NEW Articles13 Dec 2024
The consequences of higher employer’s national insurance contributions
The impact of the Budget’s increases in national insurance contributions (NICs) are not limited to employers.
Case Studies
A rapidly expanding business with 350 employees was continuing to use a manual processing system
A rapidly expanding business with 350 employees was continuing to use a manual processing system. This system became increasingly inefficient and error prone. Payroll administration was taking an inordinate amount of time and employees were becoming increasingly unhappy.
It was taking longer to manually populate a spreadsheet and enter data for employee’s payroll than it was to process the actual payroll. Very little time was being spent on compliance and checking that employees received the correct pay. This meant time was spent on dealing with employee queries and there were delays in responding to questions, which in turn lead to employee dissatisfaction. Payslips were printed and handed out to employees which again resulted in delays.
The business was growing, but if this situation continued it risked losing some of it’s workforce. The management realised that something needed to change, and the business needed a robust, accurate and timely payroll system in place.
Alliotts were asked to conduct a full, in-depth review of the businesses processes. Our review highlighted the inefficiencies as well as the fact the employees were not clocking in and out as required. We helped with the enforcement of the clocking in and out system, which recorded the exact hours worked.
A cutoff date was introduced to submit any other payments including expenses and bonuses.
Each deadline day, the system generated a report which was mapped to our payroll software. This enabled data to be directly downloaded to the payroll system. We also introduced electronic payslips, which meant employees received their payslips in a secure electronic method, on time, every time.
The error rate on pay reduced significantly, this which resulted in a happier work force and less time staff time taken up dealing with frustrating payroll queries.
Outsourcing their payroll function to us allowed the owner managers to focus on growing running the business while we looked after all aspects of payroll processing and compliance.
THE AUTHOR
Senior Manager, Payroll
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