Choosing payroll software and services 2014

Choosing payroll software
and services 2014
Chartech Software Product Guide
Lesley Meall
BUSINESS WITH CONFIDENCE
icaew.com/itfac
Exclusive FREE Payroll,
now available as standard.
QuickBooks Online now includes
FREE Payroll for up to 5 employees.
Powered by PaySuite, free payroll is now seamlessly integrated with
QuickBooks Online. Enabling your clients to pay their staff, improve
payroll flow and track their accounts in one place. Fully compliant and
with experts always on hand to provide support – your clients have
peace of mind at every stage of the payroll process.
intuit.co.uk/onlineaccountant
Contents
1Introduction
02
2 Understanding your requirements
03
2.1 SECTOR SPECIFICS
04
2.2 STRUCTURE AND OPERATIONS
04
2.3 STATUTORY REPORTING
04
2.4 FULLY FUNCTIONAL?
04
3 Spoilt for choice
07
3.1 PAYROLL SOFTWARE
07
3.2 BUREAUX, MANAGED SERVICES AND OUTSOURCING
08
3.3 CONTRACT CONSIDERATIONS
09
4 Compare and contrast
11
4.1 IN-HOUSE OR IN THE CLOUD?
12
4.2 MANAGED SERVICE?
12
5 Being a bureau
14
14
5.1 IMPLICATIONS OF OPERATING A PAYROLL BUREAU
6 Reviews of payroll solutions
16
6.1ACCESS
16
6.2CERIDIAN
18
6.3 EMPLOYER SERVICES LIMITED (esl)
20
6.4INTUIT
22
6.5STAR
24
7 Supplier directory
26
8 Useful websites
28
About the author
Lesley Meall is a freelance writer and editor specialising in business and technology.
Copyright © ICAEW 2014
All rights reserved. If you want to reproduce or redistribute any of the material in this publication, you should
first get ICAEW’s permission in writing. ICAEW will not be liable for any reliance you place on the information
in this publication. You should seek independent advice.
All publications in the Software Product Guide series, including the product reviews they incorporate, are
commissioned by the IT Faculty from independent authors. The overriding principle in selecting the products
to be reviewed in each Guide is that the Guide must achieve broad and balanced coverage of the field.
Subject to that overriding principle ICAEW may offer software houses the opportunity to pay for reviews of
their products to appear in these publications. Drafts of the reviews are sent to the respective software houses
for the sole purpose of checking factual accuracy, and this process is identical for all reviews, regardless of
whether or not they have been paid for.
ISBN 978-1-78363-151-3
1
Introduction
As many payroll processing needs are determined by
statute, you can reasonably expect all payroll software
and systems to reflect the latest regulatory changes
and help you to comply with the payment and
reporting needs of HM Revenue and Customs (HMRC)
– and generally they will. But they will not all do so as
economically, efficiently or as easily as each other, any
more than they will all be equally capable of meeting
your particular requirements in areas such as pensions
auto-enrolment. So in 3 Spoilt for choice, you can
learn more about the various available options.
When it comes to automating payroll processes the
possibilities include tools from HMRC, spreadsheets,
standalone payroll packages, accounting and business
systems with payroll functionality, plus cloud-based
software and various types and levels of managed
services and outsourcing. So this guide also considers
their advantages and disadvantages, and draws your
attention to thorny issues ranging from set-up and
support, to security and service level agreements.
There was a time in the dim and distant past when
all payroll processes were handled manually, but this
was one of the first areas of business to become a
focus for software and systems – and it’s not hard to
understand why.
6 Reviews of payroll solutions, also looks more
closely at a number of specific offerings from Access,
Ceridian, Employer Services Limited (esl), Intuit and
Star. In addition, there is a directory of suppliers,
products and services contained in section 7.
Payroll processing requires a lot of calculations and a
high degree of accuracy, and ensuring that the right
amounts are paid and deducted at the right time can
be as tedious and time-consuming as it is complex and
costly. However, it is absolutely vital for all employers,
hence the wide range of payroll systems and services
now available. Unfortunately, you can have too much
of a good thing, and when it comes to making a
choice, it can be hard to know where to begin.
Accountants who provide payroll services to clients
have many of the same basic requirements as other
users of payroll software and services. However, they
also have some unique needs, and when it comes to
features, there are areas where they have very different
priorities from the average payroll user. These are the
focus in 5 Being a bureau, which looks at the benefits
of selecting payroll applications and services that have
been designed specifically for those running bureau
operations.
Payroll software and services can do a lot more than
calculate wages and print payslips, so it is important
to start out by carefully defining and prioritising your
particular requirements. These range from internal
needs, such as the required payment intervals and
integration with other business systems, to external
drivers, such as the need to report Pay As You Earn
(PAYE) information in real time. You can read more
about how to assess and evaluate your options in
2 Understanding your requirements.
Choosing payroll software and services can be
as complex as payroll itself. However, with the
support of this guide, you should be able to make
an informed choice, whether you are in business or
practice, looking for a solution you can use in-house,
considering a bureau service, or seeking a solution you
can use to provide bureau services. Although payroll
looks likely to remain one of the most challenging
areas of business administration, finding the best
system to handle it does not have to be.
2
Choosing payroll software and services 2014
2
Understanding
your requirments
Preparation is the key to many endeavours and
the selection of payroll software and services is no
exception; before you think about talking to suppliers,
or evaluating products, it is essential to define and
prioritise your requirements. A small business with
less than 10 employees will have very different
requirements to a medium-sized enterprise with
hundreds, or a multinational with thousands, and even
organisations of similar sizes, operating in the same
sector, can find that they have quite different needs.
Therefore, for most organisations, the first part of
the preparation process involves looking inwards not
outwards. Arming yourself with basic information
about the organisation that is going to use the payroll
system or service is vital, because this will influence all
aspects of the decision-making process. Payroll is yet
one more area where the size of the company and the
number of employees are crucial factors, but this is just
the tip of the iceberg. You will also need information
relating to how the organisation is structured, an
understanding of the way it operates, and some
knowledge of the skills of its employees, and, in the
case of owner-managed businesses, its director(s).
How much business analysis this process involves
depends on the size and type of organisation, and the
brief given to (or the inclinations of) the person or
people involved. Although it is possible to draw up a
relatively simple list looking at business size, business
sector, structure, location(s), number of system users,
and the business systems already in place, and then
use this to inform the features specification process,
these areas can be broken down further, and could
result in a list with many dozens of criteria. Thus, the
process could take a few minutes or a few hours; for
a large and complex organisation it could take a few
days.
At the risk of stating the obvious: the effort should be
proportionate. The smaller the organisation, the less
likely it is to have the resources to put a lot of time and
effort into the process – even if it wants to. But when
this is the case, it is important to be aware that payroll
is an area where there is no direct correlation between
the size of the business and the complexity of its
needs. Even a very small organisation may have special
Choosing payroll software and services 2014
3
requirements that are sector-specific, a reflection of
its organisational structure or operational needs, and
there may well be an overlap between these and the
associated statutory reporting needs.
No matter where on the scale between non-existent
and well-resourced the payroll admin function is in
an organisation, it is important to collect together
as much as possible of the necessary background
information, before moving on to speak to specialists
or look at systems and services. It will inform all of the
subsequent discussions and choices, have an impact
on the direct and indirect costs associated with the
decision-making process, and influence your chances
of successfully finding the payroll solution that best
meets your needs.
