Electronic Medical Billing Software and Service Compliance With Pre-Payment And Post-Payment Audits

Mistaken payments add up to an estimated $200 billion, exceeding 10% of national healthcare costs. Other Party Liability (OPL) alone, i.e., claims that should be paid by somebody else, make up $68 billion or 3.6% of national healthcare cost. The enormous size of potential savings due to improved claims processing continues to attract attention and resource focus. Insurance profitability experts believe that a payment scrutiny program can be as successful a profit-building strategy for insurance companies as raising premiums or adding members. A growing industry of outsourced technology and services to avoid mistaken payments is also symptomatic of a growing demand for such services. Some vendors cite cumulative payment savings as high as $3 billion.

However, avoiding mistaken payments is hard because of four-pronged constraints, namely, the volume of claims, the disparate and disconnected sources of relevant information, the resource-intensive manual processes needed to identify and investigate recovery opportunities, and regulatory requirements for timely payments.

To manage these difficulties, many payers adopted a two-phase-based "pay-and-refund" approach for payment minimization. The second phase of this approach is designed to correct any mistakes made during the first phase. Each of the phases can be further divided into two stages. Specifically, the initial phase splits into prepayment review and timely payment of valid items, while the final phase includes post-payment audits and refunds of items proven invalid during the audit.

Prepayment Review

Prepayment review typically proceeds in two stages, identification and confirmation. Potential overpayment identification requires cross-referencing multiple systems that manage provider enrollment, authorizations, recovery case management, and call centers for both insured and providers.

Overpayment confirmation uses Correct Coding Initiative (CCI), Local Medical Review Policies (LMRP), and other rules to categorize the potential overpayments into Contractual/Clinical, Eligibility, Coordination of Benefits, or Duplicate Payments.

Overpayment confirmation typically includes tests for inter-claim, intra-claim, or cross claim inconsistencies, lifetime duplicates, date range duplicates, re-bundling, inappropriate modifier codes, wrong E&M crosswalk, upcoded or undercoded visit level, etc.

Prepayment review requires powerful database technology. Most of prepayment claim review process can be automated along with subsequent denial notice or explanation of benefits (EOB).

Post-Payment Audit

In contrast, post-payment audits tend to consume more resources during each one of the audit stages:


Target identification

Audit identification report shows total annual revenue and the degree of variance between the audit target and peers in the same specialty and geography. The product of the two numbers is proportional to the expected gain from the audit, essentially providing a natural audit ranking.


Audit preparation

A higher return to the payer is the key advantage of a carefully designed and executed post-payment audit. Audit preparation starts with a review of audit target selection, which is the result of provider profiling and variance reporting. This stage includes a list of claims paid in the past that are most likely to fall outside of standard distribution of the peer group.


Audit execution

The auditor requests and analyzes medical notes supporting the data reflected in the sample of paid claims produced at the audit preparation stage. The auditor's objective is to establish the proportion of claims found unsupported by reviewed medical notes within the set of audited sample (percent of overpayment).


Refund (and penalty) extrapolation

The auditor extrapolates refund as the product of percent of overpayment and the total payments by the auditing insurance carrier for the past six years.


Negotiation


Settlement

Some stages, such as audit execution, negotiation, and settlement must be entirely manual, and may require highly skilled and experienced personnel. Other stages, such as verification of overpayment amount and currency, identification of overpayment reason, and audit prioritization, may be partially automated, using rule-based technology to identify procedure repetition, high payments per day, surge analysis, unusual modifiers, unusual procedure rates, geographic improbabilities, or 5/50 patterns. External resources might be added at this stage to consult provider watch lists, OIG sanctions databases, or high-risk address databases.

Summary

A full-scale implementation of payment scrutiny requires sophisticated processes to handle prepayment claim review and post-payment audits and uses advanced fraud detection technology. Prepayment claim reviews are less expensive than post-payment audits and therefore can be applied to every claim, while post-payment audits must be carefully targeted. A system to manage overpayment recovery process must include claim identification, its history, provider and insured information, medical notes, insured services call center notes, authorizations, etc. Without the ability to efficiently manage a large volume of recovery cases, the risk for errors or missed payment deadlines is high, resulting in missed recovery opportunities.

