What is Payroll?
Payroll is an essential part of any business that has employees, even if they have only 1 member of staff. The process is important because it helps ensure staff are remunerated for their labour, helping maintain high job satisfaction. Payroll is also an essential element of a company’s accounts, having a significant impact on its profits.
What Is a Payroll System and How Does It Work?
A payroll system is a system that helps keep necessary records and calculate how much each employee is due. Staff will usually use payroll software like the solutions from ByteHR that help to make the task easier and less time-consuming.
As you can probably imagine, payroll can be a complex task if there are many employees. Many organisations will have a wide range of roles and responsibilities, each of which has its own salary, bonuses, fixed / variable allowances and other benefits .
For large companies in particular, this can become a very complex and time-consuming role, while human error is also a potential issue. ByteHR offers sophisticated yet easy-to-use payroll software that will help do much of the work for you.
What Is the Difference Between HR And Payroll?
A human resources (HR) department has the overall responsibility of looking after a company’s workforce. Their roles include just about anything related to the workforce, from hiring and firing to training and recognition.
Naturally, one of the most satisfying aspects of working is being paid, and an HR department will often have the responsibility of ensuring staff are paid correctly. This will include working closely with accounting, while some businesses will leave payroll to the accounting department.
Regardless of who is responsible for ensuring staff are paid, HR is often involved in negotiating with staff over pay-rise requests and similar. This is another essential role because businesses need to find the right balance between how much they pay and employee satisfaction.
Why Is It Called Payroll?
The word payroll dates back to the mid-1700s and is a portmanteau of two separate words: ‘Pay’ and ‘Roll’. In this context, pay means to remunerate staff for their work, while the word ‘roll’ refers to the fact that time to pay staff rolls around periodically (often once a month). Over the years, the word payroll has evolved to mean two things, which are:
- The total a company pays: The word payroll originally meant the total sum a company would pay to its employees. This meaning of the word is still often used today.
- The process: The more modern meaning of the word payroll means the process involved with paying staff, including storing and maintaining data and calculating pay.
What Is Payroll in Excel?
Excel is a well-known spreadsheet software program developed by Microsoft. The popular software is used for a wide range of purposes from keeping records on sales statistics to keeping track of personal finances.
Payroll in Excel means using the software to store information and make the necessary calculations. Excel is versatile in that you choose which information to store, while it is also excellent at making advanced calculations. Such calculations are saved in the spreadsheet so you won’t have to create the formula again each time.
While Excel is a valuable tool for anybody who needs to store data and make complex calculations, it’s not without its drawbacks. For example, you will need to learn and understand the various functions and know how to create often complex mathematical equations.
As such, it makes sense that many businesses have turned to ByteHR for a solution that helps make payroll more manageable. Our software is specifically designed for calculating and executing payroll and offers all the tools the user needs in an easy-to-use interface.
For example, it’s not necessary to add mathematic formulas as you do with Excel and other spreadsheet software. Our platform also offers automation tools that help reduce your workload and ensure payroll occurs accurately and on time.
How Do You Calculate Payroll?
A basic example of a payroll calculation is the employee’s hourly rate multiplied by the hours they worked, minus taxes and other deductions. However, when you take into account overtime rates and other variables, the calculation is often far more complex.
Payroll is also often a matter of working out details such as hours worked, which can be a process in itself that can be unreliable and time-consuming. ByteHR also lets you streamline this process by letting you upload Excel spreadsheets with the appropriate information. Our platform includes smart upload templates so you get the data you need.
Is Payroll Part of Accounting?
Payroll is a key component of a company’s accounting. After all, it has a direct impact on the company’s bottom line. As mentioned, the payroll task is often left to the accounting department, while HR departments are also often involved.
Our software also offers an online leave management system and other features that help simplify the process regardless of who is responsible for the task. If your accounting or HR department is struggling to keep up, get in touch with the team at ByteHR and we will be delighted to see how we can help.
What Makes a Good Payroll System?
With numerous available options, it can be difficult to choose which payroll system is best for you. There is no single answer to the question because every company’s needs are different, but ByteHR is the ideal solution for many businesses.
*Our Payroll software allows you to setup weekly and monthly payment schedules
A good payroll system should have the following attributes:
- Easy to Use: A good payroll system should ideally be intuitive and easy to use. This will help reduce time spent using the system and will also help reduce errors.
- Flexible: Every business has its individual requirements, so a good payroll system should be flexible enough to support businesses of all types. Our platform lets you choose which data to store and calculate, meaning you can customize it to optimize it for your needs.
- Reports: Payroll reports are essential for management teams because they help give them an overall picture of the company’s finance. Our platform lets you create custom reports so you get the information you need, presented in a way that’s easy to digest.
- Automation: A good payroll system will offer powerful automation tools that help reduce workload and human error. For example, our solution will automatically generate bank files and ePayslips so your workforce is paid on time with limited input from your payroll team.
- Integration. Some businesses use multiple systems and your payroll system will work more effectively and efficiently if it can be integrated with 3rd party software. For example, ByteHR lets you upload Excel spreadsheets to our platform, reducing time and human error.
- Reliability: You will need a system that’s reliable so you know your workforce will always be paid on time and accurately. ByteHR systems have been thoroughly tested to ensure a stable platform, while it’s also a good idea to take any payroll platform for a test run first.
What are the benefits of a good payroll system?
A good payroll system can do more than just ensure your staff are paid the right amount on time. For example, our system gives access to helpful reports that let management call the right decisions, helping their business to prosper.
*With ByteHR our payslip transfers support all local and international banks
Another benefit of having a good system is that it can help rectify any discrepancies. All information is recorded electronically, making it easier to identify where errors have occurred.
Payroll is a necessary but often complex process. It can be time-consuming and complex processes, are likely to encounter human errors. The good news is that at ByteHR we have a platform that will help simplify the process, and eliminate any costly mistakes or errors.
Our platform helps calculate payroll in just a moment – a process that would have taken much longer in the past. We also offer tools that streamline processes, including automation that reduces time spent on the process, while also helping to reduce human error.
Overall, our platform helps companies to streamline the payroll process and offers meaningful reports that help you make the right call. If you would like to know more about payroll and how our solutions can empower your business, please feel free to request a free Demo if you’d like to learn more.