2.1 SECTOR SPECIFICS
Many organisations operate in sectors that demand
something ‘special’ from their payroll software or
services. Being a recruitment agency, providing
financial services, operating in construction, the public
sector, plus the not-for-profit and charity sectors can all
create requirements that will not be met by every single
payroll system or service out there. Although there are
plenty of ‘general’ payroll solutions capable of meeting
the requirements of a wide range of organisations,
including some of those listed above, opting for specialist
software, or outsourcing the job to an external service
provider with specialist expertise, could make life
easier.
2.3 STATUTORY REPORTING
Not all payroll systems will support all of the payrelated statutory reporting requirements you could
potentially need to comply with. Functions such as
National Insurance, statutory sick pay and maternity
pay may be universally available in payroll software
and services, but not all systems offer all real-time
PAYE submission types. Many systems do not provide
Construction Industry Scheme functionality, very few
offer built-in facilities for P9D/P11D compliance, and
the support available for pensions auto-enrolment
varies widely.
While some software developers have built tools into
their basic payroll products (for example, to help
with employee assessments and calculations for autoenrolment and to provide reports), others have put
their auto-enrolment functionality into an add-on
module. Both functionality and how much of this is
automated vary widely too, as does the availability
of additional tools to help with administration.
Procedures and information requirements vary across
different workplace pension providers, so their needs
must be factored into the selection process for payroll
software and services.
2.4 FULLY FUNCTIONAL?
It is important to identify the functionality you require.
The following list provides some guidance, though it
will need modifying to match the particular needs of
the organisation, or that of your clients:
2.2 STRUCTURE AND OPERATIONS
• audit trail and security;
The structure of an organisation and the operational
tasks and activities it undertakes can create ‘special’
needs when it comes to payroll software and services.
Not all systems can support multiple departments,
locations, divisions, pay groups, payment frequencies
(such as two-weekly), multi-component pay (such as
bonuses and commissions), more than one currency,
or meet the statutory reporting requirements of
multiple countries. Some of the features you require
(such as job costing) may be included only in certain
versions of a system, available as add-ons, or via links
with specialist systems and/or service providers.
• ad hoc deductions – such as loans and charitable
donations;
• ad hoc payments to employees and HMRC;
• ad hoc reporting;
• Attachment of Earnings Order support;
• auto-enrolment functionality for workplace
pensions;
• automatic overtime calculation;
• automatic data transfer/integration/interface with
other systems (see 4 Compare and contrast);
• backup and restore support for data – online and/or
on-premise;
4
Choosing payroll software and services 2014
• bureau facilities;
• password protection of emailed payslips/P60 forms;
• child support payments;
• pay intervals: weekly, two weekly, monthly;
• commissions and bonuses;
• pension and contributions calculation;
• company car benefit calculation;
• retrospective payments;
• composite year-end routines for multiple
companies;
• self-service capabilities (accessed via intranet or
internet);
• Construction Industry Scheme compliance;
• statutory payments (such as adoption pay,
maternity pay and sick pay);
• cost centre support;
• court order support;
• data import and bulk data import;
• directors’ National Insurance;
• earning and deduction codes;
• storing personnel records;
• student loans management;
• task reminders;
• tax compliance (national and/or international).
• electronic banking;
• electronic filing of PAYE information to HMRC;
• employee attendance recording;
• employee compensation levels;
• employee mailing lists;
• expatriate payroll;
• export data to pension provider or a third party;
• export/import data and reports to other
applications;
• generate forms such as P35, P45 and P60;
• HMRC payroll standard compliance;
• HMRC recognised PAYE software;
• HMRC reporting and data retention compliance;
• holiday pay monitoring;
• IR35;
• labour and job costing;
• multi-currency support;
• multiple bank accounts;
• multiple payrolls;
• multi-user;
• National Insurance Contributions;
• P9D and P11D compliance and reporting;
Choosing payroll software and services 2014
5
Transformative
Trusted
CLOUD TECHNOLOGY
FOR HR & PAYROLL
Trusted Results. Transformative Technology.
TO USE
ANALYTICS & REPORTING
TO DO BUSINESS WITH
Instant payroll results
No more manual reports
Switch on. Set up. Go
It’s mobile just like you
IT geeks need not apply
You grow. We grow
No training required
Click of a button report packs
Upgrades are easy
It’s mobile. On any device.
At any time. Everything you
need is in one place.
Answer the questions you’ve never
been able to get to. No IT or
specialist knowledge required.
Quick to set up.
Future proof.
Easy to buy.
HR
Payroll
Pensions
#technologytransforms
@Ceridian_uk
06
Workforce
Management
Employee
Assistance
Programme
Analytics
Mobile
0800 048 2731
www.ceridian.co.uk
Choosing payroll software and services 2014
3
Spoilt for choice
Approaches to payroll range from the totally
manual (which is increasingly impractical) to totally
automated (which is increasingly accessible), but
most organisations settle on an approach that
falls somewhere between these two extremes.
Consequently, organisations that want to simplify and/
or streamline their payroll with the help of software
and services can choose from a vast array of possible
solutions.
Statutory submissions of payroll information have
gradually migrated from manual to electronic, and
the use of some sort of software and the electronic
filing of some types of payroll information are now
unavoidable for even the smallest organisation.
HMRC provides tools aimed at small employers who
may not have access to commercial software or
services with the required functionality. These include
PAYE Online (which can be used for tasks such as
submitting forms P46, P9D and P11D) and HMRC’s
Basic PAYE Tools which can be downloaded onto a
computer and used alone or alongside commercial
payroll software that does not support certain types
of RTI submission, such as the Employment Payment
Summary (EPS) or National Insurance Number
Verification Requests (NVR).
The commercial options range from traditional onpremise packages to the myriad incarnations of payroll
software and service now available over the internet
– and variously described as being cloud, on-demand,
Software as a Service (SaaS), managed service and
outsourced. Most organisations end up doing some of
the work inside the company and getting some of it
done outside, depending on how little, or how much,
they want to be involved in the payroll administration
process.
3.1 PAYROLL SOFTWARE
Payroll software comes in a number of guises: as an addon application or module that will interface or integrate
with other applications (such as small business
accounting and business systems or Enterprise Resource
Planning systems), as part of an integrated payroll/
human resources/human capital management system, or
as a dedicated stand-alone system (that can potentially
be linked to, or integrated with, other systems).
Choosing payroll software and services 2014
7
You can find information on a range of developers in
7 Supplier directory. Ideally, any system you select
should simplify the payroll process, save time (and
money, potentially), minimise errors, and reduce the
need to grapple with complicated tax tables. So you
can reasonably expect it to:
• provide the tools to accurately and quickly calculate
all of the figures for pay and deductions;
• keep comprehensive employee records and a full
payroll history;
• provide (various levels of) analysis and reporting
facilities for management;
• produce any statutory reports required; and
• submit these statutory reports electronically,
where necessary.
Payroll software can also do a great deal more, and the
details will vary from system to system – though the
number of available features and the level of expertise
needed to exploit them tends to relate to the size of
the organisation it has been created for. So a payroll
system designed for a business with 10 employees
could be very different to a system designed for
dozens, hundreds or thousands of employees.
Systems aimed at a small business hide the
complexities of payroll behind a simple user interface,
and where they provide built-in help (as many do)
this is aimed at people with no payroll experience or
expertise (or very little), and the sorts of interfaces/
integration offered are limited to other small
business systems (such as accounting and P11D).
Reassuringly, for those with minimal payroll expertise,
many software providers now offer lots of self-help
tools online, such as videos to demonstrate specific
processes and answers to frequently asked questions.
You will also find discussion groups on their websites
and LinkedIn.
At the other end of the scale, you will find products
aimed at much larger (and often global) enterprises.
