WHAT IS PAYROLL SOFTWARE?
By definition “Payroll Software” is software designed to organise all the tasks associated with employee payment and the filing of employee taxes. Online payroll software allows you to manage and run your payroll from anywhere with an internet connection.
WHY SHOULD YOU USE PAYROLL SOFTWARE?
Payroll software requires very little input from the employer. All you need to do is input the wage information and hours, and the software will calculate tax and pension deductions automatically.
There are other benefits like:
- Eliminates payroll process errors.
- Eliminates the need for manual calculations.
- Eliminates the expense of hiring someone for payroll processing.
WHAT SHOULD YOUR PAYROLL SOFTWARE INCLUDE?
Whichever payroll software you choose, it will help complete tasks such as:
- Recording your employees’ information
- Calculating your employees’ wages and deductions
- Calculating your contribution as an employer.
- Calculating SSP (Statutory Sick Pay) and Maternity pay.
- Reporting payroll information to HMRC with RTI.
The payroll software you choose should also include features like:
- Generating payslips for your employee’s.
- Calculating and recording pension deductions.
- Making pension payments.
- Multiple payment schedules. Eg, pay some employees’ weekly and other’s monthly.
- Send EPS (Employer Payment Summary) and EYU (Earlier Year Update) reports to HMRC.
- Integration with accounting and other software.
WHAT SHOULD YOU CONSIDER WHEN CHOOSING THE BEST PAYROLL SOFTWARE FOR YOUR BUSINESS?
We’ve put together a list of all the factors you should consider when choosing payroll software for your business.
1. Consider the features included with the software.
- Does the software offer the features you require to do your payroll processing effectively?
2. Consider the software’s ease of use.
- Is there a big learning curve?
- Do you need training to operate the software?
- What software support is provided?
3. Consider the software’s credibility.
- Has the software got a good or bad reputation? (We suggest you do some research.)
- Is the software recognized by HMRC?
- Click here to find HMRC Recognized Payroll Software
4. Consider the software’s integration capabilities.
- Does the software integrate with your accounting software?
- Does the software integrate with your employee benefits offerings?
- Can it be integrated via a third party integrator?
5. Consider the software’s security measures.
- What security measures are taken to keep your business’ payroll data secure?
6. Consider if the software is flexible and scalable.
- Can the software support your business as it grows?
- Does the software have the flexibility your business needs?
OUR 3 FAVORITE PAYROLL SOFTWARE SERVICES!
1. BrightPay – Free
BrightPay is perfect for self-employed or micro businesses because they have a huge list of features and they offer a free package for up to 3 employees. They offer video tutorials, guides and webinars to help you get the best out of their software. BrightPay also has great software support and are always happy to help you.
Kashflow’s payroll software is great for a small business and is packed with all the features you need, including company management and auto-enrollment. The software offers great flexibility with integration and scalability allowing space for your business to grow.
Ceridian is a great software for medium-sized businesses and will support more than 500 employees. The software is feature-rich with added benefits like HR and Time & Attendance solutions to improve your payroll processes. There is no price available on the website, so you have to request all the information.