Payroll is a critical business operation for all organizations- employees must be paid regularly and accurately.
An efficient computerized payroll system will help you:
- Determine quick calculations of payroll
- Produce pay-slips and send income tax returns
- Automate some tasks like year-end reports
- Store data like pay slips and annual reports in a safe manner
Payroll software can in addition, reduce the burden of comprehending complex legislation regarding payroll and operation of payroll system. This may lower administrative costs.
While it is still feasible for manual running of payroll, companies can select from a wide array of computerized payroll systems that can aid in automating payroll tasks.
Payroll software or computerized payroll systems come in two main forms:
- Payroll software which is installed into a computer
- Online payroll software or cloud based systems which you can access over the net using a web browser.
A basic package will restrict payroll details into a single computer. There is limited functionality of such packages. For instance, calculations may be done by the software but it cannot process pay-slips. Hence you will need to supplement this with manual work. In case you are utilizing payroll software on one single machine, you must keep the machine suitably backed up and secure, else you will lose valuable data.
They do remote storing of data, so you can access the system from various locations using a secure log in. Most of the online systems will completely automate your payroll process and include details like:
- National pension and insurance deductions
- Calculations of tax
- Production of pay slip for tax
- Adhering to legislation
- Generating tax returns of the year
You may be going in for basic or advanced software. But it is vital to ensure that your calculations must be relocated to your business accounting system. The figures may be entered manually, but a simpler option is to select payroll software which is compatible with existing software for accounting. You must consider carefully all technologies and tools to find the best fit for your business.
Who requires payroll software?
All businesses do not need payroll software. If a business is small and faces no complications, manual payroll calculations can be straight forward.
Whether you require basic payroll software depends mostly on the size of your company. It is possible to conduct payroll processing manually in a small business, software can help you:
- Keep updated on changes in allowances and rates
- Speed up calculations of your payroll
- Send completed forms and reports electronically to the govt. revenue agency
- Prevent errors
Managing pay-roll in-house
While selecting among manual processing of payroll or computerized system, you must also weigh:
- Expertise available to your business: consider yourself whether it is simpler to train someone to carry out the calculations manually or to run the payroll software
- Continuity of your business: If you are depending on payroll software, you will require plan support, disaster recovery plans, and back-ups of data for your system.
In the event of an emergency, it is possible to revert to a manual system, but remember that by using payroll software, you are becoming dependent on your computer.