Expenses
A number of eligible expenses do not attract any PAYE liabilities, therefore, are traditionally are paid outside of the payroll. With payroll software having the option to process net payments, the survey asked if this was still the case, or if this responsibility fell to the payroll department.
It is evident from the results this is still the case, however, 27% of expenses are paid via the payroll. This figure has the potential to rise in the future as more responsibility is given to payroll teams in making payments direct to employees. By processing expenses via the payroll, it reduces the number of additional payments needed. Many systems offer self-service platforms that can link directly to payroll software, thus removing the need for human intervention, reducing input errors and making information readily available. Companies can also have cost savings by processing expenses by payroll as it reduces the number of additional payments that are made. By processing expenses via payroll, it also has the benefit of a clear audit trail and can be included in any reports produced by the payroll team. In addition, those figures can be uploaded to finance systems, reducing the manual intervention and effort to transfer data.
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