Options For Handling Payroll

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The typical reason for using a payroll app is to automate the process of making payments to a company’s employees, thereby simplifying it. This is something that has traditionally been done by hand, and the greater the number of employees, the more complex the process became, and the more time it took. 

Using A Payroll App

Automated HR management tools will handle tasks such as calculating deductions for tax and National Insurance, produce payslips and computing, and filing tax to HMRC in line with their regulatory requirements. It will also process or deposit wages into employees’ bank accounts, handle voided payments where this is necessary, and produce reports for the company. This kind of employee app to handle the process can be done in-house by the finance or HR department, or it can be outsourced to a dedicated payroll service provider. 

If you choose the right app to handle payroll, then the whole process becomes quicker, reducing the amount of administration. It can also improve accuracy by automating the process and eliminating computation errors. And that saves a business both time and money. 

It also improves staff satisfaction. Just one error in a manually issued payslip or a delay in making a monthly payment can reduce an employee’s confidence and trust in their employer. Worse than that, making a mistake in calculating tax deductions and the like can lead to serious trouble with HMRC, even fines for your business. So it’s well worth considering using a dedicated, automated payroll app, even if your company is only small.

Outsourcing Payroll 

We mentioned above that some companies may outsource the administration of their payroll application to an external firm. Many businesses may hesitate to lose control of something as important as how their staff is paid, and yet there can be numerous benefits. So what are the advantages of doing this? 

Firstly, it frees up your staff’s time and energy to concentrate on doing what they do best: the day job. Imagine if you could lose the burden of the weekly or monthly payroll, producing payslips, sorting out the occasional errors and handling staff queries about amounts received. That time could be better spent on growing and developing sales leads for your company, or marketing, for instance. 

Secondly, outsourcing pay to a professional company will also ensure that your business meets all its obligations under the law and towards HMRC. As the company’s expertise is dedicated to this task, it will keep abreast of, and will quickly be able to adapt to, any changes to the tax regime too. 

And thirdly, handing over this task to a larger company that operates a system brings economies of scale: systems are already in place to deal with the process, thus reducing the learning curve for your own staff. Moreover, a larger, dedicated company managing your payroll is often able to offer a range of benefits and perks alongside simple payroll administration that can improve your staff’s satisfaction and retention rates of good team members.