Automated payroll software can come in many different forms: there
are stand-alone packages that only deal with processing your payroll; or it can
be part of a bigger office/business management package. Some packages come as
software addition/updates that 'bolt on' to your existing package to give you
extra features.
Purchasing software
The majority of these
software packages can be purchased 'off the shelf' or via the internet; some
vendors can develop software specific to the size and needs of your company.
Alternatively, your payroll can be contracted to a bureau that will process it
for you (this often becomes a viable option when your business has reached a
certain size - perhaps 25-plus employees - or if your threshold for business
administration is very low).
Depending on the size of your business, an automated payroll has
several advantages:
Existing payroll administration can be greatly reduced in terms
of time and money
Tax deductions, National Insurance contributions, sick pay,
maternity leave, travel expenses and holiday entitlements etc. can be
calculated quickly and effortlessly
Employee cost figures allow you to compare cost with the amount
of revenue generated
Year-end procedures, such as producing P11, P14 and P60 forms
in the UK, are fully automated
As well as documenting all your payroll transactions, packages
should print your staff pay slips
For most businesses, the cost of staff is its greatest expense, and
calculating the weekly or monthly payroll can be one of the most time consuming
aspects of administration. It therefore makes sense to streamline this aspect
of your business; this is particularly true if your business is expanding and
taking on new members of staff.
