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How Schools can Manage their Payroll Systems

Jun 13, 2018 by

In nominal terms, the average spend per pupil in UK schools increased between 2016 and 2017. The amount rose to £4,432 during this period, despite a raft of public spending cutbacks across the board.

This is good news for the education sector, with schools facing a number of challenges in the current economic climate.

One such challenge is the successful creation and management of a payroll system, which ensures that all workers are paid accurately and on time. In this post, we’ll look at the key steps that will help you to achieve this:

  1. Start with the Basics

To begin with, you’ll need to ensure that you select the right software and service provider to suit your needs.

This represents a delicate balancing act; as while you’ll need to invest in software that delivers the most value and a viable return on your investment, it’s also imperative that you do not end up paying for an expensive service that includes a number of redundant features.

When selecting a viable piece of software for your school, it’s crucial that you prioritise systems that adequately track overtimes payments. This can be a significant issue in schools, so tracking such payments can save considerable amounts of time and administrative effort going forward.

  1. Choose Between Local Authorities and Payroll Providers

When it comes to identifying your payroll partners, much will depend on the budget at your disposal and emphasis that you place on effective payroll.

While academies and free schools may be required to buy into the local authority payroll through a service-level agreement, private or better-resourced entities are more likely to consider working with a private payroll providers.

These firms will allow schools access to both cutting-edge software and industry expertise, while also offering bespoke packages to suit specific circumstances. This type of service can also deliver exceptional value for money, managing up to 500,000 payslips seamlessly on a recurring, monthly basis.

  1. Check and Maintain your System Over time

Regardless of the path that you choose when selecting a payroll system, it’s important that you continue to test and validate the software during its initial usage.

So, once you’ve set-up fixed payments for each employee, while also scheduling pension contributions and inputting monthly national insurance details, you’ll need to perform a number of mini-internal audits to ensure that everything is running smoothly.

These audits should highlight any potential issues in advance, while they’ll also deliver peace of mind that your system is fit for purpose. Also, don’t forget to set up a system for tracking overtime payments at this stage, as this will help you to get the most from your software and achieve a desired ROI.

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