Managing payroll can be a time-consuming and complex task for businesses, especially as they grow, and the number of employees increases. Fortunately, there are a variety of payroll software solutions available to help streamline the process and reduce the risk of errors.
In this guide, we’ll take a look at what a payroll software is, the key features to consider when selecting a payroll software for your business, it’s benefits and how to choose the right package for your business.
What is Payroll software?
Payroll software is a computer program designed to automate and streamline the process of calculating, processing, and managing employee payslips and related financial transactions.
It can be used by businesses of all sizes to help ensure timely and accurate payroll processing, and to reduce the risk of errors or compliance issues related to tax laws and regulations.
Features of a payroll software
1. Stores employee data
Payroll software is a great place to store all of your employee data. From starting dates, salary information, and bank account details, everything that you would need to know about an employee can be stored on a payroll software.
2. Payroll Calculation and Processing
The most important feature of any payroll software is its ability to accurately calculate and process employee payslips. A quality payroll software will not only calculate payslips, but other pay calculations such as holiday accruals, sickness pay, and overtime.
3. Deduction calculations
Not only should a payroll system take care of employee’s pay, but it should also be able to handle deductions too. Employee tax (PAYE), national insurance (NI), student loans as well as other deductions need to be calculated and deducted from employee pay.
With all of the different types of deductions, this could be difficult to do manually, but payroll software can do this for you without a problem.
4. Employee payments
Once pay rates and deductions have been calculated, payroll software’s are designed with the ability to automatically release payments into the individual bank accounts of employees.
Of course, an authorised member of staff will firstly need to approve the details on the system, but once this has been signed off, payments can be transferred to the employee’s bank accounts soon after.
Though this is useful for bigger corporations, payroll software for small businesses will allow independent business owners to re-focus their attention on growing their business.
5. Produce payslips
Producing payslips for employees prior to, or on their pay day is legally required by all business. Because payroll systems will have all of the information needed for a payslip already stored in its data base, the software can produce a payslip on its own, saving you time completing this task manually.
Although some companies continue to print their payslips as hard copies, most business owners are providing their employees with electronic payslips for accessibility purposes.
Nowadays, most payroll systems allow employees to login to a personal dashboard and retrieve their own payslips, rather than waiting for them to be distributed by management. This helps to minimise any issues of employees not receiving their payslips or being missed by management.
6. HMRC reporting
HMRC have strict protocols when it comes to the process of reporting your company’s finances. Some of the reports HMRC regularly require are full payment submission (FPS), employee payment summary (EPS), expense and benefits report, all of which need to be submitted again for the full year at payroll end.
As we’ve already discussed, a quality payroll software will produce much of this information for you, and will often have alerts set up to remind you of HMRC deadlines. As a result, it is simply just a case of submitting your reports to HMRC when the time comes
What are the benefits of using a payroll software?
Tax Compliance
One of the biggest headaches of payroll processing is ensuring compliance with tax laws. Payroll software should automatically calculate and withhold the correct taxes, generate necessary tax forms, and stay up to date with any changes in tax regulations.
Employee Self-Service
Allowing employees to access their own payroll information and make updates (such as address changes) can save HR staff time and reduce errors. Having a payroll software that offers a self-service portal for employees will help to achieve this.
Integration with HR and Accounting Systems
Payroll software is most effective when it’s integrated with your other HR and accounting systems. Look for software that can easily import and export data from your existing systems to avoid double-entry and ensure accurate record-keeping.
Reporting and Analytics
Payroll software should offer robust reporting and analytics features, including the ability to generate reports on payroll taxes, employee earnings, and more. Look for software that offers customizable reporting options to suit your specific needs.
Mobile Accessibility
In today’s fast-paced business world, many employees work remotely or on-the-go. Payroll software with mobile accessibility can help ensure timely and accurate payroll processing, even for remote workers.
How to choose the right payroll software
1. Identify your needs
Before you start looking for payroll software, make a list of the features you require. For example, do you need to calculate taxes and deductions automatically? Do you need a system that can handle multiple pay rates or shift differentials? Knowing what you need will help you narrow down your options.
2. Ease of use
Look for a software that is easy to use and navigate. It should have an intuitive interface, so you don’t need to spend too much time learning how to use it. Looking at reviews or demoing the software before purchasing can help with this.
3. Integration
If you already use other software such as HR, accounting, or timekeeping, you may want to choose payroll software that can integrate with your existing systems. This will help you avoid duplicating data entry and streamline your processes.
4. Security
Payroll information contains sensitive data, such as social security numbers, salaries, and personal information. Ensure the software has the proper security features, such as encryption, multi-factor authentication, and regular updates, to protect your information.
5. Scalability
Choose payroll software that can grow with your business. As your business expands, you may need additional features or more users. Ensure the software can accommodate your needs as your business evolves.
Payroll software at DCS
Selecting the right payroll software for your business can save time, reduce errors, and ensure compliance with tax laws. By considering the key features outlined above, you can find a payroll software solution that meets the unique needs of your organization.
At DCS, Pegasus Opera 3 comes as part of our accountancy software range. As well as being a stand-alone payroll system, the Pegasus Opera business solution can be a full accounts package with many modules available to fully integrate all aspects of your business. From finance, business intelligence, CRM management, service and helpdesk management, everything will be available to use in one comprehensive system.
Pegasus Opera also features customisation, configuration, and setup options, allowing you to build a solution perfect for the needs of the construction, manufacturing, and supply chain industry.
If you’d like to speak to a member of our team about integrating Pegasus Opera 3 into your business, or discuss any of our other accountancy software, you can call us on 01937 541411 or fill out a contact form here – https://www.deansplc.co.uk/contact-us/. Our team will be delighted to help!