This kind of system allows all employers to process their payroll with the use of a computerised system. On the other hand, if you are still a company that does it manually, then the procedure is going to be a lot slower and mistakes will probably be made. An automated system doesn’t have such issues and it makes the process so much simpler, almost cancels out any errors and employees are happier.
Most workers are paid hourly and according to the amount of hours that they work. The employer therefore needs a system that can track these hours and match the appropriate salary to them. Most employers use a time clock to clock in and out of work. This can come in the form of the older punching in system, or the now scanning of the employees thumb print. The automated timekeeping system allows the time clock information to be imported into the payroll software and once these entries are transported across into the payroll system, then salaries can be calculated. The only thing that the payroll worker has to do is to check that all the information has been transported across and if necessary, make any adjustments.
Keeping Of Records
In the UK, the government and the relevant agencies require that records of employment and tax records are kept for a minimum stipulated time. A payroll system insures that all the necessary information is kept which includes employment tax information. For the accountants out there in the UK, you can also avail yourself of payroll processing for accountants from Primo Payroll, which takes away all the manual work that existed before. There is no more writing down the records into ledgers and processing and adding all the information yourself. There is now a system in place to assist you with all of this. It definitely makes the life of an accountant much easier.
Deductions must come out of everyone’s salary in the UK. We have a national insurance deduction, tax deductions and in some cases, a court mandated deduction from the salaries of fathers to support their children. It is mandatory for the UK employer to make the necessary deductions and trying to do all this manually, is a nightmare scenario. When you use an automated payroll system, then the various rates can be hard-coded into the system and so the system calculates the exact money to be deducted to the penny. This system vastly reduces the chances of payroll tax and contribution errors which might result in fines to the company or unnecessary government audits.
Convenient And Functional
This system allows everything to be processed much more smoothly and cuts out the need for unnecessary paper trails and time consuming manual checking. All employee payroll issues can be addressed in one place and management reports, tax obligations and national insurance obligations can be calculated and submitted to the relevant UK government department. It allows for proper compliance and completes all the complicated issues that are associated with payroll.