These go way beyond the basic payroll needs of any
organisation and are often part of product suites that
provide extensive human resources management
functionality (ranging from talent management to
workforce analytics). Although they also conceal a lot
of the complexity of payroll from the user, the much
broader feature ranges they offer do make them
inherently more complex. Users are generally expected
8
to have some knowledge not only of payroll, but also
of the system itself.
Most payroll systems sit somewhere between
these two extremes. You can expect them all to be
kept up to date with the latest UK tax rules, rates
and limits and provide the ‘core’ functions any
organisation needs from its payroll system. However,
there is plenty of variation in terms of basic product
functionality, additional functionality, ease of use,
flexibility, reliability, integration with other specialist
systems (such accounting, tax, practice management,
timesheet systems), support, cost, scalability, built
in intelligence, and the levels of experience and/or
training required to use them.
3.2 BUREAUX, MANAGED SERVICES
AND OUTSOURCING
Numerous providers offer payroll as some form of
bureau service, managed service or outsourced payroll
service (see 7 Supplier directory). These range from
payroll specialists such as Midland HR, Moorepay and
many smaller organisations, to high street banks, such
as Barclays and RBS, while most firms of accountants
and bookkeepers also offer various types of payroll
service. The extent of the services offered can vary
widely, depending on how involved the client wants
to be and how much involvement the service provider
offers.
An externally provided payroll service could be as
limited as providing payslips (as hard copies or making
them accessible online); it could check the payroll data
and run the calculations; or it could provide a totally
outsourced service that can take over the entire payroll
process, from start to finish, effectively becoming the
payroll department for each of its clients.
Unless the latter option is the case, most scenarios will
still require the business to collect and collate some (or
all) of the employee data necessary to run the payroll.
This could mean calculating overtime, working out
National Insurance contributions (NIC) and
undertaking the various other payroll-related tasks that
are necessary, before this data can be sent using
various formats and methods (as a spreadsheet or text
file, or input into a specially designed web form, for
example) to the service provider, who will then run the
payroll and provide various associated services.
Choosing payroll software and services 2014
It is worth noting that all of the information required
by the service provider will need to be delivered well
in advance of the date on which the payroll is due to
be run or the statutory filing needs to take place – and
the gap will vary between different service providers
and levels of service. For example, the same service
provider may request the information it requires to
process a payroll three days in advance for some of its
bureau services and five days in advance for others.
The near-ubiquity of internet access and the growing
popularity of cloud-based services mean that most
bureau and managed payroll services now feature
some type of internet access or delivery component.
This is making it increasingly difficult to categorise
offerings let alone draw a bright line between them.
Many specialist providers now offer a range of payroll
solutions, including cloud-based software plus various
types of managed/outsourced payroll, with multiple
levels of service, designed to meet the needs of
clients of different types and sizes. Some offer more
flexibility than others, which tends to be reflected in
prices. Purpose-built ‘service packages’ aimed at small
organisations with few employees and/or relatively
uncomplicated requirements, generally cost less than
more flexible tailor-made offerings.
As technology is changing fast, so are the terms
of reference used to describe it and the services it
underpins. So, while some providers still market their
services using well-established terms of reference
such as ‘payroll bureau’ and ‘fully managed service’,
others are actively trying to avoid such distinctions.
This makes payroll an area where terms of reference
for services (and the associated technology) can be
confusing and unhelpful. There is no point in getting
too hung up on the semantics, since the actual service
details are much more important when you are
considering a number of offerings.
3.3 CONTRACT CONSIDERATIONS
Before putting any payroll processing in the hands
of an external supplier, a contract and service level
agreement must be in place. They will define the
level of service that can be expected (ranging from
support to processing timescales), the consequences
of not meeting these standards, and exactly how the
relationship between the service provider, the client
and its employees is going to work.
These can be complex and detailed documents both
technically and legally, so you must seek specialist help
and advice. Be sure that you understand the content
and implications of the details in the contract and
service level agreement, which should, as a minimum,
specify:
• exactly what is covered by the charges;
• any potential additional charges;
• that the service provider will meet mandatory
requirements within the required regulatory
timescales;
• that the service provider will calculate tax and
deductions accurately;
• the timescales for making these deductions and
other financial transactions;
• the provisions and timescales associated with
penalties for not meeting the agreed standards and
timescales; and
• the provisions (if any) for any future contraction or
expansion of the client’s business.
But before you sign on the dotted line, and hand
over all (or even some) of your payroll processing,
it is important to check on a number of things (see
box on the following page). Also, pay attention to
the fine print, particularly where cost and service
level guarantees are concerned or the solution that
is supposed to simplify your payroll processes and/
or reduce the associated costs, could end up doing
exactly the opposite.
Choosing payroll software and services 2014
9
THINK BEFORE YOU INK
Before putting any payroll operations in the hands of an external service provider there are
a number of points to check and questions to ask. These include (but are not limited to) the
following.
• Can its services meet your business needs? For example, how much auto-enrolment
functionality is provided? How much of this is automated? Will this enable you to meet
the needs of your pension provider and comply with the requirements of The Pensions
Regulator?
• Will the service meet your statutory reporting requirements?
• Is it recognised by the HMRC PAYE Recognition Scheme? (see 8 Useful websites)
• Does it have experience of your size and type of organisation (and if so, how many years)?
• Does it offer a flexible range of payroll solutions?
• What are the charges for system set-up, administration and support?
• Are you paying only for what you use?
• What level of service is guaranteed?
• Do the fees include all types of deduction?
• What are additional fees charged for?
• What happens if a filing error is made?
• How quickly, easily and cost-effectively can the service be scaled up or down to meet your
changing needs?
• How and when are the funds for net pay and taxes transferred from the employer to the
service provider and/or HMRC and employees?
• During what hours is helpdesk support available and how is this provided?
• Will support and queries be dealt with by ‘smart software’ or people? Is there a unique
point of contact and will this always be the same person?
• Are staff fully qualified through an organisation such as the Institute of Payroll and Pensions
Management?
• What software is used to provide the payroll service?
• Is it compatible with your existing systems?
• Is it HMRC accredited?
• Is the service provider an established organisation with a good reputation?
• Have recognised frameworks such as the ISO 9000 family, ISAE 3402 or ICAEW’s AAF 01/06
been used to demonstrate good internal quality management?
• Does it have ISO 27001 to demonstrate good information security?
• Is it compliant with the Data Protection Act?
• What are its disaster recovery plans?
10
Choosing payroll software and services 2014
4
Compare and
contrast
Choosing from the immense range of options for
payroll software and services requires the consideration
of a number of factors, just how many will be
determined by what your organisation is hoping to
achieve. So it is important to be clear about your aims
and priorities.
Some choices preclude others. If you need a payroll
software application or service that can meet the
auto-enrolment information requirements of a
particular pension provider, or want a service that
can automate specific processes associated with your
responsibilities as an employer, some offerings will not
make the grade. If an employer wants to minimise
their involvement with payroll processing, then a
system that simply produces payslips probably isn’t
an option; instead, they will need to choose from the
various outsourced and managed services available, or
use a payroll system (with external support) and then
pay a bookkeeper (or another qualified individual) to
handle all of the associated processes. Because the
software used to do this can be either on-premise or
cloud based, a choice may need to be made between
the two (see following page), or the approach may be
dictated by the external adviser chosen.
Different choices will have varying implications. For
example, whether an organisation is using a payroll
system to handle its own payroll in-house, or paying
a specialist to do this, somebody will need to take
responsibility for the installation, maintenance and
upgrade of the system (although these requirements
can be virtually eliminated with a cloud-based solution).
