All you need to know before buying a payroll software
Payroll software are commonly used by corporate establishments to manage the process of distributing salaries to their employees. The software is used by companies to perform tasks such as calculating payments, taxation, and sending money every month to the bank accounts of the employees. Payroll software eases the entire payment process by just entering the payment information of the employees. Standard payment details such as their bank account details, salaries, and the hours that they have worked in a week have to be entered. Once this is done, less maintenance is required.
Features of payroll software
Payroll software have gained a tremendous amount of popularity among a lot of companies in a short period.
Their usefulness can be gauged by the fact that they are used by both small as well as big businesses alike.
However, just because everyone around you is using a payroll software doesn’t mean you should just pick one in haste. You must look for certain critical features in the software that will make your job easier. Some of these include
- Managing and processing payroll
This is the most important function that you should look for in choosing the right payroll software. Managing and processing the payroll is the primary functionality of such software; thus, it should be done efficiently.
The software must make sure that every employee is getting compensated correctly and receiving the funds via their preferred payment method. Having this feature in the payroll software will be the foundation for all the other offerings in the software. Depositing the funds
This is another critical feature that your payroll software should have. Disbursing the funds to the bank accounts of the employees is one of the primary tasks of the software, and it should be able to perform that efficiently. Paying the employees through a check at the end of the month is an obsolete payment method and has been replaced by payroll software now. Thus, the software that you pick, should be well versed with the functionality of making sure that the employees get paid.
When the payroll software performs the function of direct deposits, it is beneficial for not just the employee but also the employer. When money gets deposited directly into the account, the employer does not have to worry about printing checks and then distributing. It saves them the printing cost and, of course, a lot of time. Similarly, it helps the employees to have their pay deposited directly to their account, without worrying about losing their paychecks or experiencing any check frauds. Additionally, it is an environmentally friendly option since it saves a lot of paper printing. Tax filing
Filing taxes correctly can be a herculean task, so having payroll software with the feature of tax filing is extremely necessary and beneficial. All best payroll software services come with this by default. For example, they offer calculation of annual taxes, which can be a time-consuming process and can potentially contain errors when done manually. Therefore, to avoid any miscalculation or wrong computing of taxes, payroll software can come to your rescue. Besides, good payroll software should be efficient enough to create tax documents such as 1099s and W-2s. These documents should be created automatically by the payroll software. In addition to this, the software should have the functionality of sending documents to the right agencies. Managing details
With the help of payroll software, the Accounts and HR departments can save a lot of time, which they would otherwise spend on managing all the payroll details of the employees. This can be especially useful in large enterprises where the number of employees is more. Moreover, with the help of a payroll software, both departments can reduce the chances of an error, which can occur during calculations or while data entry. While managing the finances of a company, even a small mistake of placing a decimal point at the wrong place can cost the organization a hefty loss. Therefore, reducing those errors is essential, and that can be easily taken care of. Security
When a software contains such critical information about the organization, security becomes essential. To ensure that all important documents such as tax details, employee details, and all the other payroll related information are protected, every payroll software comes with password protection.
This is another critical feature that your payroll software should have. Disbursing the funds to the bank accounts of the employees is one of the primary tasks of the software, and it should be able to perform that efficiently. Paying the employees through a check at the end of the month is an obsolete payment method and has been replaced by payroll software now. Thus, the software that you pick, should be well versed with the functionality of making sure that the employees get paid.
When the payroll software performs the function of direct deposits, it is beneficial for not just the employee but also the employer. When money gets deposited directly into the account, the employer does not have to worry about printing checks and then distributing. It saves them the printing cost and, of course, a lot of time. Similarly, it helps the employees to have their pay deposited directly to their account, without worrying about losing their paychecks or experiencing any check frauds. Additionally, it is an environmentally friendly option since it saves a lot of paper printing.
Filing taxes correctly can be a herculean task, so having payroll software with the feature of tax filing is extremely necessary and beneficial. All best payroll software services come with this by default. For example, they offer calculation of annual taxes, which can be a time-consuming process and can potentially contain errors when done manually. Therefore, to avoid any miscalculation or wrong computing of taxes, payroll software can come to your rescue. Besides, good payroll software should be efficient enough to create tax documents such as 1099s and W-2s. These documents should be created automatically by the payroll software. In addition to this, the software should have the functionality of sending documents to the right agencies.
With the help of payroll software, the Accounts and HR departments can save a lot of time, which they would otherwise spend on managing all the payroll details of the employees. This can be especially useful in large enterprises where the number of employees is more. Moreover, with the help of a payroll software, both departments can reduce the chances of an error, which can occur during calculations or while data entry. While managing the finances of a company, even a small mistake of placing a decimal point at the wrong place can cost the organization a hefty loss. Therefore, reducing those errors is essential, and that can be easily taken care of.
When a software contains such critical information about the organization, security becomes essential. To ensure that all important documents such as tax details, employee details, and all the other payroll related information are protected, every payroll software comes with password protection.
Benefits of using payroll software
When you compare the time that a payroll software will take to complete a task with the duration it will take you to do the job manually, you will understand that the cost you are paying for the software is worth it. The software offers a plethora of benefits for both, the employee and the employer. Here, we list down some of the most useful ones.