Yuval Lirov, PhD, author of "Practicing Profitability - Network Effect for Revenue Cycle Control in Healthcare Clinic and Chiropractic Office: Scheduling, SOAP Notes, Care Plans, Coding, Billing, Collections, and Audit Risk" (Affinity Billing) and "Mission Critical Systems Management" (Prentice Hall), inventor of patents in Artificial Intelligence and Computer Security, and CEO of Vericle.net - Distributed Billing and Practice Management Technologies. Yuval invites you to register to the next webinar on audit risk at BillingPrecision.com

Benefits of Outsourcing Payroll Against Payroll Software

The essentials element of payroll administration in the UK is to accurately calculate the income tax and national insurance contributions deducted from the employee each pay period, produce payslips for each employee and account to the tax office for the payroll deductions.

Running a payroll system is natural for medium and large companies who may employ specialist payroll staff to perform these functions. Many medium companies may still choose to outsource the payroll function leaving many of the technical issues that might be encountered to a specialist payroll service.

Small businesses may choose to outsource the payroll function because they are not familiar with the paye system although HMRC do run seminars to assist employers. The payroll system not only calculates the tax and national insurance deductions but also has to deal with tax code changes, new employees and changes to existing employees plus taxable benefits and allowances such as statutory payments for sickness and maternity leave, contracting out of the state pension scheme and student loans.

The main benefit of manually producing the employee payroll is the reduced cost although the time spent on the payroll function by the proprietor may be better spent running the business. The cost may not be the cheapest option if an employee is required to produce the payroll. Purchasing payroll software can save significant time and costs for the small business that chooses to prepare and control its own payroll function. Although time is more important as the payroll production cost is not usually a big issue.

Outsourcing payroll adds a small additional cost to running the business but would normally carry worthwhile benefits in reducing the time spent on the function and reduces the paye administrative burden.

Main benefits outsourcing the payroll function.

1. Frees up time in calculating the payroll deductions and dealing with different and sometimes complex employee circumstances.

2. Using a professional outsourcing service to advise on potential payroll problems and difficulties.

3. The cost of outsourcing payroll should be compared against the cost of employing specialist in house payroll staff.

4. Payroll services use payroll software and are more likely to produce accurate tax and national insurance deductions and pay records reducing the prospect of problems with the tax authorities.

5. Payroll administration such as preparing the tax deductions schedules, dealing with starters and leavers, year end certificates for employees and the employer annual returns are normally all automated as part of the payroll service

6. The outsourced service company should also be responsible for producing employee payslips, advising tax and deductions liability and in larger businesses also provide a payroll analysis for accounting purposes.

Alternatives to outsourcing payroll functions.

Finding a suitable outsourced payroll service is not difficult. Local telephone directories or searching the internet would produce many potential payroll service providers.

Many accountancy firms offer payroll services to their clients and although the prices may struggle to be competitive price is always negotiable. Using the business accountant for the payroll has advantages since a substantial cost area for most businesses is already known to the accountant since they prepare the numbers.

Choosing payroll software.

The major alternative to outsourcing the payroll is for the business to acquire and use payroll software.

Larger companies require payroll software that has incorporated within it all the potential pay scenarios and also be capable of dealing with high numbers of employees. Large comprehensive packages can be complex to operate and require specialist wages staff.

Small business may choose simpler less complex payroll software packages that meet the basic needs of the business. It is important the person running the payroll within the wages function understands the payroll essentials and legal payroll administration requirements.

The advantages of choosing payroll software is basically the cost should save the business money against outsourcing the payroll, should retain control over the function and liabilities and ideally should take no more time that supplying employee details and gross wages to the payroll service.

If the business chooses to adopt a payroll software package then the complexity of the package should be considered and also the attributes and capabilities of the chosen software to produce all the payroll requirements in relation to pay and wage deductions, paye administration and employee payslips.

Terry Cartwright is a qualified accountant in the UK producing Accounting Software and Payroll Software packages for self employed and small limited companies. The payroll spreadsheets are suitable for up to 20 employees, produce the tax and insurance deductions, automate payslips and provide the employer with a full automated paye administration system

Choosing Essential Small Business Payroll Software

Large organizations have full time accounting staff to prepare the payroll. Full time professionals employed or the payroll function may be outsourced to a payroll bureau. The payroll task in a small business often falls to the proprietor demanding even more time to familiarize with current payroll legislation and a not insignificant amount of administration time that could be better spent making profits than number crunching. Small business organizations with up to ten employees producing the weekly payroll can easily take an hour or more each week calculating the income tax and national insurance contributions . An hour that could be better spent earning profits or at the very least having an extra hour of free time each week. Free time that small business owner's value at a premium since the majority of small business owners either work or think about work from dawn to dusk 7 days a week. Payroll software to satisfy the PAYE requirements can be just one part of making that small business more efficient.

