3 solutions for payroll management
This article was updated in October 2018.
Managing payroll for the human resources manager can quickly become a headache. It's not just a question of drawing up the document, it's also a question of making the calculations beforehand in compliance with the legislation, then declaring and paying the corresponding charges. All the more so since the simplified payslip is compulsory for all small and large companies, SMEs, SMIs, and has been since 1 January 2018. You can choose between 2 options for managing your payroll: in-house or outsourced. But have you thought about using online payroll software to meet all your payroll obligations with certainty?
Let's take a look at how IT tools can simplify the monthly production of pay slips in line with new legislation, and facilitate transfers to employees' bank accounts:
Solution 1: In-house payroll management
With this type of management, you have the in-house skills to carry out your payrolls and all the activities associated with this activity: preparation, social and tax monitoring, calculation and checking of pay slips, social security returns, etc.
Benefits
One of the advantages of having the software installed on your computer is that you are guaranteed to have a permanently accessible database.
You can do what you want without having to wait for an e-mail from your service provider. When an employee comes to see you because they've lost their pay slip for June 2013, you'll be able to print out their pay slip again on your own.
You'll also be able to do your own data extractions, produce certificates, etc.
Disadvantages
Depending on the number of staff in your company and your business, it's highly likely that the person who does the payroll won't be doing just that. They have other tasks, even part-time.
So when we calculate the cost of this activity on the pay slip, we don't count a full-time person. What's more, when calculating these costs, you need to remember to add the fixed cost of using and configuring the software!
And don't be fooled by current legislation: pay remains a leitmotif for most employees! A legal watch is necessary (especially the day after a sunny bank holiday!) to ensure that everything is correct on paper.
It's a time-consuming task, but one that can't be avoided unless you call in an outside legal firm.
Solution 2: Outsource your payroll
No more worries with outsourced payroll: you write a cheque at the end of the month and all the payslips are drawn up for you! This is an alternative with its own advantages and disadvantages, just like those presented above.
Advantages
You will be dependent on an accountancy firm or a company specialising in payroll management. It's a simple solution because you have almost nothing to do: just send the data every month with information on the presence and absence of employees.
This means that you no longer need competent staff for this activity. The service provider manages everything: legal, payment, charges... and everything has to be right!
If there is ever a delay in payment or a fine, all you have to do is turn to your "expert".
Disadvantages
Up to now, this solution has only been a thorn in your side, and yet... You lose autonomy over your employee data.
Access to your employees' information is no longer possible, so no more extractions and no more checks... You're trusting this dossier with your eyes closed! As for the cost per form, the savings may be relative.
In fact, in this context, the cost per pay slip will be impacted by all the round trips and changes made to production: incoming employees, documents for outgoing employees, changes in status, social security declarations, etc.
Solution 3: Manage your payroll with online software
Online payroll, also known as ASP (Application Service Provider), is a mix of in-house and fully outsourced management. The biggest advantage is that you don't have to pay to install the application. It's simply a subscription with, as with all payroll management, a cost per pay slip.
All advantages
In practice, this is the most popular payroll management solution for VSEs and SMEs. It appears simple and inexpensive, with a fairly low cost per pay slip.
Online software also offers a range of associated services, including the declaration of social security contributions, legal updates, settings and advice.
There are no surprises from one month to the next! Within the company, the burden of payroll management is lightened. All that remains to be done is data entry and distribution of pay slips.
The burden of responsibility for payroll accuracy is shared with the online solution. So you, as a company director, can rest easy! Well... for this Human Resources dossier on payroll at least!
Of course, the database is online with all your employees' information: in the wonderful world of the Cloud! All you need is a good internet connection.
The data is stored and hosted by the service provider. And the database, as with in-house management, is available for viewing and retrieval at any time.
Which payroll software should you choose?
It's all about choosing the right tool for your needs. Before you decide on one payroll management software package rather than another, it's a good idea to consider your in-house skills and your willingness to spend time on this activity.
Other important points to consider are the size of your workforce and the specific features of your business. Regardless of the size of your workforce, payroll management can be simple or become complicated for specific areas of your business (shift work with associated bonuses, complicated calculations for bonuses or absences, etc.).
Your choice should be guided by a solution that simplifies your payroll management as much as possible.
Payroll software
We steer HR managers towards some of the most effective HR solutions on the market: discover payroll software that provides rigorous support for the HR function on a day-to-day basis.
PayFit: the choice of SME payroll departments
Payroll managers who use PayFit are in the best position to talk about it. Find out what they have to say in the following video:
The administrative manager sets up PayFit upstream to simplify payroll processing and reap several notable benefits:
- the solution incorporates the constraints associated with the new law in force since 1 January 2018,
- pay slips are issued automatically and sent by email to each employee,
- the software automatically calculates social security contributions and employer contributions,
- employees have access to a personal online space where they can enter their own expense claims and holiday requests, download their pay slips or change their personal details, etc.
Payfit greatly simplifies administrative management: remote payment and social security declarations to URSSAF, DSN, DPAE, pension and provident funds, etc.
Companies that use PayFit: Konbini, Station F, Le Slip Français, Pumpkin, Alan, Heetch, La Belle Vie, Lunette Pour Tous, etc.
Price: on request. Please note: PayFit also publishes an HRIS tool for optimising working time management and other strategic areas linked to the responsibilities of a HR director...
Fiche-paie.net: the ideal payroll solution for VSEs and SMEs
Fiche-paie.net promises to help small and medium-sized businesses and start-ups produce their payslips in just 2 minutes. Video demonstration of the software:
Fiche-Paie.net simplifies the administrative management of payroll, in particular through :
- producing legal documents that comply with the legislation in force on 1 January 2018,
- managing the Nominative Social Declaration,
- calculations performed by the solution,
- management of packed lunches, overtime, etc,
- automatic generation of payslips,
- 1,000 integrated collective bargaining agreements.
Fiche-paie.net is aimed at entrepreneurs who want to optimise costs and save time managing their payroll independently: rates are adapted according to the number of monthly payslips.
Companies that use Fiche-paie.net: AlloMarcel, OPTIMARK, Autobacs, Monde Connecté, Mambo Pizza, DIMIDOM, etc. Very affordable price for very small businesses: from €7.90 excluding VAT. That's a small price to pay to keep payroll managers happy...
Simplified personnel administration
While online payroll software eliminates calculation errors and increases productivity, this type of solution has become a competitive factor for human resources managers.
It allows them to focus more energy and time on more strategic issues such as career management or training management.
Small business managers are not left out either: by using online payroll software, they save precious time that they too can put to good use, such as devoting themselves to winning new customers...
Article translated from French