Payroll Services vs Payroll Software
The world of domestic payroll can be hard to navigate on your own. To help you make the best choice for your household we’ve rounded up some key information about the differences between the Stafftax payroll service and a payroll software provider.
What is Stafftax payroll service?
If you employ someone to work in your home, Stafftax offers valuable support by taking care of your employment responsibilities. This includes setting up and ongoing management of HMRC , sending you weekly or monthly payslips, providing a bespoke contract of employment and giving you unlimited payroll administration support and advice (including Statutory Sick Pay, Statutory Maternity Pay, redundancy and processing a P45 each time an employee joins or leaves).
Unlike software, you don’t need to have any prior knowledge of payroll as our team will process it on your behalf and answer any questions you may have. When you are set-up, you simply need to let us know your employees' rate of pay and hours worked. We'll calculate the rest and produce a payslip for your employee. You just need to report any holiday or sick pay to us to make sure it's reflected on your employee's payslip.
While using a payroll service provider can be more expensive than buying payroll software, it's worth considering how much time you can save by outsourcing these responsibilities. Make sure you weigh up the cost of the service against the time you will save before deciding.
Stafftax offers other valuable support by assisting with your legal duties such as setting up a workplace pension scheme and giving you access to unlimited HR support. Your reporting duties will be taken care of and you will also be notified when any payments to HMRC are due, reducing the risk of incurring fines.
Pros and Cons of using a payroll service
|Saves you valuable time||Can be a higher cost
|Requires no knowledge of payroll ||You will need to communicate any amendments to the provider
|Helps you with all your employment duties
|Reduces chance of errors||-|
How does that compare to payroll software?
The term payroll software refers to a digital application that assists with calculation of an employee's salary, tax, national insurance contributions and other related deductions. Most types of software will allow you to calculate and product payslips for your employees, as well as sending the electronic RTI report (Real Time Information) to HMRC.
There are many different companies offering payroll software, services and products, so it is important to shop around and know what each software includes. For example, some software will allow you to manage both your payroll and pension duties alongside each other, however not all do. You may also find that you need to set some time aside to familiarise yourself with your legal duties and learn how to use the software correctly.
One key feature of payroll software its accessibility, with most providers now offering 'cloud based' software. This means you can access the information from anywhere and you are also able to edit and amend payslips whilst you are on the go. Remember though, if you are processing the payroll yourself, it will be your responsibility to rectify any errors that are made.
Pros and Cons of using payroll software
|Easy to access ||Time consuming
|Managed by you
||Might not include everything you need
|Can be cheaper than using a payroll service ||Can be difficult to navigate|
|-||Higher margin for error|
Remember - Payroll software will only cover your payroll duties; you will still need to make sure you're undertaking your legal duties as an employer.
Having read this article, I'm sure you have an idea as to which option suits you best, if not, don't worry. Deciding which service to choose from comes down to your needs as an employer. Review the pros and cons of each option, making sure you consider key factors such as your time, cost and your own knowledge level of payroll and employment duties.
If you need any further guidance, then you can call or email us and we’ll be happy to answer any questions.
We hope you find your perfect payroll solution.