Payroll Software Strengths
An essential feature of the payroll solution is the
inclusion of an employee details worksheet in which simple
details are entered for each employee such as name and
address, income tax code, national insurance number and
relevant dates which satisfies the requirements of small
businesses operating a paye scheme. The payroll software
then uses these details particularly of income tax code and
national insurance dates to calculate the income tax and
national insurance deductions. Once the employee details
have been entered running a paye system couldn’t be
easier.
The payroll software pre-enters each employee’s name
on the payroll each week or month and simply entering the
employee gross pay triggers the payroll to automatically
calculate income tax and national insurance contributions
including the employers’ national insurance
contribution using the standard income tax and national
insurance tables which are embedded within the files
supplied with the payroll software system.
Having calculated the net pay the payroll software then
goes that extra step and automatically completes the time
consuming paye deduction sheets, all arranged in the same
appearance as the official inland revenue deductions sheet
for recording income tax and national insurance deductions.
In addition also included in the employee paye section are
copies of the employee P60 certificate, P45 if required and
the P14 which is a summary of the pay, income tax and
national insurance contributions made by each employee.
This feature of the payroll software is extremely valuable
in saving employers using the small business payroll
solution a great deal of time in paye administration.
Many payroll software systems require the purchase of
payslip stationery. The DIY Accounting payroll software is
different in this respect. First of all the payslips are
all generated automatically from the information in the
payroll file which shows the weekly or monthly gross and
net pay, income tax and national insurance and the gross
numbers to date. The Payslips all preset on payslip
templates can be printed at any time on normal A4 copy
paper being another money saving feature of the paye
solution.
Finally having calculated the income tax and national
insurance contributions throughout the year the payroll
software also produces the Annual Paye Employers return,
the P35. An excel copy in the same format as the inland
revenue form which can be simply printed out enabling the
payroll figures to then be entered and filed online for
employers to both avoid late penalties and receive the
online tax free bonus available.
It is also worth noting that the payroll software is very
easily integrated into the DIY Accounting software simply
by saving the payroll files in the same folder as the
accounting files providing a complete accounting and
payroll solution for users.
Payroll Software Weaknesses
The DIY Accounting payroll system does not deal with income
tax K codes. K codes are income tax codes that are
allocated to employees by the inland revenue in cases where
taxable expenses will exceed the annual income tax
allowance and is then not applicable to the vast majority
of employers.
The calculation of statutory payments such as statutory
sick pay and maternity leave are inserted manually by
employers. Considered to be a minor weakness since these
figures when applicable can be easily looked up on the
employers CD-Rom as required.
The quoted package sizes of 5 employees, 10 employees and
20 employees include all employees during the year
including new starters and leavers and it is important then
to obtain a package likely to be in excess of the total
number of expected employees to avoid changing the payroll
solution during the financial year.
Pricing
At £14.99 the small business payroll software for up
to 5 employees including starters and leavers is almost a
giveaway price with many competitive products priced much
higher. The 10 employee payroll version is £19.99 and
the 20 employee payroll version just £24.99.
Considering the considerable paye administrative work these
products save. The packages are not upgraded each year with
employers purchasing the new package each financial year.
Conclusion
Exceptionally good value, the payroll system is very quick
and easy to use and produces exactly what every employer
requires from a small business payroll solution. Accurate
income tax and national insurance contribution
calculations, significant reduction in paye administration
time, regular payslips for each employee, compliance with
paye administrative requirements and the satisfaction and
valuable tax free bonus prize of producing the payroll on
time.
----------------------------------------------------
Terry Cartwright is a qualified accountant in the UK
designs Accounting Software at
http://www.diyaccounting.co.uk/index.htm
providing complete accounting solutions for small to medium
sized business with Payroll Software at
http://www.diyaccounting.co.uk/payroll.htm
for 1 to 20 employees that automates the revenue payroll
tax returns.
No comments:
Post a Comment