Feel at peace with your payroll system

A fresh spin on the importance of payroll

Scientifically speaking, money doesn’t actually make the world go round. You’d have to look into issues like gravitational fields, accretion discs and angular momentum to get to the bottom of that. But money does play a huge role in keeping everyone’s lives in orderly motion. It exerts a powerful force that helps countless things to happen when we want and expect them to.

Strong businesses enable their payroll teams to run operations that are as sure-fire as possible. It’s all about giving people confidence that they’ll be paid the right amount of money at the right time, or, looking at it from an internal perspective, that those setting up and running payroll systems are assured that payments to employees will happen without a hitch or repercussions.

So whether you run an established enterprise and wish to revisit your remuneration methods, or are starting out and interested in how to pay employees in a small business, our new guide to understanding payroll – including common problems and potential solutions – is the perfect reading material for you.

Payroll systems must be trustworthy, not trying

A dependable payroll function is a linchpin within any great organisation. So much so that it’s surprising how many companies let their guard down when it comes to their payroll systems’ accuracy, efficiency and cost-effectiveness.

Strong payroll systems and managed payroll services are not a ‘nice to have’ – they need to be high-quality because the financial wellbeing and engagement of staff rely on them.

One in three British companies have chosen to outsource their payroll to an external supplier and although handling the function in-house remains standard practice for many, these tend to be bigger businesses under less financial pressure and with more personnel and greater flexibility to draw on.

With human error, increasing overheads and the damage and uncertainty caused by Covid-19 added to the mix, getting payments to people on time, securely and by the book has become even more of a challenge. Now is therefore an opportune moment to reappraise the suitability of an existing payroll system – and discover our dynamic solution.

Payroll should be a primary concern, not a secondary function

Taken from a recent research study we undertook, here’s an interesting breakdown of where businesses place responsibility for payroll if they handle it internally:

• for 45%, it rests with their finance teams
• 33% make it a duty of their HR departments
• while 22% run it as a standalone function

The suggestion seems to be that there’s no definite optimal position for payroll to sit inside a company and as a result the payroll peg is often pushed into finance spaces or HR-shaped holes. Of course, it might squeeze in there okay, but is it really the best place for it and what damage might this role dilution entail?

The reality is that while many HR and finance departments can take care of processing payroll without much trouble, lots of them are bogged down by the amount of preparation that’s required.

Running all the numbers needed is time-consuming enough before you encounter additional factors such as combinations of salaried and hourly-paid staff, late submissions, data input errors, plus queries from managers, employees and external authorities.

Roll out a payroll system that’s right on the money

Any business that aspires to be successful wants their payroll to be managed thoroughly and professionally, but it can be difficult when the intricacies of Pay As You Earn (PAYE) and Real Time Information reporting (RTI) are in play.

Limited experience, a little carelessness or a lot of time pressure can mean costly mistakes are made, with many an HR department or finance team working incredibly hard, but handling too many tasks to dedicate sufficient attention to each one.

That’s where the outsourcing of payroll becomes a truly liberating option. An experienced payroll provider with the right skills and future-proof solution can free up internal teams to focus on core tasks, but they can actually deliver a whole range of business benefits, including:

• sizeable cost savings
• greater staff satisfaction
• increased regulatory awareness
• stronger compliance structures
• decreased penalty risks

Access Payroll Services is our market-leading solution that can turn any payroll situation round, in style. To find out more, simply download our new guide: Payroll Peace of Mind.

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