National Payroll Week takes place 6 – 10 September this year. It’s a time when payroll professionals are celebrated and we talk about the importance of payroll – processing payroll, managing payroll and understanding payroll, and everything that’s involved in keeping the UK paid.
Whether you process payroll in-house or outsource to a payroll provider, there’s never a better time to do these three key things.
1. Double-check your payslips are sent securely
Around 60% of organisations now provide payslips via an online self-service facility compared to just 12% back in 2008. However you deliver payslips to your employees, it is essential to ensure they’re secure. This means, if you’re still emailing payslips to your employees, it may be a good time to look at your options.
Although according to GDPR emailing documents to employees is not banned, as an employer you do have a responsibility to minimise the opportunities for personal data to be seen by the wrong people. Email was never meant to be secure and if your company emails are subject to a data breach you will be held responsible. Similarly, if the email is intercepted you cannot guarantee confidentiality which is against GDPR guidelines. Of course, email can be encrypted, and password protected but it is worth considering how user-friendly this is, whether employees have access to their emails on personal devices when they may need their pay documents and how this fits with your image and values as a company. Read more about digital payslips on the Chartered Institute of Payroll Professionals website.
2. Encourage your employees to check their payslips
Do your employees understand their payslips and know who to contact if they have a question? In a recent survey, only 62% of people admitted to understanding everything on their payslip. It is a legal requirement to provide all employees with a payslip, and it must contain at least these five things:
- Gross pay
- Net pay
- Any variable deductions
- Any fixed deductions
- A breakdown of how wages will be paid if more than one method is used
Ask your employees to grab a coffee and check their payslip. Let them know who they can contact in payroll for a chat about their payslip and anything they don’t understand. If your payroll provider doesn’t offer this service you can use the Understanding Your Payslip resources from The Chartered institute of Payroll Professionals.
3. Do some calculations – check your contract with your current payroll provider, or the costs of processing payroll in-house
Processing payroll is a legal requirement but is also an administrative burden, which is probably why 61% of businesses in the UK choose to outsource their payroll. Outsourcing your payroll can be a sensible decision for an SME but it shouldn’t cost the earth. Use this week to take time to shop around or at least renegotiate to check you’re getting the best deal. Consider what other services you could get from your payroll provider. Imagine the benefits of paying one fee for multiple services as opposed to juggling multiple suppliers and invoices.
The responsibility associated with payroll processing makes it a sound business decision to hand it over to an expert but as a business owner you should be very careful who you hand it to. Here are 6 things to consider when researching outsourced payroll providers
Take the time during National Payroll Week to step back and look at your payroll within your organisation to make sure you’re providing the best service for your employees and getting the best deal from your payroll provider.
Payroll business solutions
Payroll compliance can be a burden when you’re trying to grow a business. By using payroll specialists to process your payroll and also take on the HMRC and Pensions Regulator compliance, you have more time to focus on business growth.