BT is rolling out an online payroll service for small and medium-sized enterprises (SMEs) on its small business portal, called btclick for business, which it claims is the largest such website in the UK.

The telco says the service will alleviate a growing legislative burden on small companies, which must grapple with new legislation such as the Minimum Wage and the Working Time Directive, as well as changes to basic areas such as PAYE and National Insurance.

The website is integrating the staffpay.net system developed by Surrey-based payroll specialist Rutherford Webb.

"We recognise that payroll is a complicated area for small businesses," said Grant Broster, head of BT's Internet for Businesses operation. "The availability of this service on the BT portal will free small businesses from the burden of legislation - they will no longer need to know the 'ins and outs' of employment law. It is also more cost effective than bureau-based services."

To use staffpay.net you sign up online and get sent a CD with all the security controls for access to your payroll accounts, held on a secure server at staffpay.net. You don't need to worry about data back-up and the security of your data (it's less secure held on a PC in your home), as that's all part of the service.

You enter details of people to be paid through the website, and tell the system when you want to have a payrun. After the calculations are done, you get a print file to download and check. Once correct, you authorise payment through BACS, the UK's largest clearing house, and payslips are sent directly to people on the payroll. Help features are built into the system, and staffpay.net also offers email and phone support.

The system keeps up to date with changes in legislation as they happen. For example, the Working Families Tax Credits and Disability Tax Credits legislation that came into operation in the current tax year are in the system and operative for all payments made in 2000/2001.

The service has an initial registration fee to cover the cost of account set-up, but ongoing fees are estimated to be as little as £1 per payslip. Staffpay.net is currently offering a 60-day free trial.