Your Payroll Systems Capabilities And Functionality
Managing the payroll for any sized company requires a good recordkeeping system and all of the proper updates containing the most current laws in place by the government. Payroll manager must make sure that their payroll systems keep a track of all tax information, insurance contributions, retirement plans, and any other deduction that will come out of an employees check. The payroll systems used by most companies have basic capabilities and functionality that is required for every type used.
It doesn’t matter when you pay your employees – be it monthly, bi-weekly, weekly, etc. – your payroll systems should be able to do the following:
• Calculate all deductions including items such as student loans, payroll advances, and donations
• Produce checks and pay slips for all employees
• Produce a comprehensive payment report so that you know exactly how much each employee should be paid
• Record all payments and deductions
• Produce reports whenever needed showing a yearly total for employees and accounting personnel if needed in addition to annual year end reports
• Calculate all necessary amounts and documentation when an employee leaves
Payroll managers will have to input employee details into their payroll systems when it is first set up, whenever an employees starts or leaves, or whenever there is a change in the employees’ salary levels and deductions. They will also be responsible for making sure their payroll systems have the correct taxing information and they will need to enter work hours and overtime.
Payroll systems must also be functional enough to be able to handle all the requirements of your company. Most account for additional deduction capability above and beyond tax and insurance such as pensions and loans, but if the payroll systems you are researching do not and you know this is something you will need, keep looking. The same goes for pay intervals. Payroll systems must be able to accommodate for more than just the standard weekly and monthly intervals.
While small businesses will only have one payroll administrator, larger companies will have an accounting staff that can handle the amount of payroll that needs to be paid. Each company should may sure that their payroll systems can accommodate multiple user operations so that the payroll can be processed faster. End of year reports are also important as companies must file tax forms and print up the appropriate documentation for their employees. Most canned payroll systems will come with the required forms, but it’s a good idea to verify that it comes with the necessary P11D form template so that they can be printed for employees to use during tax season.
Finally, your payroll systems will need to be able to calculate and track holidays, vacation time, sick time, and travel so that the employee is properly paid during these particular events. All companies will need to make sure the payroll systems they have chosen will integrate with their current accounting system so that employee information can simply be transferred from the payroll systems into the main system without the need of additional information keying and possible mistakes.
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