Payroll software is a type of software where you can run payroll for your employees. It makes paying your employees easier.
Payroll helps you ensure that your workers are paid the right amount, on time, and in compliance with rules and regulations.
What is payroll?
As an employer you have to pay your employees in accordance with their employment contract. The employees are entitled to a payslip every time they get paid, which includes details about their salary.
You also have to deduct income tax, pensions and other applicable expenses from the salary, and you most likely also have to pay some sort of national insurance contribution on behalf of your employees.
Why use software?
While it’s not mandatory to use software—you can do payroll manually—it will save you time and work, especially if you have many employees.
Software can help you
- Keep track of employee information, such as wages and tax
- Calculate wages and benefits for your employees
- Deduct income tax and other withholdings
- Generate payslips
- Keep track of holiday pay
- Analyse payroll data and generate reports so that you can keep track of wage costs.
You can also get an accountant to help you with payroll, or outsource the work to an accountant who will do the work in their own software.
Common integrations
Some payroll software software include time tracking—or can be integrated with your preferred time tracking software—for tracking employee working hours and overtime. You can also integrate with expense tracking software, so that employees can easily get refunded for the expenses they incur on behalf of your business.
You should also integrate this software with your accounting software, so that wages, taxes that you collect on behalf of your employees, pension payments, and so on are automatically recorded in your general ledger.