Online Payslips – A Feature from FMP Payrite Payroll Software
Online Payslips is a feature from FMP Payrite comprehensive payroll software that will effectively minimise the amount of time involved in distributing staff payslips and substantially reduce the associated costs, without the financial commitment of a full self-service ERP system.
What are online payslips?
An online payslip is essentially an electronic version of the usual printed or paper payslip that an employee receives. Online payslips are available to access securely online from a company intranet or an employee self service facility. The term ePayslip is also commonly used to refer to electronic payslips; however these are slightly different to online payslips. EPayslips are instead emailed directly to an employee.
Once implemented by an organisation, online payslips will typically replace the traditional printed or paper type payslip that would have been produced. Current and historical versions of online payslips are usually available to access and if necessary print.
The technology infrastructure and software that enables organisations to implement self-service has been around for more than a decade, with most HR and Payroll software providers offering a self-service module or facility that can be integrated with a HR and/or payroll system. But despite the efficiency improvements and cost-saving benefits making it a no-brainer, organisations have been slower to implement online payslips than might be expected.
Why are some businesses hesitant about switching to online?
When it comes to online payslips, there still seems to be a slight air of distrust amongst workforces. For instance, in businesses where there are less computers and employees are less comfortable with using technology, the online payslip may come up against some opposition. They will probably be less trusting of the system than those who are more computer literate and familiar with using one as part of their day-to-day job.
In essence, some employees need to get used to viewing their payslip online as opposed to receiving it in an envelope every week or month.
What are the benefits of using online payslips?
Online payslips are very simple to implement and are often a bolt-on to pre-existing HR and Payroll technology. From a web browser, the employee can access both current and historical payslips online at work or at home 24/7. This is particularly useful for example in fulfilling requests from a bank to provide back issues of payslips in support of a mortgage or loan application. The employee can provide copies of payslips without having to consult their payroll department.When online payslips are implemented, employees will have instant 24 hour access to their latest payslip.
Online payslips can significantly reduce the cost of providing payslips, particularly in a large or multi-site organisation. Printed payslips and specialised sealing machines no longer need to be purchased and postage costs (if applicable) are completely eradicated. This is both more environmentally-friendly and time efficient for the payroll department.
Online payslips can also provide the employer with the additional opportunity to provide information over and above that which is usually included on the printed payslip, e.g. details of benefits which the employee receives and their perceived value, bonuses or perhaps information relating to their expense claims.
Your payroll managers have the flexibility to choose which documentation is available for your staff to view. This can be limited to just payslip data or you can include other important information such as P60s.
We recommend that staff should still have the option of a being given a hard copy payslip if circumstances change or they do not have internet access.
What type of company will benefit from implementing online payslips?
Whilst many companies stand to benefit by implementing online payslips, large and/or multi-site organisations probably stand to benefit the most from increased efficiency and reduced costs. It is also worth noting that the type of industry that the company operates in could be significant in terms of how the introduction of online payslips could be perceived by its employees. Companies that have large numbers of IT/PC literate employees will be more readily available to accept the move from the traditional paper based payslips to an online version, than those organisations who employee predominantly manufacturing or manual labour.
How are Online Payslips made available to staff?
The portal can be configured to automatically generate an email notifying employees that their pay advice is ready to view when the pay run is complete and the payslip file has been uploaded to the secure site. This email alert does not include a live URL link.
What is the login process for users accessing their online payslips?
By collecting employee contact details including name, telephone number and company email address from you on implementation we will create an email login for each employee at which point they will receive a system generated password. When they login for the first time they will be instructed to change their password to something memorable. There are also a series of security questions that can be set up by the employee.
How long are online payslips records kept for in the secure portal?
This is agreed at implementation stage and can be anything from a few months to years.
How do we sync new employees with Online Payslips?
Payrite Online Payslips is controlled by the payroll data entered onto the system. Payroll Managers just need to process a new starter’s payroll and add the employee’s company email address. Then when this is uploaded to the portal an email notification will be sent alerting the employee that their payslip is ready to view. If no email address is added then a new starter will not receive the email notification but their data will be stored on the system.
How long would employees that have left the company still be able to access their data for?
This is agreed at implementation stage and it can be tailored to suit your company needs.
Do we still have the option of printing payslips?
Employees that still wish to receive a paper payslip can request this via your Payroll Department. Payroll Administrators will have the option to authorise printed and/or online payslips for all staff. It is particularly useful for payslips to continue to be printed during staff maternity leave or long term sickness.
Is it legal to provide staff with payslips online?
Under Section 8 of the Employment Rights Act 1996, employers must provide an ‘itemised pay statement’ and it must be ‘given’ to the employee by the employer. This must be done ‘at or before’ the time the payment is made, and must be ‘written’. Our Online Payslips solution fully adheres to these rules.
Can I legally provide staff P60s online?
Yes. In April 2010 HMRC guidance changed to give employers the option of issuing online P60s to their employees.
Considering implementing online payslips?
If you are considering online payslips just take time to think about:
- What do you want to offer your employees?
- Will it be accepted by our employees, what is our business culture?
- Where will you host the service and is it secure?
- What are the benefits to our business?
- When will you implement it and do you have an implementation strategy?