Small businesses that fail to operate a sound payroll system can produce a negative effect on the employees. Employees expect to be paid and provided the amount is a competitive rate would only rarely have an effect on staff relations. However operating a payroll system that does not provide each employee with a payslip is like telling your employee he has received a personal letter that was opened for him and discarded as not important. To the employee a payslip is very important. Every employer has a legal responsibility to provide employees with payslips and a P60 End of Year Employees Certificate. A payroll software solution satisfies employee's essential needs and fulfills the legal requirements. Failure to provide employees with payslips can only reduce the respect hat employee has for his employer. Every employee must receive a payslip that shows the amount of income tax and national insurance deducted from the gross pay. Employers must also calculate the employer's national insurance contribution. Employers not using a payroll software package such as available from DIY Accounting Payroll Software must design their own payslip to give to employees to satisfy legal requirements.

In the UK producing a weekly or monthly payroll can be a burdensome task to comply with the HMCE requirements. Employers operating a PAYE system without the use of payroll software need to be familiar with evolving requirements of HMCE through their website and the extensive payroll notes contained on the CD-Rom which is sent out annually. To fully appreciate all the technicalities and complete all the correct documents such as the P11 Deductions Working sheet is time consuming. It doesn't have to be a problem. Payroll Software can automate this knowledge and functions and is available at insignificant cost. DIY Accounting Payroll Software package is available for up to 20 employees at a cost of £15 to £25. That is a payroll software package that could save a small business over an hour a week, for twenty employees more like two hours, for less than 50p per week. All small business owners should at least consider suitable efficient payroll software.

Many payroll software packages are written using databases and can put many small business owners off using them due to both the cost and the fear of the unknown complexity of using such a payroll package. Many payroll software packages written on a database provide an excellent solution but have a tendency to be extremely politically correct and cover all potential rules and regulations and consequently become more complex to operate as they can demand at least a minimum knowledge of the payroll system. There are other PAYE solutions. The DIY Accounting Payroll Software is written on excel spreadsheets requiring no payroll experience and a minimum of entries to produce all the essential calculations of income tax and employees and employers national insurance. In addition excel copies of the time consuming P11 Deductions working sheet, P60 Employees Certificate and the P35 Annual Employers Return are all automated to save the small business valuable administration time. A payroll software solution written on excel can also be used with an open office spreadsheet package but not least all the entries are visible and therefore transparent. Errors and mistakes can be easily corrected simply by changing the numbers on the payroll ensuring the payroll is produced both quickly and accurately. Payroll Software is an effective tool that should receive serious consideration by all small business proprietors.

Payroll Software also has the advantage because it can be simple and fast to use of avoiding late payments to the revenue and the consequent unwanted letters and potential fines this can invoke. By having all the information required for the monthly or quarterly revenue payments late penalties can be avoided and by producing the Annual Employers return on time small business owners can submit their returns online and receive a tax free online filing bonus. The current online foiling bonus being £150 and substantially more than the payroll software might have cost. And it's Tax Free. As they say in Yorkshire. "If thar you ever gets owt for nowt, Tec it"

Terry Cartwright is a qualified accountant in the UK designing accounting and payroll software packages for small to medium sized business through his website DIY Accounting, Payroll specifically produced for up to 20 employees providing simple Payroll Software written on excel spreadsheets.

How Payroll Software Can Reduce The Paye Administration Burden

If you are an employee your employer has a legal responsibility to operate a paye scheme and provide the employee with regular payslips a P60 end of year certificate and a P45 showing details of gross pay and income tax deducted during the employment if you leave.

An employer needs a paye system that satisfies both these payroll requirements and the additional paye records required by the Inland Revenue.

Calculating an employee gross pay is not difficult for most employers as the rates and hours are usually preset or subject to known information such as a timesheet for example. Calculating the income tax and national insurance can present problems to employers inexperienced in payroll matters who are not familiar with the revenue requirements. Payroll software can automate this part of the paye administration reducing both the time and knowledge required.

When an employee joins a new business they must provide the new employer with a P45 which contains specific essential information that employer needs. The P45 contains details of the employee name and address, previous earnings and the amount of income deducted by the previous employer. The P45 also states the employee tax code and any special conditions that may have been in force such as being deducted tax on a week one or month one basis.