All of this must be factored into the decision-making
process, along with the associated demands in terms
of time, cost and expertise – both inside and outside
the organisation – that will be using the software.
In many scenarios, the considerations will be
common to any decision-making exercise where
the effectiveness of a business critical process
(or processes) is going to be determined by the
performance of an externally-provided product or
service.
For example, it may be necessary to consider the
implications of opting for a highly specialised supplier
or one with a range of software and services on
offer, and to review the capacity of the system or
service to integrate or interface effectively with other
Choosing payroll software and services 2014
11
systems, ranging from accounting, through timesheet
management and practice management, to human
resources. Which non-payroll systems will depend on
the structure of the organisation, the systems already
in place, and those being used by external service
providers (such as agents and accountants).
No matter which approach is taken, there are also a
number of other factors which should be taken into
consideration, such as the history, reputation, reliability
and financial security of the software developer or
service provider, its size, and how easy it will be to find
and/or train staff to use the system or service.
There are numerous providers of payroll software
and services out there and finding the right one for
any particular organisation is not easy. This is one of
the reasons why some employers choose to involve
specialists in the selection process. For a small entity,
this may mean asking the advice of an external
accountant or bookkeeper, or following the lead of the
organisation that is providing your workplace pension
scheme; a larger organisation may involve a specialist
consultant, or put together a ‘project’ team.
Myriad factors can potentially impact on your
choices, not least those listed above and in 2
Understanding your requirements. It is important to
recognise that each of these approaches, or each
combination of approaches, will create its own quite
different list of perceived advantages and disadvantages,
because of the unique nature of each organisation.
4.1 IN-HOUSE OR IN THE CLOUD?
At the simplest level this is a choice between software
applications which live on your computer systems
(along with the associated data) and software and
data that live in the cloud on computers operated by a
third-party service provider.
As with other cloud services there are myriad potential
scenarios involving third-party providers. They include
payroll software applications that are made available
‘on-demand’ using the SaaS delivery model: software
is licensed to multiple users on a subscription basis and
is centrally hosted in a ‘public cloud’ by the developer.
It is also possible to access payroll software in a ‘private
cloud’: software licensed to you is installed on servers
12
that belong to you or to the service provider, which
then operates these on your behalf – providing varying
degrees of service. There are also other variations on
the cloud theme.
Whichever approach you opt for will require some effort
(and input) from within the company, but because
payroll must be regularly and repeatedly updated to
reflect legislative changes (unlike many other types of
business software), this increases the ‘house-keeping’
burdens associated with on-premise applications.
In any scenario it is important to ensure that the
personal data collected by the payroll system is treated
in a manner that complies with the Data Protection
Act 1988. As approaches to payroll processing and the
information that is collected and stored change, so do
the associated data protection responsibilities.
For example, The Pensions Regulator requires
employers to keep auto-enrolment information for
six years and opt-out information for four years, and
to make these records available to the regulator if
requested. While this will not result in a breach of the
Act, employers should obtain employees’ consent to
transfer personal data and auto-enrolment information
to external pension scheme administrators.
(You can learn more about your responsibilities under
the Data Protection Act and what these entail at
ico.org.uk/for_organisations/data_protection.)
Like other people-related processes, payroll is an
area where data protection compliance is rarely easy,
but it may be more difficult to manage with some
public cloud offerings, as your ability to ensure and
enforce the necessary procedures and precautions is
dependent on the behaviour of a third-party service
provider.
4.2 MANAGED SERVICE?
Many factors can influence the decision to choose
either an in-house or managed service approach to
payroll processing. Handled properly, the latter will
almost certainly remove many of the administrative
and compliance burdens associated with payroll.
Equally, if handled properly, so will in-house payroll
software – and the relative cost benefit analyses are
going to vary in each scenario.
Choosing payroll software and services 2014
The Professionals’ Choice
Payroll Professional
Designed from the ground up as a bureau solution,
Star Payroll Professional delivers everything you would
expect from a payroll solution and more.
Options include:
• Bureau Management System
• Auto-Enrolment module
• Web-based ePayslips for secure self-service payslips,
P60s and P11Ds
• Unique expatriate functionality
• Specialised Pay Spine solution for the Education sector
Today, Star Payroll Professional is used by over half of the
Top 100 Accountancy practices, and 100s more, to process
the payrolls for over 70,000 organisations. It is the payroll
professionals’ product of choice.
CO
MPU
TH
ANN
T
S
40
R
ER
S TA
Make it your choice too
IVERSARY
EST. 1973
Call us today on: 01923 246414
Email: [email protected]
or visit our website: www.starplc.com
5
Being a bureau
5.1 IMPLICATIONS OF OPERATING
A PAYROLL BUREAU
Many accountants offer payroll services to their clients.
Some firms do this by putting all or some of the
process into the hands of a third-party expert (in the
same way as their clients could), while others opt for
specialist software.
It is possible to provide payroll services to clients
using any one of the many payroll systems out there,
but it can make life a lot easier if you use one of
the packages that have been designed specifically
to meet the needs of a bureau, as it will offer extra
administration and reporting facilities. However,
because of the range of payroll needs an accountancy
firm will find among its clients, the software for
running a payroll bureau needs to be highly flexible
and offer a very broad range of features (see 2
Understanding your requirements).
Some clients (and hence some firms) will need to
handle payrolls not just for the UK, but also for Ireland,
the Isle of Man, the Channel Islands and/or multiple
international regions. Some companies will need
software that can handle specialist payrolls for areas
such as construction, educational establishments,
public sector bodies and doctors surgeries. Integration
between payroll software and other applications can
also be important.
Pension auto-enrolment is creating additional
complexity for employers and the firms providing
their payroll services; they must all decide how much
of the burden they are going to take on – and find
out what payroll software and services can do to help.
Although many payroll providers offer functionality
for auto-enrolment assessment and communication,
approaches to data management and segregation vary
– as do capabilities. Most payroll software and services
can meet the needs of NEST and NOW: Pensions;
other providers are less well served.
Because of the need to run multiple payrolls, there are
also a number of other significant features that need
to be considered, and these are summarised in the box
on the following page.
14
Choosing payroll software and services 2014
The way that the software is licensed can make a
big difference to how much it costs to use it as the
basis for a bureau service, so this also needs careful
consideration. Some (but not all) software developers
charge on the basis of the number of employees
or payroll clients, so even if your bureau has only
a handful of users today, you need to think about
tomorrow.
The availability of support, the way it is provided,
the experience and skill of those providing it, and
the associated costs also merit careful consideration.
Therefore, it is worth asking associates at other firms
about their experiences, getting reference sites from
any software or service providers you are considering,
and checking social media for insights into the pros
and cons of various products, services and providers.
PRACTICE MAKES PERFECT
Accountants who are using payroll software to run
a bureau can benefit from a number of cost-cutting
and labour-saving features such as:
• ability to process multiple clients simultaneously;
• ability to process tasks simultaneously across all
clients;
• a comprehensive but flexible range of reports
and formats;
• administrative support for pensions autoenrolment;
• bulk import of payroll data;
• composite year-end routines;
• import and export of CSV files from and to
accounting systems and spreadsheet-based
management reports;
• export to, or integration with, multiple providers
of pensions and other providers of
auto-enrolment products and services;
• links to other systems such as accounting, tax
and practice management;
• multiple payslip formats and delivery
mechanisms;
• multi-user capabilities;
• rapid integration of legislative updates;
• unlimited employees;
• visibility of multiple pay periods;
• wide range of utilities (including data
conversion).
