What Is Payroll Management?
Payroll management is the process a business follows to manage its payroll — the employees, salaries, hourly wages, processed payments and taxes. And, it’s one of the most important tasks a company controls. It can affect employee morale and loyalty as well as the financial stability and reputation of a business. Payroll management is also essential to remain compliant with any governing regulations.
6 Reasons Your Organisation Needs Payroll Software
According to Construction News, the construction industry in the UK accounts for 6% of the national economy and hires as many as 2.4 million workers. However, as ranked by McKinsey, the construction industry is one of the least digitised.
When you employ the use of construction management software, you tap into the powers of technology for time-saving efficiency and improved accuracy, both of which positively affect your bottom line. We’ve discussed the many benefits of construction management software as it relates to improving communication, managing projects and overseeing cost control. But RedSky’s technology also offers payroll software that will continue to improve your company’s efficiency, and ultimately, success. Here’s why your organisation can benefit from a payroll management system:
1. Saves time
Printing out and mailing payslips P60s to your employees is not only laborious, but it’s also costly — postage, paper, envelopes and, more importantly, time. And we all know that time is money. By automating this task and emailing out payslips P60s instead, you save a significant amount of time — time that could be better spent focusing on business improvement goals.
When you use an online payroll management system, you’re able to go paperless. All of your employee payroll information is stored in a safe, secure, easy-to-access location that can’t get lost or misplaced. Document loss can occur from something like a fire, flood or a simple human error. Online payroll improves the security of your important payroll data. As a bonus, it frees up storage space. Say goodbye to unnecessary filing cabinets.
3. Optimises the process
No one wants to manually repeat payroll tasks day in and day out. Plus, it increases the chance of human error. When you use payroll software for HR functions and accounting tasks, you’re able to optimise the overall process to easily onboard employees, pay current employees, and file taxes — a bonus if you’re not a financial guru.
4. Employee retention
Your company is only as good as your employees. And happier employees are also more productive employees — as discussed in 6 Ways to Increase Productivity in Your Construction Organisation. One way you can ensure positive morale is by making them feel safe and secure knowing that their pay will be on time and accurate each pay period. According to an article by Yahoo!Finance, “A fifth of Brits have changed jobs after being paid late or inaccurately and one in five said they changed jobs after being paid late or inaccurately by their employer.” When you take advantage of a payroll management system, you can ensure your employees are paid on time and accurately.
5. Tax compliance
Let’s face it, taxes can be taxing. It can take hours to ensure that all information is correct if done manually. With payroll software, the system does the heavy lifting and reduces the burden. It also ensures accuracy. When you digitise your payroll process, tax tables are always up-to-date, keeping your business compliant.
As we’ve already mentioned, time is money. You might think that the initial investment in a payroll management system is high, but the benefits outweigh the costs. You’ll greatly improve your payroll process — efficiency, accuracy and security — saving time. Payroll software also puts the payroll process in your hands, reducing the need for outsourcing or hiring employees with dedicated payroll experience.
Key Features of Payroll Software
Payroll management software typically has a set of key features to help streamline the payroll process. These features include:
- Direct deposits
- Accounting and time management
- Reports (reconciliation and payment deduction analysis)
- Tax management
- Compliance management
- Expense management
Payroll Software for Construction Industry
The construction industry is notorious for budget overruns. As companies seek ways to improve productivity, efficiency and cost planning, payroll software is one way to better the bottom line, retain employees and even solidify financial stability and reputation.
While there are many payroll management solutions available, RedSky’s solutions are specific to the needs of the construction industry. We make it easier to manage the payroll process with software designed to handle a variety of complex payroll and human resources (HR) options.
We know that you need to focus on your business and oversee construction projects rather than spend time dealing with payroll management. Here are just a few of our features that help construction firms streamline their payroll administration, quickly and easily, letting you focus on the business:
- Automatic calculation of PAYE and NI
- Irregular and one-time payments, such as holiday credits, fares, travel, etc.,
- Automatic update of cost and nominal ledgers with detailed audit trail
- Year-end P35 and P60 forms emailed securely and electronic P35/60 via XML to HMRC
- Link to Subcontractors Ledger
- Optional overhead recovery by trade applied to contract costs
- HR processes
- Timesheet and expenses management
- Allow employees/managers to complete electronic timesheets on a mobile device