- Cost-effective and scalable option
To run a company, it is essential that every tool and level manpower that you are using are cost effective. When it comes to using tools and software, every organization wants to have something scalable. It is for a simple reason that no company wants to invest big during its early phase. Thankfully, when it comes to payroll software, you have the flexibility to choose among many options at monthly, six-monthly, and yearly plans. You can pay on a per-employee basis, making payroll software an extremely cost-effective tool. - Easy to use
The idea of using a new online tool can be frightening for many. However, with payroll software, you can easily have the configuration done with various features based on the requirement of your organization. Personnel from the HR department can easily populate important data such as the salary structure of the employees and salary-related information, among others into the system. Once this is done, the entire information of an employee will be just one click away. The payroll of the entire workforce can be obtained with one simple click of a button with the help of a payroll software. Payslips can be published without any hassle and salary transfers can be made automatically via banks without losing any time. The user interface of most payroll software is quite self-explanatory, and you will not require much technical know-how to understand it. - Takes care of the regulatory aspects
Statutory remittances, such as provident fund and employee state insurance, monthly tax computing, etc. can be tedious tasks and have a lot of room for human error. These mistakes can cost a tremendous amount of losses to the organization. This is in addition to the fines and penalties, which can be levied on a company if anything goes wrong with taxation. However, with payroll software, you do not have to worry about these things. The software will keep you updated about the latest laws, recent changes in the tax slabs, and all the other details, which are important for every organization to save themselves from any kind of fines. - Offers tools for payroll reconciliation
Payroll software can offer several reconciliation tools that help you check the accuracy of every payroll meticulously. With the help of these tools, employers can compare the current month’s payroll with the previous month’s payroll easily. They can also have a customized salary register as well as payroll statements. This benefit of using payroll software allows you to be 100 percent sure that there have been no mistakes committed in the payroll of any employee. - Generates multiple reports
The software not only allows you to manage the payrolls in the company but also helps you generate several reports. These include- PT reports
- Reconciliation reports
- Payroll statements that can be easily customized
- MIS reports
- Reports that come under the Shops & Establishment Acts in different states
- Reports that come under the CLRA Act in various states
- Manages attendance and leaves
Having different systems to manage leaves, attendance, taxes, and payroll can make it a tedious task to calculate the salary of an employee. With payroll software, it can be your single, go-to tool for all such information. All the necessary information required for computing the payroll of an employee can easily found in the system. This can save you a lot of manhours.
Certainly, payroll software can offer various benefits. But before you invest in one, you must understand your needs and, consider all the pros and cons. Some drawbacks can arise when you start using this software. So, before you decide to switch from manual payroll to software, you must have complete knowledge about it.
Best payroll software to consider
Now that you know the benefits and features of payroll software, it is important that you know which ones to pick. There are so many options available that one might easily get confused.
- Gusto
Gusto has been known for its extreme ease of use. It allows users to save a lot of time and reduces the possibility of errors during data entry. The platform is loaded with features and comes with an extremely user-friendly interface. The company keeps constantly innovating, which ensures the users that their software is up-to-date with all the latest trends. The pricing of the platform is customized based on the needs of the user, and it can be integrated easily to a level where it exactly meets your needs. The platform can perform automatic payments, calculations, and pay federal, state, and local payroll taxes of the company. - QuickBooks Pro
QuickBooks Pro is one of the most sought-after payroll software in the market. It comes with advanced tools that allow the companies to automate their complete payroll process, and that’s what it makes a favorite. The platform is loaded with efficiency, which allows it to let organizations combat the most common payroll problems like erroneous data, delayed jobs, and taxation. QuickBooks Pro comes with one of the accurate bookkeeping tools on which real-time accounting can be done. This allows the users to get 100 percent accurate payroll data whenever they check. - OnPay
Loaded with features and its ease-of-use make OnPay one of the most loved payroll software. Its ease of scalability makes it a favorite among small and medium companies. Various details about the payroll, such as working hours of every employee and reimbursements, can be easily maintained using OnPay. With this platform, employees get to put in their personal data, edit it, and pull out tax-related documents online. This allows the employees and their managers to save a lot of time for other important areas of concern that need their attention. - Xero
Xero not only gives you payroll benefits but also an efficient tool that impeccably manages the accounts and online bookkeeping benefits. The platform lets you keep a real-time eye on your accounts and transactions. This means even people who do not have any experience in managing accounts can run their business like a pro. Xero is also loaded with some extremely advanced features and functions. It allows banking, PayPal, credit card reconciliation, inventory management, tax management, payroll calculations, invoicing, and integration with more than 500 third-party apps. The interface of the platform is user friendly and can be understood easily. It allows employers to track the working hours of the employees, approve leaves, and give controlled access to employees. To let the employees access the platform, Xero can also be accessed on mobile apps on Android and iOS platforms.
Apart from these, other reliable payroll software options include Vibe HCM, Patriot Payroll, Workday Payroll, Paycheck Flex, PeopleSoft, SurePayroll, UltiPro, Namely, Dayforce HCM, and Justworks. You can also explore other options include Intuit Payroll, Sage HRMS, ADP Workforce Now, Zenefits, Wave, and Sage 50cloud. Analyze the offerings of each payroll software provider along with their advantages and disadvantages, and then make a wise and informed decision,
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