Creating a payroll system

[Ella Business]

Hi Everyone,

Does anyone know what the rules are to have a payroll software that is HMRC Compliant?

ie: ie needs to deduct tax, ni etc.

Have anyone ever created a payroll software or have any more in depth information on it?

Thank you in advance.

 

[Scalloway]

PAYE Online support for software developers

https://www.gov.uk/government/collections/paye-online-support-for-software-developers

 

[mattk]

I've never created a payroll system, but I did have a discussion with a client once whose opening gambit was "how hard would it be to create a payroll system?"

The short answer is very hard.

You mention tax, which is probably the least of your worries, as they announce the changes well ahead of schedule (apart of Scotland who are very tardy).

More complex is the myriad of other legislative and regulatory rules will also have to handled such as sick pay, maternity, paternity, shared parental leave, auto-pension enrolment etc.

On top of that you will be handling large amounts of personal data and need some way for those you are paying to access their payslips and benefits information.

In reality, I don't know why anyone would want to try and enter a very crowded market which is dominated by billion dollar companies like SAP, Oracle, ADP etc.

If you are thinking about offering a payroll service, then there are plenty of white label payroll providers which you can use if you have a niche.

 

[Paul Norman]

To build a system that equals the systems already out there is going to take a lot of development time. And then, it will be just another system, competing with many existing ones, but without the household names attached to them.

If a client asked us to do this, we would almost certainly decline - it would be unlikely to be the best option for them.