Payroll is a vital part of any business. After all, if your employees are not paid the right amount, on time, you may not keep them for very long!

Computerised payroll systems have several advantages over doing it manually : it is generally faster, less prone to error, and removes the need to pore over Tax Tables, as all of that information is held within the software, which will do the calculations for you.

A good package will also handle functions like:

• Statutory Sick Pay
• Statutory Maternity Pay
• Attachment of Earnings Orders and the like.

There are several things to be considered when choosing a payroll solution, whether you are converting from one package to another, or implementing your first computerised solution.

What sector(s) of industry do you work in?

Some industries have their own rules about how the payroll must work (construction and recruitment firms being obvious examples), and there is often a choice of specialised packages, with extra functions designed for the specific requirements of the sector. You should still consider "standard" packages, as many of them will have extra add-ons that enable them to handle unusual requirements, or have already been adapted to a particular task. Specialised software is often much more expensive, and is sometimes lacking in basic areas.

Do you need an in-house package, or a bureaux or managed service?

Many firms choose to outsource their payroll function to specialist bureaux. In cases where the administrative element of the company is small, and lacking in time or payroll experience, this can be a cost-effective option

What is your available budget?

Often one of the major decision factors. It can be tempting to go for the lowest cost solution, regardless of how well it suits your needs, or how much benefit it actually brings to the company. Don't just look at the price tag on a package, look at the larger picture too. Spending a little more money on a system that suits the way you work can save hundreds of man-hours of work for your payroll staff. Such an investment will often pay for itself within the first year of operation with the new system.

Would you like to integrate your payroll and personnel systems?

Some packages do more than just calculate pay. They can help you improve the information you have about your employees. Many will help you keep track of employees holiday entitlements, their training record, and disciplinary record. Some packages can even be integrated with time and attendance systems, and generate timesheets (and hence pay) directly from that data.

Would you like to integrate your payroll and accounts systems?

Many accounts software developers also produce payroll software, designed to work closely with their accounts products and introduce even greater time savings, by reducing or eliminating the need to rekey payroll information into your accounts software

Of course, you may not have a computerised accounts package. If not, then maybe you should read our guide to Choosing an Accounts Solution