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?
• 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 different kinds of 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 buy an addition to the package that will let you calculate any set 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 roll back to a specific pay period to correct an error and reprocess for one employee without affecting the 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 the software keep track of other relevant information?
• 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 off pay slips via a company intranet.

5.8 How will the system handle new legislative requirements?

• For example, the working tax credit, repayment of student loans and statutory maternity, paternity and adoption pay.
• Will the system allow you to file PAYE returns electronically? This is compulsory for businesses with between 50 and 249 employees, and for all businesses from 2010.