Managing YTD and payslips with payroll software
As an accountant, understanding and managing Year-to-Date (YTD) and payslips is an essential part of delivering accurate and professional payroll services to your clients. YTD figures provide a detailed snapshot of an employee’s earnings, deductions, and tax contributions over the course of a financial year, ensuring compliance and transparency. With the right payroll software, managing YTD and payslips becomes straightforward and efficient
What does YTD mean in payroll, and why does it matter?
If you’re reading this as a payroll accountant, chances are you’ve got a strong understanding of what YTD means in payroll and why it matters. But your clients might not – so it’s useful to explain simply.
YTD payslips display cumulative earnings, tax deductions, and other payroll figures from the start of the financial year up to the current pay period. They’re vital for:
- Employee clarity: Helping employees understand their earnings and deductions over time. YTD provides a summary of each employee’s net and gross pay
- Reporting: Ensuring accurate reporting to HMRC for tax and National Insurance purposes, as well as giving an annual overview of costs
- Record-keeping: Maintaining a clear and accurate payroll history for employers and employees alike, helping with budgets and planning.
As YTD figures are updated with each payroll run, errors can quickly compound if not managed correctly. That’s where Capium’s payroll software comes in.
How Capium payroll software simplifies YTD and payslip management
Capium’s payroll software is designed specifically for accountants, offering features that make managing YTD and payslips seamless and compliant. Here’s how it can help:
1. Automated YTD calculations
Manually calculating YTD figures can be time-consuming and error-prone. Capium’s payroll software automates these calculations, ensuring that every payslip reflects accurate year-to-date earnings, taxes, and deductions. This automation reduces the risk of mistakes and saves significant time during payroll processing.
2. Real-Time HMRC integration
Staying compliant with HMRC requirements is a key part of managing payroll. Capium’s software integrates directly with HMRC, ensuring that all YTD figures align with Real Time Information (RTI) submissions. This means you can be confident in the accuracy of your clients’ payroll data.
3. Customisable payslip formats and reports
Capium allows you to generate payslips tailored to your clients’ needs, including clear and concise YTD summaries. The ability to customise is also a powerful tool when it comes to payroll reporting – helping your clients see where they might be able to give pay rises, highlight areas they might need to cut back, and align against payroll budgets.
4. Employee self-service portal
Capium’s employee portal empowers your clients’ teams to access their payslips, including YTD details, anytime and anywhere. This reduces administrative burden on you and your clients by minimising payroll-related queries.
Best practices for managing YTD and payslips using software
To maximise the benefits of Capium’s payroll software when it comes to YTD, consider these best practices:
- Double-check input data: Ensure that all employee details, pay rates, and deductions are entered correctly at the start of the financial year. If you’re switching payroll software providers, importing starting balances correctly will be key.
- Regular audits: Use Capium’s reporting tools to conduct regular audits of YTD figures, catching and correcting any discrepancies early.
- Educate clients and their teams: Providing guidance on how to read YTD payslips and the importance of these figures for tax and financial planning can be a great value-add for clients.
Why choose Capium’s payroll software management?
Capium’s payroll software is built with accountants in mind, offering the tools and features you need to manage YTD, payslips, and payroll reporting efficiently and accurately.
Whether you’re looking to streamline your existing payroll processes or expand your practice by offering payroll services, Capium provides the support and functionality you need to succeed. Explore our payroll software today and see how it can simplify payroll management for your practice.