Choosing payroll software and services 2014
15
6
Reviews of payroll
solutions
Access
TARGET MARKET
Access Group provides a wide range of payroll and human resources
solutions, including Access SelectPay software and Access Payroll
Services, its bureau and managed services offering. Access payroll
solutions can scale to meet the needs of small and larger businesses
and non-profit organisations, ranging from around 10 employees to
more than 10,000 employees.
All of Access’s payroll solutions offer comprehensive payroll preparation
and processing functionality with extensive management and statutory
reporting facilities, plus a lot more – such as electronic payslips, P11D
processing and integration with other Access software and services.
Access SelectPay and Access Payroll Services can both unite payroll
with web-based human resources functionality through SelectHR (for
medium-to-large organisations) and aCloudHR (for small businesses).
The Access suite of integrated business management software also
includes, enterprise resource planning, finance, business intelligence,
professional service automation, and supply chain solutions.
USER BASE
More than 130,000 employees get paid with SelectPay. More than
1,700 organisations pay their employees with Access payroll solutions,
including Access Payroll Services.
COST
Prices are available on request.
CONTACT DETAILS
Wtheaccessgroup.com and accessacloud.com
T +44 (0)845 345 3300
16
Choosing payroll software and services 2014
OVERVIEW
Access Group began more than 20 years ago as a developer of entry-level
accounting and business systems; now its suite of integrated business
management software ranges from customer relationship management,
through finance, to professional service automation. Access human
resources and payroll solutions include SelectHR, aCloudHR, PayrollSE
and SelectPay. In May 2014 this range was extended with Access Payroll
Services, which was created after Access acquired Action File, a long-time
partner and provider of payroll bureau and managed services.
Access SelectPay and Access Payroll Services both provide tools to help
employers automate core payroll calculations and deductions and
streamline many of the processes associated with payroll preparation,
administration, and statutory compliance, so that users can input and
output the required data quickly, easily and accurately. All Access payroll
solutions are recognised by HMRC for their PAYE real time information (RTI)
functionality, which includes full payment submission (FPS), the employer
payment summary (EPS), and NINO Verification Requests (NVR).
Access has enhanced its payroll solutions to provide employers with tools
to support workplace pension auto-enrolment. SelectPay automatically
identifies employees who are eligible to be auto-enrolled onto a qualifying
pension scheme, and helps employers to handle other related activities
such as postponement, opting out and re-enrolling. A SelectPay module
exports files in the format that NEST needs for upload, and opt-out files
from NEST can be imported into SelectPay; support for other providers of
workplace pensions will follow.
As well as providing core payroll functionality, SelectPay goes beyond
remuneration to decrease administration, by streamlining and simplifying
many key payroll processes. For example: there are user-friendly ‘wizards’
to guide users through activities such as adding new starters; the ability
to preview the effect any calculation has on net pay, at any time, and the
option to send payslips (and forms such as P60s) via email. It also has a
comprehensive collection of monthly (and exception) reports and statutory
declarations, which can all be output to print, screen, spreadsheet or fax.
support for RTI and download of notices from HMRC;
customisable data input spreadsheets; internal checking
of payroll before submission to client; BACS payments;
payslips; access to the enquiry and reporting tool
‘Explorer View’, plus a suite of standard payroll reports
and up to three customised reports in Microsoft Excel
format.
Access Payroll Services and SelectPay both integrate
with aCloudHR (a web-based HR solution for small
businesses) and Access SelectHR (a configurable webbased solution for medium-to-large organisations).
Dynamic links between payroll and HR and other Access
solutions can reduce duplication and improve the
accuracy and timeliness of information – in many areas.
For example: timesheet information can be imported
directly into SelectPay from an integrated project
costing module; periodic payroll data can be updated to
the nominal ledger in full detail or at summary level.
CONCLUSION
A payroll solution that is part of an integrated suite of
products and services has the potential to deliver many
benefits to the payroll function and beyond – improving
the quality of information throughout an organisation
– and this combines with the range of Access payroll
solutions and delivery mechanisms available to give
customers a very wide range of options. As SelectPay
is built on Microsoft technology – it uses the scalable
SQL server platform and incorporates the intuitive
‘Ribbon’ interface – it is well-positioned to adapt
and take advantage of advances in technology. So
employers can be reassured that as their organisation
grows and changes, their Access payroll solution has the
functionality, flexibility and scalability to do so too.
Some SelectPay functionality can be accessed online, as the software can
be installed on the client’s own servers or be hosted by Access (in a shared
or dedicated cloud environment). SelectPay uses online portals for payroll
data capture and presentation, with further online portals available for
payslips and expenses. Organisations that want to access all of their payroll
functionality online may prefer the bureau and managed services solutions
offered by Access Payroll Services – which also supports data output for
multiple providers of workplace pensions.
With Access Payroll Services and a web-browser, authorised users can
input and access payroll data and reports anywhere, anytime, while
Access handles software updates and maintenance and takes care of data
security – with regular backups and disaster recovery. Features include: full
Choosing payroll software and services 2014
17
Ceridian payroll solutions
TARGET MARKET
Ceridian provides a range of integrated cloud payroll and HR software
and managed services. They aim to meet the payroll needs of a wide
cross-section of organisations, ranging from micro-businesses with just
a handful of employees, through small- and medium-sized entities,
to major corporates with hundreds of thousands of employees, and
international organisations with operations in multiple locations and
countries.
Ceridian’s integrated HR and payroll cloud solution HRevolution
offers modules in payroll, HR, workforce management, pension autoenrolment, analytics, expenses, mobile apps and support for employee
assistance programmes (EAP).
USER BASE
Ceridian has been providing payroll services in the UK for more than
50 years (and was previously known as Centrefile). Globally, it services
more than 130,000 customers and 25 million employees, in 50
countries. In the UK it pays over 2 million employees per month and
processes 24 million payslips a year.
COST
Prices for Ceridian HRevolution and other Ceridian payroll solutions are
available on request.
CONTACT DETAILS
Wceridian.co.uk
T +44 (0)800 0482 734
18
Choosing payroll software and services 2014
OVERVIEW
Ceridian has been providing payroll software and services for decades
and this is evident in the breadth of functionality, and the flexibility and
scalability on offer. Its cloud-based SaaS payroll and human resources
solution HRevolution boasts a suite of integrated modules for payroll, human
resources, workforce management, pension auto-enrolment, analytics,
expenses, mobile apps and EAP. It is available on any device (including
tablets and mobile phones) at any time.
HRevolution offers employers the opportunity to retain control of their
payroll and operations (in-house) but wave goodbye to (what can feel like)
relentless software upgrade cycles, and rely on Ceridian to manage the
servers where the payroll data and software reside (securely) and take care
of legislative and functionality updates – with support from a dedicated
team of payroll experts. HRevolution is also used as the basis for Ceridian’s
cloud-based payroll services, which provide a broad range of managed
services and outsourcing for organisations of all shapes and sizes. So
employers and employees using Ceridian payroll solutions always use the
most up-to-date version.
HRevolution provides core payroll functions such as earnings, deductions
and taxes, plus the online RTI reporting which is now a normal activity
for almost all employers. In addition, the software can be tailored to
meet special needs, such as paying employees in a non-standard manner.
