There are many advantages in using payroll software. This is because it gives you greater control over your data. Let's look through them and find pout why it is important to use it.
Reducing the amount of time
However, by automating repetitive and sometimes difficult tasks, the software reduces the amount of time spent.
It is easy to pay people weekly as to pay them monthly. That's why, most packages offer you the alternative of paying employees every week, every fortnight or every month.
1. Pay slips are produced automatically. And some software packages have an elective module. With this you can make direct credit payments through BACS.
2. With this you don't have to fulfill complex calculations involving different tax and National Insurance tables. Tax codes and National Insurance letters will be interpreted with the software. It will do the calculations for you.
3. It allows you to make easily extra deductions from each employee's wage packet. Allowable deductions include pension contributions, union dues, employee savings, student loan repayments and voluntary charitable donations.
4. A range of extra payments should be automatically calculated with the software. These include statutory sick pay, statutory maternity pay, statutory paternity pay, holiday pay, back pay and tax credits.
5. This will automatically give you information for your end-of-year returns.
Nevertheless, the software assures compliance with statutory rules and procedures.
The software gives you an opportunity to share data between different software applications.
1. You are allowed to minimize the number of times you have to enter the data.
2. You can automatically update ledgers.
3. It allows you to integrate data generated by different parts of your business. It means that you may be able to use your payroll information to address letters and circulars automatically.
Providing with detailed management information
With more sophisticated software you can be provided with detailed management information.
Most payroll software enables you to run queries and generate reports.
1. A suite of standard reports is what the software should also include. For example, a report to show National Insurance contributions.
2. Moreover, the reports should allow you to see how each figure was calculated by 'drilling down' to detailed explanations. And you should be able to look at the report at different levels, such as the level of the company, the cost centre or the employee.