After onboarding a new employee, the HR professional does not have to contend with payroll tasks. But since the HR department will have to deal with employees' complaints regarding their salaries, it is essential that you make sure they are paid correctly and on time.
Tugela People recommend having a system that consolidates employee payment processes and makes the business compliant with HM Revenue and Customs (HMRC) requirements and regulations.
Many HR software solutions include a payroll module, although their features may differ. If you're considering getting payroll software, look for a provider that will help you integrate it into your HR system. This setup would be ideal because you can customise it to reduce the number of small tasks that take time to accomplish. It can make the onboarding process faster and smoother, and ensure that the employees will be paid accurately and on time. An excellent choice would be robust payroll software that has regular updates on tax laws so your company can comply with new regulations quickly.
Significant features of a payroll software
You are planning to use payroll software because you want to streamline some of your administrative tasks. Choosing the program with the most fundamental features can improve your company's systems and administrative processes.
Processing of payroll
This is the most essential feature. The payroll software should be able to process the different aspects of payroll management, including pay rates for overtime and timekeeping.
Direct deposit
Some employers pay with paper cheques, while others use the direct deposit method. Many payroll software today can connect with the bank to distribute salaries directly to the bank accounts of employees. The feature helps minimise the occurrence of lost payments and mistakes.
Help with tax filing
As you are a registered HMRC employer, you have an Accounts Office reference and PAYE reference number. You are obliged to report the payroll tax collected from your employees each pay period. With the personal information of your personnel inputted into the payroll system, it automates the process and prints out the report for submission to HMRC on time. It eliminates the chance of being penalised for late reporting.
Ensures compliance
Tax laws are complicated as they are and it becomes more confusing as new regulations are implemented. With robust payroll software, you can be sure that the system will update regularly, so you remain updated and compliant with new tax regulations.
Self-service
Your managers and employees can log on to the system and check their payroll status 24/7. They can make changes to some of their information, and know how much they will receive if they are planning to make a big purchase.
Automate menial tasks
Payroll employees do many small tasks to compute the actual salary each employee will receive each pay period. For the regular employees, the tasks are simpler. But with hourly-paid workers, there are more things to consider. Aside from the pay rate, they have to compute the actual work hours and fraction thereof the employee rendered. They have to consider overtime pay, financial and non-financial benefits, bonuses, incentives, insurance, loans, taxes, and paid leaves.
With payroll software, these tasks will be automated. When combined with other HR systems and timekeeping, the system can make the process faster and more accurate, and you are sure that your employees are paid the exact amount. Moreover, the payroll software will generate the payslips, based on the inputted data, which will reduce the number of questions from employees about the amount they received.
There could be a bit of a learning curve when implementing a new payroll system especially if it is a cloud-based platform. The payroll software vendor provides training so it is not going to be difficult. Once the system is up and running you and your employees will realise that the investment is worth it.