross salaries. Some packages even have the ability to link your data to your general ledger!

According to UK Payroll requirements, employers need to calculate tax, National Insurance contributions, other necessary deductions and issue employees with payslips. Payslips may be issued online. A FPS (Full Payment Submission) report has to be sent to HMRC (Revenue and Customs) on or before payday each month. UK based employers should also have an auto enrolment compliant pension plan.

The following should be paid by the employee and deducted from the gross salary as indicated by Paul Beare.com:

  • Employer National Insurance
  • Auto Enrolled pension
  • Pay as you earn
  • Student loans (Where applicable)

For definitions and workings of the above mentioned deductions please click on the link provided for assistance.

You may consider the option of outsourcing your payroll and human resource department. Institutions assisting with these services would be able to aid with tax calculations, offer support, sending of payslips to employees and other functions. Some of the institutions that assist with outsourcing or consulting provide training as well. If you do decide to do your own payroll I would strongly suggest that training from time to time would be a great option. This will keep your staff up to date with all the statutory requirements and changes made to regulations.

Cloud based software is a great option. It is charged at a monthly rate. It allows PAYE and HMRC to run in real time. This ensures that your business is compliant with industry regulations at any time.

According to Expert market.co.uk the best cloud based payroll software to look at would be:

  • Iris Kashflow Payroll – Best for medium to large business;
  • Ceridian Dayforce – Best combined payroll and HR system;
  • My PAYE – Best for simple and affordable pricing;
  • Sage Pay – Best for easy use;
  • Advanced: Open people software – Best for broad range of software products;;
  • 12 Cloud Payroll – Best free payroll software; and
  • Payroo – Best for small business

Conclusion

Whether you choose an In-house accountant, outsourcing, online payroll or software – make sure that it is easy to use, not too costly for your organization and that it has all of the features you need to run your payroll smoothly

Photo credits: coworkinglondon.com

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