Payroll Software

5. Testing a System

The cost of implementing a system is related to how easy it is to use. Ask for a demonstration.

5.1 How easy is it to input joiners and leavers?

• Does the program prompt you for all relevant tax and National Insurance information and check the format?
• Does the program automatically determine how much holiday pay or back pay the employee is entitled to?
• How easy is it to input details of additional deductions, such as pension contributions?
• Can you set up templates? For example, a template for temporary employees.

5.2 Can the program handle end-of-year reports?

• Does the program allow you to keep track of any taxable benefits and expenses paid to employees during the year?

5.3 How does the program calculate net pay?

• Can you input different rates of pay per employee?
• Can you calculate bonuses and commissions automatically using information stored elsewhere?

5.4 How easy is it to change an employee's pay details?

• Can you make global changes that will affect every employee?
• Can you correct an error for one employee without affecting others?
• Does it matter in what order you input any changes?

5.5 How easy is it to make one-off payments or changes?

• Can you tell the software when to apply particular rates of pay? For example, periodic payments, such as year-end bonuses.

5.6 How easy is it to run reports and queries?

• Will you be able to do this yourself, or will you need additional support?

5.7 How flexible is the system?

• Are there any limits on the number of deductions or employees that the system can handle?
• Can the software handle different hourly rates for the same employee?
• Can the software handle foreign currencies and different tax systems?
• Can you customise the way the program looks and operates?
• Is there a browser version of the software? This allows employees - or line-managers - to access their pay details and print pay slips via a company intranet.

5.8 How will the system handle new legislative requirements?

• Can it process working tax credit, repayment of student loans and statutory maternity, paternity and adoption pay?
• Does the system allow you to file PAYE returns electronically? This is now compulsory for most businesses.