Results are available instantly for payroll changes effective from any time
and there is flexibility around when you run the payroll (this allows you
to deal with late notifications and changes). The input and output of
data and the retrieval and viewing of payroll records and reports are
simple. The library of payroll reports provides summary data at company
level, with the option to drill down into the detail (for departments and
employees, for example), and to analyse figures for and across single or
multiple payrolls – and data can be exported using various methods and
formats. Other strong areas of functionality include online payslips and
P60s with helpful interactive tooltips to explain the pay elements (this can
reduce the number of queries from employees), easy salary sacrifice set-up,
payment to Channel Islands employees as standard and the ability to make
automatic payments to third parties.
of needs, priorities, budgets and IT infrastructures – to
meet their core payroll needs and comply with related
regulatory demands; it has optimised its products and
services so that they can be accessed from any mobile
device, meaning workers can access payroll-related data
and perform payroll-related transactions on the go.
Employees can, for example, view (and print) present
and past payslips – there’s even a video on YouTube
showing how to do this.
CONCLUSION
Ceridian was one of the first providers of outsourced
UK payroll, one of the first to integrate HR software
and services and one of the first to adopt the cloud
delivery model. Its products and services reflect the way
that technology evolution and increased regulation are
transforming the workplace.
As Ceridian customers can choose which payroll (and
HR) processes they want to handle in-house, using
HRevolution, and which they want to hand over to
Ceridian, its solutions seem flexible enough to meet
employers’ needs today and tomorrow. So, if you are
uncertain about which approach to payroll (and/or HR)
is right for your business, you anticipate your needs
changing some time soon, or you want to make the
most of emerging technologies, a Ceridian solution
could provide the answer.
Ceridian was quick to address pensions auto-enrolment (AE), working
with some of the UK’s largest employers to develop solutions to minimise
the impact of the AE legislation. Following on from this, it has developed
a streamlined SME version of its off-the-shelf AE solution, which has
been designed to be set-up and switched on quickly and easily and help
employers to cost-effectively meet the needs of their pension providers. As
payroll data holds much of the information required to determine the AE
status of workers, and calculate pension contributions and deductions for
eligible workers, this SME solution is delivered through HRevolution.
Ceridian has a history of embracing technology and using it to improve
its payroll products and services. It has used the cloud-delivery model
and browser-based access to enable organisations – with a broad range
Choosing payroll software and services 2014
19
Employer Services Limited (esl)
TARGET MARKET
Employer Services Limited (esl) offers payroll, HR and business services
that can meet the needs of many sizes and types of organisation.
Clients range from start-ups and micro-businesses to much larger
organisations with thousands of employees.
The suite of payroll services from esl includes online payroll, managed
payroll services and electronic payslips and its international payroll
services can provide compliance with local legislation in more than
100 countries. A separate SaaS product, PaySuite, is available for
bookkeepers and accountants who provide their clients with a payroll
bureau service (and it has been selected by Intuit, to power the
integrated payroll in its QuickBooks accounting software – see page
22).
esl also provides: pensions auto-enrolment services and HR solutions
(in partnership with CIPHR, a SaaS provider of HR software) that
range from employee personal development to effective resource
management; plus business services that cover expenses management,
time and attendance, BACS and faster payments.
USER BASE
esl have been providing payroll services for over a decade. In the UK esl
generate over two million payslips per year and provide international
payroll services to over 100 countries. PaySuite offers a true cloud
payroll solution specifically developed for accountants.
COST
Prices for esl payroll, HR and business services are available on request.
CONTACT DETAILS
Wemployerservices.co.uk
T +44 (0)1277 230656
20
Choosing payroll software and services 2014
OVERVIEW
In 1999 esl ran its first payroll in the UK. Since then, it has developed the
range of payroll, HR and business services it now uses to provide a broad
range of employers with the payroll functionality and processes they
need to comply with local regulations in the UK and more than 100 other
countries.
Over the past five years esl has researched what is important to
organisations regarding people management through payroll and worked
hard to raise the service level. It has, for example, cut manual intervention,
reducing paper usage for payslips and reports by introducing epayslips and
the esl Gateway for auditable transactional information.
Behind the ‘bespoke’ approach taken by esl, its payroll offerings break
down into:
• fully managed services (a complete end-to-end service, with esl
becoming your payroll department);
• online software (hosted at the secure esl data centre, available 24/7 for
real time payroll data entry, and supported by traditional bureau services
from esl);
• on-premise software (installed on your company’s computers and used
to run your own payroll processes in-house, implemented and supported
by esl).
As the emphasis is on personalised service and support, each payroll
customer has a dedicated esl account manager. Core payroll functionality
and compliance is a given. Providing businesses with people management
services, esl aims to assist young and growing companies with their
strategic development and help more mature and complex organisations
to review and streamline their processes.
esl will automate all payroll calculations, making BACS transmissions on
your behalf, and providing access to payroll documents and reports at
any time, via its online portal (the esl Business Gateway). Its epayslips are
easy for employers and employees to use, and when absence or sickness
necessitates it, esl can be on hand to step in and become your payroll
department.
For the past two years esl has worked closely with providers of workplace
pensions including Scottish Widows, NOW: Pensions and The People’s
Pension. esl provides tools to automate routine tasks such as employee
assessment, to perform the necessary pension calculations, and provide
capabilities for employers that need to administer auto-enrolment and
comply with The Pensions Regulator’s requirements.
are compliant with the regulations and will provide
good quality records for regulator and for workplace
pension providers (whether payroll is done in-house or
externally).
As well as helping employers to understand the
resources required and the administration involved, esl
can help them to develop, test and implement the new
processes, record keeping and reporting systems. The
esl auto-enrolment support services include:
• designing an implementation programme based on
the staging date;
• meeting with pension providers to discuss project
strategy;
• establishing procedures and programmes to ensure
the required duty of care and active stakeholder
communications;
• developing HR systems to reflect new processes; and
• ensuring the payroll system can support required
functions.
CONCLUSION
At esl the focus is very much on providing a
personalised, high-quality service that’s tailored to meet
individual customer needs by engaging with dedicated
account managers.
esl’s range of flexible solutions, service contracts
incorporating regular review, and bespoke and
personalised services can support growth and change
– witness its extensive support for businesses grappling
with pensions auto-enrolment.
If you want a provider that puts as much emphasis on
its people, principles and professionalism as it does
on its ability to meet your payroll needs, esl should
probably be on your short list.
esl will work with individual employers to help them understand the
implications of auto-enrolment in terms of cash flow, budgeting for
third-party advice and ensure that any existing or new payroll provisions
Choosing payroll software and services 2014
21
Intuit QuickBooks Online
TARGET MARKET
Intuit offers integrated payroll functionality (powered by PaySuite) in all
versions of QuickBooks Online: Simple Start, Essentials and Plus, as well
as in QuickBooks Online Accountant (which is for accountancy firms).
QuickBooks Online payroll provides functionality that aims to provide
small- and medium-sized businesses with payroll administration and
statutory filing tools that can be easily used by those with or without
any payroll or accounting expertise.
USER BASE
QuickBooks Online has more than 400,000 active small business
subscribers (and even more users) worldwide. It is available in over
125 languages and has customers in 120 countries, including its home
(and biggest national user base), the US.
QuickBooks also makes payroll functionality available from within its
desktop small business accounting solution QuickBooks 2014.
COST
Accountants in practice receive free access to QuickBooks Online
Accountant which they can use to run their own accounts and payroll.
For firms that want clients to use QuickBooks, Intuit makes QuickBooks
Online Plus available for £4.99 per month for each client.
For businesses that deal direct with Intuit, Simple Start costs £9 per
month, QuickBooks Online Essentials is £19 per month and QuickBooks
Online Plus is £29 per month.