These details on the P45 are necessary as the new employer needs to initially set up a set off paye records for each employee which can be obtained from the P45. Rather than filing the P45 under a pile of papers or the back of a drawer a payroll software solution adds discipline to this process and permits a permanent record to be kept which can prevent serious paye deficiencies inb the future.

Documents and notes on scraps of paper can get lost while employee details kept on a proper package rarely do and can be backed up as required.

The P45 does not contain details of national insurance contributions as the new employer does not need to know what the previous national contributions were. This is because national insurance contributions are always calculated on a week by week or month by month basis and so previous deductions are not relevant while previous details of income tax deducted are relevant because income tax is deducted on a cumulative basis.

Having established the employee records the main work of the paye system begins. Each pay period the employer needs to calculate the income tax and national insurance to be deducted. This can be done manually or the employer can laboriously enter the employee and previous pay details into a paye calculator to obtain the information. This is a better choice as these paye functions are automated by that payroll software.

The employer is required to keep accurate records of the breakdown of the calculation which are recorded on a P11 deductions working paper. This part of the paye administration is a burden for many small employers and payroll software can automate this task saving hours of work during the year.

Next the payslip which is highly important to employees and the employer has a legal responsibility to provide one. Designing a payslip and ensuring it meets all legal requirements is much easier if a standard legally correct format is adopted as part of an automated payroll software system rather than manually preparing the payslip each period.

When an employee leaves they must be given a P45 to take to their next employer and the paye system adopted must provide the information to complete the P45 accurately. It is a foregone conclusion that using it to generate this information can ease the administrative burden and provide accurate information satisfying the legal requirements of the paye system.

At the end of the financial year the paye administrative burden is increased if manual records are kept as the employer needs to produce a P14 showing the employee deductions and provide each employee with a P60 certificate showing the employee gross pay and deductions. Payroll software can automatically generate the gross pay totals and the income tax and national insurance contributions providing the information required.

The payroll records must also produce the information for the P35 annual employer return showing the income tax and national insurance deducted from each employee and if an employer is operating a manual payroll system then this task is often put aside and can lead to returns a filed late and incurring late filing penalties. With a solution the information is available immediately the final pay period has passed and the figures can easily be submitted online not only saving late penalty fines but also gaining a tax free online bonus.

Using payroll software can not only save time and reduce the paye administration burden but save the employer money too.

Terry Cartwright, qualified accountant in UK designs Payroll systems providing Paye solutions for small to medium sized business with Payroll Software written on excel spreadsheets for up to 20 employees.

Product Review - UK Paye And Payroll Software

DIY Accounting Payroll Software is written on a series of excel spreadsheet templates.

Small business payroll solution available in the UK for up to 5 employees, up to 10 employees and a third version of the payroll for up to 20 employees.

The basic details of each employee are entered on an Employee Details worksheet including personal details such as name, address, starting date, income tax code and national insurance details. Details which every employer needs to maintain anyway to satisfy the requirements of operating a paye scheme. The payroll software then uses the pay data entered such as income tax code and dates and national insurance dates to calculate the income tax deductions and national insurance contributions of both employee and employer. Once the employee details have been entered running a paye system couldn't be easier.

The payroll software pre-enters each employee's name on the payroll each week or month and simply entering the employee gross pay triggers the payroll to automatically calculate income tax and national insurance contributions including the employers' national insurance contribution using the standard income tax and national insurance tables which are embedded within the files supplied with the payroll software system.

Having calculated the net pay the payroll software then goes that extra step and automatically completes the time consuming paye deduction sheets, all arranged in the same appearance as the official inland revenue deductions sheet for recording income tax and national insurance deductions. In addition also included in the employee paye section are copies of the employee P60 certificate, P45 if required and the P14 which is a summary of the pay, income tax and national insurance contributions made by each employee. This feature of the payroll software is extremely valuable in saving employers using the small business payroll solution a great deal of time in paye administration.

Many payroll software systems require the purchase of payslip stationery. The DIY Accounting payroll software is different in this respect. First of all the payslips are all generated automatically from the information in the payroll file which shows the weekly or monthly gross and net pay, income tax and national insurance and the gross numbers to date. The Payslips all preset on payslip templates can be printed at any time on normal A4 copy paper being another money saving feature of the paye solution.

The income tax and national insurance deducted throughout the financial year are automatically collected by the payroll software on an excel copy of the Employers Annual return, the P35. An excel copy in the same format as the inland revenue form which can be simply printed out enabling the payroll figures to then be entered and filed online for employers to both avoid late penalties and receive the online tax free bonus available.

