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    5 ways to improve your payroll

    Payroll is one of the most important processes in any business as it is vital that your employees are paid accurately and on time. Despite this fact, many businesses do not efficiently manage their payroll processes, are failing to comply with the latest legislation and unnecessarily wasting resource on manual payroll processing methods.

    Not only could this cost your business money and time, but it could also lead to errors which leave your business liable for substantial penalties, not to mention unhappy employees.

    Building on our extensive experience in processing the payroll for many different businesses, our payroll team has compiled their top 5 tips to ensure your payroll is the most efficient it can be.

    1/ Keep on top of the latest legislation

    The payroll landscape can be very quick changing, with legislation constantly evolving, meaning it is essential to keep on top of any changes and make sure you are implementing any necessary amendments correctly and by the required deadlines. Failure to do so, whether intentional or not, could lead to substantial penalties which could be catastrophic to your business.

    It’s vital to understand in detail any tax liabilities, the employment rights of your employees and other legislation such as Statutory Sick Pay, holiday entitlements and parental leave regulations.

    2/ Automate your payroll

    With technology rapidly advancing, utilising it effectively can save you huge amounts of time compared to manually processing your payroll. Many of the paper-based forms and information have now been replaced by online versions and electronic systems have helped to make data and records far more accurate.

    This can remove large amounts of the administration which was once required when processing payroll and can make it much easier to follow any compliance requirements. There is also a misconception that automated systems are only beneficial to larger companies, but this is not the case, they are used by many smaller businesses who are benefiting greatly from the time saved.

    Many systems are also designed to complement and integrate with existing HR systems which can create further efficiencies, streamlining of processes and an increase in accuracy.

    3/ Audit your payroll

    Regularly reviewing and auditing your payroll processes can be greatly beneficial in uncovering any issues or areas for improvement. Breaking your payroll process down and auditing a selection of records can be a great way to ensure you are avoiding any potential costly errors and correcting matters before they have the potential to develop into a substantial problem.

    It can also be helpful to have an external provider audit your payroll as they may pick up on issues which haven’t been highlighted internally.

    4/ Communication is key

    With payroll being extremely important to your employees, it’s crucial to ensure it is operating in a way which your employees are happy with, that they are clear about how their pay is calculated and know when they will be receiving it. You should also correct any errors promptly, communicate how the errors have occurred and put steps in place to prevent the same mistake happening again.

    Happy employees are key for the performance of any business and demonstrating that you care and clearly communicating any changes to your payroll process, including how this may impact employees, can go a long way to building trust.

    5/ Consider outsourcing your payroll

    Although many businesses successfully manage their payroll in-house and do so effectively, there are a number of reasons you may wish to consider outsourcing your payroll to help improve the overall performance of your business.

    By outsourcing your payroll, you could free up time to focus on your core business, with the reassurance that your employees will be paid accurately and on time. It can also help to minimise any errors and maintain compliance with a team of experts dedicated to keeping on top of the latest legislation and ensuring compliance, along with automated systems to reduce the chance of errors often found with manual data entry. It could improve security by utilising advanced systems which will protect your data from unauthorised access or theft, and also reduce costs by removing the expense of buying and maintaining a costly payroll system.


    Understanding the importance of efficient payroll processes can be vital to the success of your business and is essential to keep employees happy, whilst also avoiding any possible penalties as a result of getting it wrong.

    At PM+M we have an expert payroll team who are working constantly to stay on top of the latest legislation and software to provide the most efficient, accurate and safe payroll service to our clients, allowing them more time to focus on their business and provide the peace of mind that their employees will be paid correctly and on time.

    Get in touch

    If you wish to discuss any of the above matters in further detail, chat through your personal circumstances or would like to explore the possibility of outsourcing your payroll, please get in touch with Julie Mason, director of payroll at PM+M using the button below.

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    For more information about anything in the above article, please get in touch using the button below.
    Julie Mason
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