Payroll software allows you to calculate your employees’ wages and pay them through direct deposit, among other tasks. Online payroll services automate the process of paying employees who are salaried, hourly, and contingent. Human resource technology and payroll vendors generally sell payroll software as a stand-alone system.
Payroll software is increasingly becoming an integral part of multifunctional, sophisticated Human Capital Management (HCM) systems. Unlike paper-based systems, these software do well to streamline and speed up the process of payroll while simultaneously reducing errors, thereby making it easy for managers to come up with custom paychecks for individual employees.
- 1 Why should you use Payroll Software?
- 2 What are the functions of a Payroll Software?
- 3 What should you consider before getting a Payroll Software?
Why should you use Payroll Software?
By this point, you probably know what a payroll software is used for, but you ought to see what you can get out of it before you choose to use one. Here are some of its benefits:
Ensuring Proper payment for Employees
Mistakes in paychecks can waste your time that you could have otherwise used to optimize company processes. Additionally, an innocent error in the paycheck is enough to potentially build mistrust in your employees. The days of paper-based systems are now over, and you are better off using a payroll software to take care of the key aspects of payment like benefits, expenses, salary grade, deductions, and so on.
Easy and Quick Access to Employee Data
Payroll software helps centralize employment data, including, performance records, timesheets, leaves, contracts, and so forth. This means authorized users should have no problem getting access to employee-related data from a variety of devices or platforms.
Easy Payment of Taxes
Payroll automation typically features built-in location-based tax calculations and reporting. At the very least, you have a system that allows you to preset tax regulations. Payroll software eases the process of computing the taxes you owe and have to pay per employee.
Also, its templates streamline the process of submitting scheduled reports to agencies that regulate this. If there is a change in tax laws, vendors of payroll software generally update their systems accordingly. Payroll software can do a lot to ease the process of paying taxes and minimizing any errors you could make.
Helps you save time
Payroll processes are long and tedious. They are also vulnerable to errors if done manually. This is precisely why you ought to turn to payroll automation to streamline and accurately carry out your payroll processes. Payroll software allows you to consolidate your employees’ data and synchronize it. It also automates calculations, which drastically reduces the margin for error.
With the sheer amount of data we need to maintain, we cannot afford to rely on a third party to protect sensitive data. Payroll management remedies this problem by making employee data accessible only to you and members who are authorized to view this information.
What are the functions of a Payroll Software?
If you are going to invest in an easy payroll software, this is what you can expect it to do for you:
You generally calculate wages based on the employee’s schedule. That could be daily, weekly, twice a week, or monthly. Payroll software consolidates wage-related aspects like salary grade, benefits, leaves, withholding taxes, attendance, policies, and so forth, and calculates wages accordingly.
Once the solutions are manually set up with your rules, the software automates the payroll process. You can customize it in just about any way you like. That could include multiple benefits for specific employees, and so on.
Income tax & deductions
You can use payroll software to process pre and post-tax deductions. You should have no problem complying with the state and federal taxes, and the social security requirements thanks to payroll software. You can expect the software to automatically take care of the latest regulations based on the latest rules.
Payroll software can take care of your expenses, loans, deductions, and other employee costs. Some payroll software have an in-built loan ledger to handle all the employee’s loans that have been approved.
What should you consider before getting a Payroll Software?
You have probably started to entertain the idea of investing in a payroll software to handle your company’s employee-centric processes. However, there are a few things that you ought to consider before taking the plunge:
This should be a no-brainer. If you plan on investing in an excellent payroll software, you ought to make sure it has the features that you are looking for. If you are not sure where to start, ask yourself how you wish to pay your employees. You could make a direct deposit, in which case this software will have to be capable of supporting bank synchronization.
If you wish to pay them through paychecks, this software should be able to print cheques. The other features that business owners generally look for are tax withholding, pay period, supplemental payment, and so forth.
Cloud or On-Premise
This is another thing you ought to consider. Most business processes either operate on the cloud or on-premise. Cloud is known to be easy to set up, feature regular updates, have very little maintenance, and support multi-device accessibility. However, you will end up paying a monthly cost.
Additionally, you will have to store critical data on online servers that you do not have control over. On-premise, on the other hand, requires a significant investment to take care of the servers and licensing, in addition to stellar in house technical talent to maintain your system. You will have to decide based on your budget and priorities.