What Should You Consider When Looking At Payroll Solutions For Large Companies?

payroll solutions for large companies

Payroll solutions for large companies are becoming increasingly in demand as organisations explore the options available to them to improve their payroll processes. There are many reasons why they might be thinking about this. It might be to improve overall performance and accuracy. It might be to have all the benefits of a more reliable solution that’s less at risk from problems like sickness absence. It might be to achieve greater efficiencies and free employees up from transactional activities, helping them to focus more on other value-added areas.

Whatever the motivation behind it, more large companies are realising the potential that today’s payroll solutions can offer them.

Clearly there will be some core requirements about what a payroll solution has to offer no matter what size the company is. Every employer needs an efficient payroll that pays its employees correctly and on time. It must meet all compliance and reporting demands. Payroll legislation is complex and it’s time-consuming making sure that every aspect is taken care of, and all changes are implemented in good time. An effective payroll solution will take care of this. Companies must also have confidence that whatever payroll solution they opt for, it will be fully secure and GDPR compliant.

But equally, there will be other points to consider when identifying the most suitable payroll solution for a large company. They include the following:

Payroll solutions for large companies: five points to consider

  1. 1. The complexity of your payroll

payroll solutions for large companies complexity

The larger a company is, the more likely it becomes that the payroll will have increasingly complex requirements. There might be variability of pay frequency: some employees might be paid every week, some every fortnight and others every month. Some employees might be paid an annual salary, while others might be on an hourly rate. And there might be factors like overtime and time in lieu that must also be taken into account. There’s an increased likelihood of variability of working patterns too which a payroll solution must be able to deal with.

You might also require a solution that can accommodate large numbers of seasonal and temporary workers. It’s important to check that any potential payroll solution you are considering is flexible enough to cope with all of these variables.

  1. 2. The level of integration required

payroll solutions for large companies amount of users

Larger companies are likely to already have a number of other management systems in place. So it’s worth exploring any opportunities to integrate relevant systems and processes, such as HR systems, with the payroll solution. For example, compatibility between your HR systems and proposed payroll solution could save time and improve accuracy by enabling information to be shared directly between the systems, avoiding the need for a large volume of data to be manually inputted.

  1. 3. How many people need to be included in the payroll system?

payroll solutions for large companies level of integration

One of the most important considerations is how many people the payroll solution will need to accommodate. This will obviously include employees (and leavers as they will need to appear in year-end reporting). But also take into account any seasonal and temporary staff you have too. Make sure the payroll software offers flexible employment options – including the capacity to grow in case your company scales up in the future.

  1. 4. How many sites will it need to cover?

real living wage 2021

Companies that operate across several locations might currently run their payroll by site, but payroll solutions can offer a simpler way to manage the payroll centrally and reduce the risk of non-compliance. A payroll solution with a mobile app or mobile-friendly website can be especially beneficial for companies that have different locations and can be useful where a proportion of the workforce works remotely too.

  1. 5. Reporting requirements

outsourced payroll provider effectiveness

Beyond the mandatory reporting required with every payroll, what is the level of additional reporting you need? Large companies may require breakdowns across different departments and cost centres for example, so it’s important to make sure the payroll solution you are considering is able to meet all of the reporting requirements you have.

What are your options for possible payroll solutions?

payroll processing data quality

  • Upgrading your payroll software

One potential payroll solution is to look at payroll software options aimed at larger companies. You might want to retain payroll expertise internally but need to find software that helps your employees manage all of their payroll responsibilities more effectively. By upgrading your payroll software, you can access a whole range of features that can help achieve this.

For instance, some software will provide more extensive support with features such as pension interfaces for pension auto enrolment. Cloud-hosted payroll software can offer additional benefits as it’s accessible from any location, enabling payroll to be processed from anywhere with an internet connection. There are many reasons why larger companies could find this suits them: a smoother and quicker data flow across the company; better reporting; and ongoing updates to the software to make sure it remains fully compliant.

Payroll software can also be mobile enabled and can be configured to give employees self-service options too. A self-service portal will give them access to their payroll information and let them easily check things like their payslips, holiday balances, year-end tax information and so on.

  • Outsourcing your payroll

Another alternative payroll solution for large companies can be opting for an outsourced payroll service. Companies can choose a fully managed payroll service where every aspect of their payroll is outsourced to a payroll provider who will act as its entire payroll department. Many large organisations find it is more cost effective and ultimately less time consuming to outsource their payroll, rather than employ a full department of payroll specialists.

Alternatively, some large companies might prefer a payroll bureau service. This is an option where the company retains a greater level of involvement in payroll activity and suits companies who wish to keep some payroll knowledge in-house. Payroll bureau services can offer some choice over which parts of the payroll process are outsourced to the external payroll provider, and which elements are dealt with internally.

Talk to us about our payroll solutions for large companies

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As the employer, you will always be ultimately responsible for making sure you are complying with all payroll requirements. But an experienced payroll provider will take a lot of the burden off your shoulders. If you would like to talk to us about our payroll solutions, then please do get in contact with us today.