How to Choose the Right Payroll Software for Your Organization
Increasingly, payroll has become a very important component of business operations, which is why it should not be taken lightly. Organization’s most valuable assets are their employees, and they dedicate a lot of time to hiring, training, and retaining competent employees to support their operations. Therefore, payroll is an essential function for organizations to pay consistently and on time.
In this article, we examine the factors to consider when choosing the right payroll software for your company:
1) Safe & Private: Whenever we discuss payroll software, we should discuss sensitive data and how that data must be treated with extreme care. Thus, the software you choose must comply with all security protocols and ensure that all data is protected so employees and employers can manage documents without concern.
2) Look for Features: In addition to payroll processing and tax preparation, while choosing software, consider whether you will be able to set up multiple payment arrangements, such as direct deposit, paper checks, prepaid debit cards, etc. Check out options such as multiple wage rates, garnishment payments, PTO management, workers’ compensation administration, unemployment insurance, and detailed payroll reports.
3) Payroll Cost: Payroll software is available at a wide range of prices, but it is important to consider the Total Cost of Ownership (TCO), which includes expenses for implementation, training, and administration. Most online payroll software providers charge a flat monthly or per-pay period fee and a per-employee fee. Basic plans usually cover payroll, while more advanced services, such as direct deposit, year-end tax planning, W-2 printing, mailing and reporting, direct deposits, check signing, etc. are charged separately.
4) Updated Automatically: Good payroll software is not just something that is easy to use, but also that it is easily updated with all the relevant fields. From automatically updating each employee profile to reflecting changes in contract pay slips instantly, offering flexible compensations, accepting monthly changes in salaries, synchronizing absences and sick leaves with the company’s calendar, the software should perform things automatically.
5) Employee self-service portal: Your payroll software should have an employee self-service portal that allows employees to submit proof of reimbursements or income tax declarations online, set deadlines, and send automatic reminders so they submit proofs on time. The self-service portal should also allow employees to view or download crucial payroll documents, such as payslips, tax worksheets, and Form-16.
6) Payroll reports: When looking for payroll software, be sure that the software provides reports with a complete picture of your organization’s payroll expenses, including salary registers, payment summaries, and reimbursement data.
7) Setting Up: It’s crucial to determine if you can set up payroll software yourself or if you need assistance. Not all payroll software comes with built-in premium support. This is sometimes an add-on you need to pay for if you do not have in-house expertise.
Always remember, the right software makes payroll effortless. It can be challenging to switch from an old system to a new one. Therefore, consider the size, pay structure, locations, and recruitment plans of your company before making your decision.
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