How can I give pay slips to my staff?

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There are many way you can give payslips to your staff, so in this article we talk about the different ways and the pros and cons of “How I can give pay slips to my staff!”

Whenever payroll is run (whether it ‘s weekly or monthly, etc) the payroll software will be able to prepare a pay slip for every employee.

Every employee needs a pay slip so that they can clearly see how much they are being paid and why – i.e the Tax and National insurance paid and any other deductions and the net amount.

Years ago, employers would give each employee an envelope containing their pay slip and net pay on payday. However now, payments are usually made directly into the bank and payslips are separate.

Thanks to technology, employers have other options for distributing the pay slips to the team.

So that you choose the right option for you, this article summarizes what the main options are, and for each, what the main advantages and disadvantages are.

Option 1: Physical distribution

This option means that the employer physically prints off each pay slip and hands them out to each employee on payday.

Advantages

‘Traditional’ method – some employees are used to this and prefer it, especially if they don’t have access to technology or like technology
Quite straightforward – especially if there are just a few employees – it means the intended person receives it and no worries around GDPR

Disadvantages

Time consuming to print & distribute – especially for employers with large employee numbers and/or have employees working off-site
Time consuming & hassle if you need to reprint
Additional cost – for printing the pay slips & printing on paper could be seen by some as not being environmentally friendly

Option 2: Email

This option means that the employer emails a PDF copy of the pay slip to each employee on payday.

Advantages

More convenient & saves time (compared to option 1) – it’s quicker to send pay slips by email, rather than to print & manually give them out
Less cost – no print costs

Disadvantages

Security risk – sending emails means there’s a risk of it either being hacked or being sent to the wrong email address

Option 3: Employee Self-service Portal

This option means that each employee has their own folder on a secure portal, which only they can access. This means they can access their folder whenever they want to see the latest pay slip, as well as any other pay slips from earlier months, or other documents like a P60.

Advantages

Saves time – no need to send anything out, as employees log into the secure portal whenever they want to get a copy of any of their pay slips or other payroll info
Security – the payroll documents saved in the portal are very secure, as the portal can only be accessed with a unique PIN number

Disadvantages

Internet Access – employees need to have this to log into the portal
Training – Both the employer and employees usually need some training initially so that they can access the portal
Portal Cost – Most secure portals come with a monthly subscription

IN SUMMARY

Every employer has several options to choose from when it comes to distributing pay slips to their employees.

Technology means that there are now a couple of alternatives, to the ‘traditional’ way of manually printing & giving out pay slips.

If you’d like a chat to see how we can help with this or anything else, drop us an email to [email protected] or call one of the team on 0161 410 0020.

Disclaimer

You must take professional advice before making any decisions based on the information that you have learnt here. While every effort has been made, to make sure it is accurate it cannot be precisely tailored to your personal circumstances. This article is for general information only and no action should be taken, or refrained from, as a result of this information. Professional advice should be taken based on specific circumstances in each individual case. Whilst we endeavour to ensure that the information contained in the article is correct, no liability will be accepted by Krystal Clear Accounting which is a trading name of Kim Marlor Associates Ltd or damages of any kind arising from the contents of this communication, or for any action, inaction or decision taken as a result of using any such information.

What are Bank Feeds and how do they work?

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In short, bank feeds create a digital link between your business bank account and your accounting software, such as Xero or QuickBooks.

This means bank transactions are automatically downloaded into the accounting software. This simple piece of automation, completely removes the need to manually input every bank receipt and payment into the accounting software.

Having bank feeds in place, saves a HUGE amount of time bookkeeping. That’s because it completely removes the need to manually input bank transactions into the accounting software.

Saving time bookkeeping isn’t the only benefit for the business….

What are the main benefits to a business using bank feeds?

Bank feeds automate, what was previously, a time-consuming task of entering all the bank transactions into the accounting software.

This saves the business a HUGE amount of time (& money) spent on bookkeeping.

With bank transactions being downloaded from the bank every day, it means it’s quicker and easier to keep the bank balance in the accounting software up-to date.

With the accounting software up-to date, the bank is updated daily which gives you a clearer, real-time view of your business’s cash flow.

This makes it easier for you to plan your cashflow, and take action to improve it.

There is always the risk of errors being made when data is being manually inputted into the accounting system. It is often time-consuming to find and correct any errors. Also, if an error is large then the Profit & loss and Balance Sheet reports will be inaccurate and potentially misleading.

Automating the bank transaction entry previously manual process, reduces the risk of errors being made and ensures that the bookkeeping records and reports are accurate.

How to Link Your Bank to Xero

Ensure that your bank account is set up for online banking. This feature is typically available from all major banks.

Log into your Xero account and navigate to the banking section. Select ‘Add Bank Account’ and follow the prompts to search for your bank.

After adding your bank account details, you’ll see an option to set up bank feeds. Click ‘Agree’ to the terms, then securely log into your online banking portal through Xero to authorize the connection.

Are Bank Feeds Safe & Secure?

Yes.

Firstly, having bank feeds in place ONLY means bank transactions are downloaded into the accounting system. They do NOT give anyone else access to the business bank account.

Secondly, XERO has various security measures in place to give you a piece of mind that your financial data is safe and secure:

Encrypted Connections: Xero uses advanced encryption technology to secure the data transmission from your bank to Xero. This means your sensitive information is encrypted during transit and cannot be intercepted or read by unauthorized parties.

Compliance and Standards: Xero adheres to high standards of data security compliance, thus ensuring that its practices meet or exceed industry security standards and regulations.

Regular Renewals: To maintain a high level of security, XERO requires that the bank feed connection is renewed every 90 days. This process is straightforward and helps ensure that the integrity of your financial data is always protected.

In Summary

In short, having bank feeds really saves businesses time and money on their bookkeeping.

They automate and eliminate what is otherwise a time consuming and error prone manual process.

Bank feeds is just one of the ways technology can be used to help business owners improve the financial side of their business.

How can I give pay slips to my staff?