For the first five employees, payroll is included free in the price of all
versions of QuickBooks Online. There is a charge for payroll, from six
employees upwards, of £1 per employee, per month. QuickBooks
Online includes unlimited freephone and online chat support.
Trial versions of QuickBooks Online are available free for 30 days
(without a credit card). There is no minimum contract period and
monthly subscriptions can be stopped at any time.
CONTACT DETAILS
Wintuit.co.uk and intuit.co.uk/onlineaccountant
T +44 (0)808 168 9533
22
Choosing payroll software and services 2014
OVERVIEW
QuickBooks Online Simple Start, QuickBooks Online Essentials and
QuickBooks Online Plus all offer small and medium-sized businesses
seamless, integrated access to payroll functionality (powered by PaySuite),
on top of basic bookkeeping tools that range from tracking cash flow and
expenses, to creating quotes and producing invoices. The QuickBooks
Online Accountant version connects accounting practitioners and clients
who are QuickBooks Online users, so that they can work together more
closely and effectively.
Every payroll function is available from within QuickBooks Online, via the
‘employees’ tab, and is never more than a couple of clicks away. Users
do not need to sign in with different passwords or move data between
multiple systems (manually or electronically) or worry about finding their
way around. Integration between QuickBooks Online and the payroll
simplifies initial payroll set-up tasks, and there are a number of ‘how to’
videos and a webinar recording to guide even the most inexperienced user
of payroll software through this one-time exercise. It leads them through
processes such as creating a company and its payroll and entering personal
and employee details.
Businesses already using QuickBooks Online will find that information such
as company name and trading address are carried over into the payroll,
during set up, and the Unique Tax Reference is automatically generated.
Because payroll is part of QuickBooks, accounts are also automatically
updated, to reflect payroll figures. For example, after the payroll run,
current liabilities will include payroll clearing, tax and National Insurance
(NI).
Entering personal and employee details is easy – as is changing them.
Calculations are all automated: after annual salary has been input, the
system calculates monthly or weekly salary and hourly rate, for example,
and after the hours worked by staff are input, the system will automatically
calculate tax and NI. Payment methods include cash, cheque and
electronic bank transfers (including BACS), and the payroll accommodates
variations such as: different approaches to handling statutory sick pay (for
hourly paid and salaried employees); repeat payments and deductions
such as student loans and directors’ NI. Options for taxable and nontaxable one-off payments range from holiday pay and bonuses to expenses
and redundancy pay. It is worth noting that only weekly and monthly pay
intervals are supported.
employer payment summary, employer alignment
submission and NINO verification. P45s can be created
in a couple of mouse clicks, and at the end of the tax
year all employee P60s can be done in one go.
At the time of writing, QuickBooks Online did not
provide functionality for pension auto-enrolment.
Most of the small and medium-sized businesses Intuit
serves have staging dates between April 2015 and April
2017 for auto-enrolment, and the required payroll
functionality will be added to QuickBooks Online well
in advance of these dates. To help small employers
plan for auto-enrolment, the Intuit website provides
high-level information, including the steps necessary
for compliance. Auto-enrolment functionality is already
available in the desktop version of Intuit’s accounting
software QuickBooks 2014.
CONCLUSION
For many small business employers the demands of
payroll can seem awe-inspiringly complex. But this
complexity is masked by the apparent simplicity
of QuickBooks Online. It’s easy to find the payroll
functionality you need, minimising manual input and
automating calculations both reduce the likelihood
of errors. There’s plenty of on-screen help and online
chat support, and the video-tutorial for first time users
is excellent. QuickBooks Online could make payroll
painless for even the least experienced business user
and take some of the pain from the payroll process for
more experienced users too – making it good news for
their accountants too.
All payroll functionality is located via clearly labelled on-screen buttons and
drop-down menus. Reports such as gross to net, and the P32 Employer
Payment Record are easy to create (and export to Excel or output as PDFs);
payslips can be checked at any point during the payroll process and when
this is complete they can be printed or created as PDFs and sent as emails.
Submission of Real Time PAYE Information (to HMRC) is as simple as
selecting the report and pressing a button – for full payment submission,
Choosing payroll software and services 2014
23
Star Payroll Professional
TARGET MARKET
The Star Payroll Professional system is used to provide bureau services
by more than 450 accountancy firms, ranging from the smaller firms
up to the biggest networks: more than half of the top 100 firms and
all of the top 10 are users. It is also used by a number of commercial,
financial and public sector organisations.
The software provides all of the core functionality you would expect
from a comprehensive bureau payroll solution, and more. Optional
extras include an integrated bureau management system, functionality
for pensions auto-enrolment, educational and expatriate payrolls, webhosted employee self-service electronic payslips and an integrated or
standalone P11D employee benefit system. Star offers links to external
human resource solutions, including Octopus HR plus a range of
conversion routines for Sage, Iris and various other accounting systems.
User support is available on the phone and through a client portal and
online helpdesk.
USER BASE
Star has been supplying payroll software, dedicated support and
services for more than 40 years and currently Star Payroll Professional
processes the pay for more than 70,000 UK organisations per year.
COST
Pricing for Star Payroll Professional is available on request.
CONTACT DETAILS
Wstarplc.com
T +44 (0)1923 246414 (UK) ; +353 (1)661 3030 (Ireland)
24
Choosing payroll software and services 2014
OVERVIEW
Star is a long-standing developer and supplier of practice management
software and Star Payroll Professional was originally designed for bureau
use by firms of accountants, so this is a true bureau product. It can process
multiple payrolls and it has specialist functionality and utilities that can be
used to simplify and streamline payroll processes and their management. It
almost goes without saying that it offers the core compliance functionality
needed from payroll software, but it can also meet the needs of employers
with some highly specialised requirements.
Star Payroll Professional feels intuitive – even if you aren’t a payroll
professional. Configuration of individual payrolls is straightforward. Manual
input is minimised and combined with built-in controls, checks and
balances, to reduce the likelihood of input and processing errors. A range
of time-saving utilities help to make information easy to access and reports
easy to generate. Integration is strong with other types of software, such
as in-house and client accounting systems, as are data import facilities, so
users can get data in quickly and accurately.
The product’s flexibility can be highlighted by its options for admin, data
and pay run import. They are designed for initial data take-on and updates
to existing data, such as adding employees or changing an employee’s
address or marital status. Users can add and/or amend and define exactly
which information they want to import. For data take-on there is standard
import functionality plus import utilities for other payroll products, which
minimises the need to re-key static data if a commercial user transitions
from a legacy system, or if a bureau takes on a new client.
Managers and authorised staff can view the status of
all or selected payrolls, associated processes and ‘to do’
lists to see what’s overdue, what needs doing today and
what will need doing next week or next month. They
can drill down from summary information to actions
such as allocating/re-allocating payrolls to staff, or
authorising/approving their work. Workflow processes
can be created with the help of templates, and used to
streamline: activity for one or multiple clients, cyclical
tasks such as P11D processing and submission, and
different types of payroll – ranging from those with one
or two stages to more complex, multi-stage payrolls.
CONCLUSION
Star Payroll Professional provides the high levels of
functionality and flexibility that commercial, public
sector and bureau organisations need from their
payroll software, as well as offering reassuringly high
levels of control. With its intuitive look and feel, it
makes the complexity of payroll and challenges of
operating a payroll bureau seem deceptively simple and
straightforward.
It’s easy to get data out too. The epayslips self-service facility lets employers
provide 24/7 access to payslips and P60s via a secure, hosted website. Star
Payroll Professional also has extensive reporting facilities, with hundreds
of standard and user-defined reports, plus facilities to automate the
configuration, production and filing of reports. As well as complying with
HMRC PAYE Recognition Scheme by enabling users to submit payroll
information online and in real time from within Star Payroll Professional, an
optional integrated module addresses pension auto-enrolment needs, with
its ability to provide data feeds for any pension provider and employee
statutory notices.
