Payroll Software

1. Is It for You?

Payroll software is not suitable for everybody.

1.1 You are most likely to benefit if you have already computerised your accounts.

• Most accounting packages provide a payroll module.
• Specialist payroll software can often link to different accounting packages.

1.2 If your payroll changes frequently, payroll software will be particularly helpful. This might be the case if:

• You often hire employees on short-term contracts.
• Employee pay is made up of several elements, such as basic pay, commission and bonuses.
• You make deductions, such as pension contributions.

1.3 You may need to analyse your employment costs.

• Some bespoke software may make it easier to allocate employment costs to cost centres.

1.4 To get the best out of the software, you will need to keep up to date with PAYE and National Insurance legislation.

• The software ensures that you use all the right tables and that all the forms are filled out in the approved manner. But it cannot advise you on the best course of action.