The DIY Accounting Payroll Software is easily integrated into the DIY Accounting Software solutions for both self employed and limited companies when the payroll software files are saved in the same folder as the accounting files providing a complete accountancy solution for clients.

Payroll Software Weaknesses

The DIY Accounting payroll system does not deal with income tax K codes. The income tax code K is used infrequently being applicable to those employees whose taxable expenses exceed the income tax allowance and is often never seen by most employers.

Employer statutory sick pay and maternity leave require to be entered manually. Considered to be a minor weakness since these figures when applicable can be easily looked up on the employers CD-Rom as required.

The quoted package sizes of 5 employees, 10 employees and 20 employees include all employees during the year including new starters and leavers and it is important then to obtain a package likely to be in excess of the total number of expected employees to avoid changing the payroll solution during the financial year.

Pricing

At £14.99 the small business payroll software for up to 5 employees including starters and leavers is almost a giveaway price with many competitive products priced much higher. The 10 employee payroll version is £19.99 and the 20 employee payroll version just £24.99. Considering the paye administrative work the payroll systems save. The packages are not upgraded each year with employers purchasing the new package each financial year.

Conclusion

Exceptionally good value, the payroll system is very quick and easy to use and produces exactly what every employer requires from a small business payroll solution. Accurate income tax and national insurance contribution calculations, significant reduction in paye administration time, regular payslips for each employee, compliance with paye administrative requirements and the satisfaction and valuable tax free bonus prize of producing the payroll on time.

Terry Cartwright is a qualified accountant in the UK designs Payroll Software solutions for small to medium sized business that automates the calculation of Income Tax and National Insurance contributions producing a complete Payroll solution for 1 to 20 employees.

Insurance Claims Management With New Software Programs

The Role of Insurance Companies in Capital Markets

The insurance industry is a vital part of financial markets. Companies promote risk mitigation by offering individuals and organizations various types of insurance products. These products fall under two basic categories - life and non-life/general.

Proceeds from insurance products are converted to long-term investments on behalf and for the benefit of stakeholders, particularly insurance policyholders. These investments can be in the form of corporate stocks, government bonds, and other financial instruments that later earn a projected profit either upon a policyholder's death or at a specified period of time for the insured and his/her beneficiaries. Thus, aside from national and global economies, the insurance industry is essential to personal well-being as well.

Insurance Claims Management: Challenges and Good Practices of Client Service

Unlike life insurance, general assurance protects people and businesses from economic losses caused by natural disasters and human-made injuries, as well as related legal liabilities. In both cases, however, insurers are aware that it is imperative for them to satisfy policyholders with company services. With this context, some companies have developed software programs designed to assist client insurance providers in their claims management needs, such as producing timely and high-quality reports.

R. Qaiser's "Claims Management in General Insurance - Issues & Concerns" (n.d.) specifies underwriting and claims settlement as an insurance firm's key functions. The article notes that the latter "can be used as a marketing tool" and helps retain customers. It also states how necessary it is for insurance companies to "manage" the nitty-gritty aspects of claims processing that includes determining the "Average time being taken for the settlement of a claim and the claim settlement ratio and how it compares with other operators in the market." Moreover, "a corporate claims management philosophy" should be adopted to inspire insurance claims personnel in serving clients efficiently, including providing them with compensatory approaches, if applicable.

In 2004, the Organization for Economic Cooperation and Development (OECD) adopted a set of guidelines for good practice for insurance claim management. The OECD Insurance Committee defined these guidelines that serve as a benchmark for insurance companies in its member countries, including the United States (US). Such measure is aimed to improve the industry's public image, to sustain its marketability, and to reduce losses. Adequate information and assistance to policyholders, good claim filing methods, and expeditious claim settlement were among the cited standards.

Providing Efficient Insurance Claims Service with New Software Programs

To help maintain a client base and achieve efficient claims management set by OECD, many companies have started developing software programs for insurance companies and professionals. With committed personnel and reliable IT (information technology) facilities that ensure confidentiality of data and are compatible with mobile communication gadgets like iPhone, some reputed companies have developed software tools that can document and help analyze critical insurance narratives, financial, and statistical information. Let us take a look at some of them.

• Claims Management Software programs generally cater to insurance and risk claims departments, third party claims administrators, and risk managers, especially those involved in legal cases. They feature an advanced search mechanism that easily finds one or more needed files, information, and transaction records for general insurance claims. They can produce reports that can be exported to spreadsheets, Microsoft Office applications, and ASCII text files.

