Traditional payroll processing is a fundamentally repetitive function — one that involves substantial time and effort, as well as complicated data handling, calculations and record-keeping.
Each month, spreadsheets must be updated. Time and attendance data must be entered. Then comes the actual processing bit: gross and net salaries must be calculated after taxes like National Insurance contributions (NICs) and workplace pensions have been deducted. Bonuses, benefits, expenses, holiday pay, sick pay and many other behind-the-scenes costs also need to be taken into account. To calculate the pay and other benefits, the data must be manually copied, imported or exported, and sent to relevant managers before being authorised.
As with any repetitive manual task, mistakes are bound to happen. And given the volume of paperwork involved in payroll, errors and miscommunications are common.
Plus, with so many employees now working remotely, traditional UK payroll administration is proving increasingly more challenging. Card readers and sign-in forms are ineffective for managing attendance, and hard copy management of leave and claims is no longer possible. Email processing can be chaotic due to the numerous submissions, manager approvals, verifications and coordination required — not to mention insecure.
But non-compliance isn’t an option. Failures in the payroll department can quickly erode employee trust, damage your company reputation and lead to hefty fines. So, it’s essential that payroll tasks are always processed promptly, correctly and compliantly.
Fortunately, technology is starting to break down those old, crumbling payroll walls, helping companies automate and streamline their processes to eliminate errors and mundane, repetitive tasks…