Selecting an ideal payroll solution is a crucial investment for any company regardless of size. A complicated and inefficient system will cost you time and money. If you are reliant on manual processes, staying compliant with HMRC can be a major challenge.

A good payroll solution will allow you to streamline processes whilst being secure and compliant, making it a significant investment for enhancing operations. With numerous options available, choosing the best payroll software for your business can be tricky. We’ve listed these eight key things to look out for when you are choosing a payroll solution.

1. Number of employees, companies, and users

Many payroll solutions will be priced according to the number of employees you have, so it is imperative to have this figure in mind when exploring prospective suppliers. You need to bear in mind that your number of employees is a crucial factor in the price you will pay. Consider how many employees are currently on your payroll, their specific payroll requirements, and the number you predict for the year ahead. The larger the number, the more robust your payroll software will need to be.

If your business is involved in payroll for several companies, how many different companies will you need to process payroll? If you are an umbrella company, you will need to process payments for several companies at once. In such cases, the software you choose must be able to handle multiple employers and agencies.

2. Integration between payroll software and other solutions

Are there any essential applications your payroll needs to integrate with, for example, ERP, HR, or CRMs? If so, check whether the solution is compatible. Do you need to import information to your payroll software from spreadsheets or other software? Do you need to integrate with a biometric system or a clock-in system?

These are all areas to be considered when selecting your payroll system. You should check with the payroll solution providers and delve into what integration, features, and functionalities are available.

Consider payroll solution vendors that have a recognised portfolio of integrations with the most popular business applications. One such solution is Dogma Group’s  SiriusPayroll365 that integrates seamlessly with Microsoft Dynamics 365 Business Central and Dynamics 365 for HR.

3. Complying with legislation

Compliance is often a big challenge in payroll processing. A decent payroll provider ought to have a tax compliance team that consists of specialists who will review your current data to check for any possible payroll tax errors. The tax compliance team must also manage tax filings and payments, update payroll tax tables annually, and assist you with year-end processing.

Opt for a solution that ensures you submit the correct data to HMRC and meets the RTI (Real Time Information) requirements. An HMRC-compliant payroll solution that connects to HMRC and retrieves tax codes automatically is worth considering!

Aside from standard payroll law, are there any other legislative requirements that the company you will be doing payroll for needs to comply?

If so, it is necessary to confirm that the payroll solution you consider will be legally compliant. One example of legislation that may need to be catered for by a payroll suite could be the Construction Workers Pension Scheme.

4. Payroll frequencies and types

How often do you need to pay employees? Is it weekly, biweekly, fortnightly, or monthly? Does everyone get paid in the same manner, or do you have a mixture of all?

You need to ensure that the software you choose is compatible with your required payment frequencies and supports your payment needs. Also, consider how employees’ holidays are calculated – do they get a fixed amount of days a year, a third of the working week, or some percentage of hours worked? If tracking holidays is currently a labour-intensive task, check which payroll package can help you manage this.

5. Types of pay slips to use

Will you be printing out pay slips for employees? If yes, what will you print them on – plain paper, standard pay slips, or customised pay slips? Find out how much will this cost you per week, month, and year. Instead, would you prefer to email pay slips to your employees? If so, will the potential payroll solutions you are considering permits you to email them securely? Make sure you verify this!

6. Do you need to be mobile?

As working from home and working remotely becomes the new norm, cloud-based payroll is useful for finance and HR departments to manage payroll remotely. If you need to process payroll from multiple locations or need access on the move from mobile devices, a cloud payroll solution could be for you.

In addition to providing data protection and regular updates, cloud solutions will likely have an option where you can pay monthly, allowing you to spread the cost of your software. Besides, you will not have to worry about replacing your system as you grow since ERP integrated solutions like SiriusPayroll365 will allow you to scale as your business grows.

7. Support & service package

Software requires ongoing support in the event of any ambiguities or technical bugs. Explore what level of support is provided by the payroll solution provider including what it covers and any associated costs. It is also worth knowing who will be available for support queries- a support team or a dedicated account manager.

When analysing the level of support offered by a payroll provider, here are some questions you can ask:

8. Can you try before you buy? Free trial or demo 

There is only so much you can ascertain from reading about a solution. If you are thinking of a variety of payroll systems, specifically those you have not used before, trying it out before you buy can allow you to gauge it against your unique business needs. This will give you confidence that the payroll system you choose will work for you.

One recommendation is to look for a solution provider that will offer a trial period allowing you to test out and use the software before the purchase.

Looking for an integrated payroll solution?

Timely pay cheques mean happy staff and a healthy organisation. SiriusPayroll365 is a fully HMRC-compliant solution that manages your organisation’s payroll effortlessly.

The latest version of HMRC-compliant payroll solution for D365 Business Central with a simplified interface and better user experience is coming in early 2021! Stay tuned as the Power Platform version will be available for public release! Sign-up here for updates

For more information on SiriusPayroll365, visit our webpage: https://siriusapp.co.uk/apps/siriuspayroll365/