• Some software programs track financial information relevant to construction defect litigation procedures. Data including payments, insurer shares, and other expenditures, are stored in a virtual repository that can be accessed anytime and anywhere by vendors, lawyers and claims handlers.

• Some software programs equip insurance claims professionals with activity documentation, organized notes, and database references. They also provide billing techniques that instantly monitor time-bound tasks. These include work periods and communication with clients through phone calls, faxes, and mails, among others.

JDi Data Corporation has provided insurance claims software since 1992. JDi Data offers web based workers compensation software and also claims systems for insurance claims departments, third party administrators and risk managers to administer property, casualty and general liability claims. JDi Data has built a reputation in quality claims management software with special emphasis on specialty lines and complex litigation.

Product Review - UK Paye And Payroll Software

DIY Accounting Payroll Software is written on a series of excel spreadsheet templates.

Small business payroll solution available in the UK for up to 5 employees, up to 10 employees and a third version of the payroll for up to 20 employees.

The basic details of each employee are entered on an Employee Details worksheet including personal details such as name, address, starting date, income tax code and national insurance details. Details which every employer needs to maintain anyway to satisfy the requirements of operating a paye scheme. The payroll software then uses the pay data entered such as income tax code and dates and national insurance dates to calculate the income tax deductions and national insurance contributions of both employee and employer. Once the employee details have been entered running a paye system couldn't be easier.

The payroll software pre-enters each employee's name on the payroll each week or month and simply entering the employee gross pay triggers the payroll to automatically calculate income tax and national insurance contributions including the employers' national insurance contribution using the standard income tax and national insurance tables which are embedded within the files supplied with the payroll software system.

Having calculated the net pay the payroll software then goes that extra step and automatically completes the time consuming paye deduction sheets, all arranged in the same appearance as the official inland revenue deductions sheet for recording income tax and national insurance deductions. In addition also included in the employee paye section are copies of the employee P60 certificate, P45 if required and the P14 which is a summary of the pay, income tax and national insurance contributions made by each employee. This feature of the payroll software is extremely valuable in saving employers using the small business payroll solution a great deal of time in paye administration.

Many payroll software systems require the purchase of payslip stationery. The DIY Accounting payroll software is different in this respect. First of all the payslips are all generated automatically from the information in the payroll file which shows the weekly or monthly gross and net pay, income tax and national insurance and the gross numbers to date. The Payslips all preset on payslip templates can be printed at any time on normal A4 copy paper being another money saving feature of the paye solution.

The income tax and national insurance deducted throughout the financial year are automatically collected by the payroll software on an excel copy of the Employers Annual return, the P35. An excel copy in the same format as the inland revenue form which can be simply printed out enabling the payroll figures to then be entered and filed online for employers to both avoid late penalties and receive the online tax free bonus available.

The DIY Accounting Payroll Software is easily integrated into the DIY Accounting Software solutions for both self employed and limited companies when the payroll software files are saved in the same folder as the accounting files providing a complete accountancy solution for clients.

Payroll Software Weaknesses

The DIY Accounting payroll system does not deal with income tax K codes. The income tax code K is used infrequently being applicable to those employees whose taxable expenses exceed the income tax allowance and is often never seen by most employers.

Employer statutory sick pay and maternity leave require to be entered manually. Considered to be a minor weakness since these figures when applicable can be easily looked up on the employers CD-Rom as required.

The quoted package sizes of 5 employees, 10 employees and 20 employees include all employees during the year including new starters and leavers and it is important then to obtain a package likely to be in excess of the total number of expected employees to avoid changing the payroll solution during the financial year.

Pricing

At £14.99 the small business payroll software for up to 5 employees including starters and leavers is almost a giveaway price with many competitive products priced much higher. The 10 employee payroll version is £19.99 and the 20 employee payroll version just £24.99. Considering the paye administrative work the payroll systems save. The packages are not upgraded each year with employers purchasing the new package each financial year.

Conclusion

Exceptionally good value, the payroll system is very quick and easy to use and produces exactly what every employer requires from a small business payroll solution. Accurate income tax and national insurance contribution calculations, significant reduction in paye administration time, regular payslips for each employee, compliance with paye administrative requirements and the satisfaction and valuable tax free bonus prize of producing the payroll on time.

Terry Cartwright is a qualified accountant in the UK designs Payroll Software solutions for small to medium sized business that automates the calculation of Income Tax and National Insurance contributions producing a complete Payroll solution for 1 to 20 employees.