Control is a priority. There is a full audit trail for changes and processes
and every screen has view, edit and calculation privileges, so the rights
of individual users and groups can be easily controlled and configured.
This strong blend of functionality, flexibility and control extends to the
integrated bureau management system, with its tools for running multiple
payrolls and operating a bureau. Specialist functionality, additional
administration, control and management features, combine to ensure that
all payroll work can be undertaken in a timely manner and all deadlines
can be met.
Choosing payroll software and services 2014
25
7
Supplier directory
There is a wide range of payroll systems and services out
there. Some of them are provided for use on in-house
systems, some live in the cloud and some providers
offer both; there are systems that can be adapted for
bureau use and others designed specifically for this
purpose (often as part of a suite of products aimed
at accountants in practice). Some providers offer just
payroll facilities, some provide payroll and HR; others
provide one or both as an integral part or an add-on
to accounting and business software, a human capital
management solution, or something more extensive.
Technology advances mean that what’s possible in
terms of business practices and business models in the
payroll software and services market is in a constant
state of flux. This makes it difficult to categorise
some of what’s on offer, let alone draw bright lines
between categories. For these and many other reasons,
providing a comprehensive list of what’s available, with
information on how all of these products and services
can be accessed and delivered, is beyond the scope of
this guide.
The following list is a subset of the very many providers
offering payroll software and services in the UK. It is
intended purely for guidance; the inclusion or omission
of any particular product or service should not be
interpreted as an indication that it will or will not meet
your particular needs.
26
Choosing payroll software and services 2014
PAYROLL SOFTWARE AND SERVICES PROVIDERS
Able Internet Payroll
ableinternetpayroll.co.uk
+44 (0)20 8438 9791
Online payroll software including a bureau product.
Access
theaccessgroup.com/solutions/hr--payroll.aspx
+44 (0)1206 322 575
Payroll, HR and human capital management solutions;
part of a suite of business software.
Advanced Business Solutions
advancedcomputersoftware.com/abs/human-resourcessoftware.php
+44 (0)845 160 6162
Payroll software and services; part of a suite of business
software.
JustGLOBALPayroll
justglobalpayroll.com
+44 (0)1276 805 844
Payroll services for business and accountancy firms that want
to provide a bureau service.
Frontier
frontiersoftware.com
+44 (0)1276 451551
Provider of payroll and HR software and services; includes
bureau product.
Keytime
keytime.co.uk
+44 (0)161 484 3500
Payroll bureau software; part of a range of tools for
accountants in practice.
Ceridian
Ceridian.co.uk
+44 (0)800 733 337
Payroll software and services; part of a broader range
including HR software and workforce management.
MidlandHR
midlandhr.co.uk
+44 (0)115 945 6000
Payroll software and services; part of range of HR and talent
management solutions.
Computastore Ltd
superpay.co.uk
+44 (0)161 832 4761
Payroll software with multi-company features.
Moneysoft
moneysoft.co.uk
+44 (0)845 644 4555
Payroll and bookkeeping software for business and
accountants in practice; includes multi-company features.
(see *below on bureau use).
Corporate Payroll Solutions
payroll-solutions.co.uk
+44 (0)1442 285460
Online payroll and HR software and services.
Employer Services Limited (esl)
employerservices.co.uk
+44 (0)1277 230656
Payroll services and software including bureau product and
international payroll services.
Intuit intuit.co.uk
+44 (0)808 168 9533
Payroll services provided in all versions of QuickBooks Online
and in QuickBooks Online Accountant. Iris
iris.co.uk
+44 (0)844 815
Payroll services and software including a bureau product;
part of a suite of offerings for business and accountants
in practice.
(see * below on bureau use).
Moorepay
moorepay.co.uk
+44 (0)845 184 4615
Software and services for payroll and HR.
QTAC
qtac.co.uk
+44 (0)117 9353500 Payroll services and software, including a bureau product.
Sage
sage.co.uk
+44 (0)845 111 5555
Payroll software range including a bureau product; part
of a wider suite of products for business and accountants
in practice.
Star
starplc.com
+44 (0)1923 246414 (UK)
+353 (1)661 3030 (Ireland)
Payroll software for businesses and accountancy firms;
includes bureau functionality; part of broader range of
practice management and professional service products.
*Note: Any payroll software that can handle multiple companies can be adapted to run a payroll bureau, in theory. In practice, the results will
be very mixed, despite the availability of administration and reporting features designed specifically to facilitate running a payroll bureau.
Choosing payroll software and services 2014
27
8
Useful websites
hmrc.gov.uk/softwaredevelopers/paye/rti-software-forms.htm
HMRC-recognised PAYE software with information on RTI functionality.
hmrc.gov.uk/payerti/getting-started/payroll-system.htm#5
Software packages and other payroll options.
ico.org.uk/for_organisations/data_protection
Data protection advice from the Information Commissioner’s Office.
thepensionsregulator.gov.uk/employers/business-software.aspx
Advice on selecting payroll software.
28
Choosing payroll software and services 2014
ePayslips Solutions
Our solution gives you the peace of mind that you and
your employees’ information is handled securely.
There is no need for specialised printing and payslips can be viewed 24/7.
The costs savings are significant and creates a “greener solution” than
traditional printed payslips.
Why choose esl for ePayslips?
75% reduction in paper usage
3% reduction in energy usage
Winner of the Green Apple Award 3 years running
24/7 access for employees to their documents
Fantastic support
“Our satisfaction and confidence with esl’s ePayslips service has gone from
strength to strength. This solution was extremely easy to implement and
has not only saved us time and reduced costs but it has been well
received by our employees. I would have no hesitation in recommending
this service to other organisations.’’
Cheryl McLaughlin
HR Manager, NDC Infrared Engineering, Inc.
To find out more contact esl
Call 01277 230656 or email us at [email protected]
Choosing payroll software and services 2014
www.employerservices.co.uk
29
ICAEW’s IT Faculty provides products and services to help its members make
the best possible use of IT. It also represents chartered accountants’ IT-related
interests and expertise, contributes to IT-related public affairs and helps those in
business to keep up to date with IT issues and developments. As an independent
body, the IT Faculty is able to take a truly objective view and get past the hype
surrounding IT, leading and shaping debate, challenging common assumptions
and clarifying arguments.
For more information about the IT Faculty please visit icaew.com/itfac
ICAEW is a world leading professional membership organisation that
promotes, develops and supports over 142,000 chartered accountants
worldwide. We provide qualifications and professional development, share
our knowledge, insight and technical expertise, and protect the quality and
integrity of the accountancy and finance profession.
As leaders in accountancy, finance and business our members have the
knowledge, skills and commitment to maintain the highest professional
standards and integrity. Together we contribute to the success of individuals,
organisations, communities and economies around the world.
Because of us, people can do business with confidence.
ICAEW is a founder member of Chartered Accountants Worldwide and
the Global Accounting Alliance.
www.charteredaccountantsworldwide.com
www.globalaccountingalliance.com
ICAEW
Chartered Accountants’ Hall Moorgate Place London EC2R 6EA UK
T +44 (0)20 7920 8481
[email protected]
icaew.com/itfac
linkedin.com – ICAEW IT Faculty
twitter.com/icaew_ITFaculty
facebook.com/icaew
£45
© ICAEW 2014 TECPLM13110 07/14