Payroll is one of the most important functions in any business. It’s also one of the trickiest – especially if you have a lot of employees or non-standard work arrangements. Since there are so many different types of businesses and ways to handle payroll, it can be challenging to find the right software that meets your needs and fits within your budget.
When it comes to managing your business, there are a lot of tasks and administrative chores to keep track of. Finding the right payroll software can help you tackle some of these responsibilities with ease. Using the right software, for example, can take some of the stress out of processing employee wages and tax payments.
There are many different options when it comes to choosing a payroll system for your business, which can make the decision process a little overwhelming. This guide will walk you through what you need from payroll software and explore your various options so that you can find the perfect fit for your business.
What is Payroll Software?
Payroll software is an application that automates and simplifies your payroll process. If you have employees, it’s a must-have piece of software that will help you calculate, manage and process payroll for your team. It will take care of all the calculations and rules for calculating employee taxes, deductions, and payments. It will also let you manage your employees’ hours and work schedules, letting you create and manage shift schedules, see their availability, and find their location in real time.
Most payroll software also offers other helpful tools, like benefits management and hiring and onboarding tools. It can be used with all types of businesses, from large corporations to small, one-man shops.
Why Use Payroll Software?
There are many reasons to use payroll software. Some of the most important benefits include: –
- Simplicity – Payroll is a complex process that involves a lot of calculations. It’s also a legal process that must be followed to the letter. With the right software, you can simplify the process, saving you time and stress. Your employees will thank you for it, too, since they don’t want to be stressed out about their paychecks, either.
- Accuracy – Accurate payroll is crucial to your business’s success. It doesn’t matter how much your employees love their job if they can’t pay their bills at the end of the month because your business isn’t paying them correctly. Payroll software can help you get everything calculated correctly, so you don’t end up in hot water with the government or your employees.
- Compliance – This goes along with being accurate, but it’s so important that it deserves its own bullet point. You must follow payroll laws when calculating, managing, and paying your employees’ wages. Payroll software can help you follow these laws so you don’t end up in hot water with the government, your employees, or both.
- Customer support – When you choose the right payroll software, you can also expect customer support. This can be helpful in all kinds of situations, from troubleshooting to help with calculating taxes and benefits. Having this built-in support system can save you time and stress when something goes wrong.
- Integrations – Many payroll software platforms are built to integrate with other software systems that your business already uses, like HR and CRM software.
Types of Business & Who Should Use Payroll Software
Any business that employs workers—including part-time, full-time, and seasonal employees—should use payroll software. You should also use payroll software if you’re paying contractors, vendors or other service providers using payroll deductions. You can also use payroll software to manage self-employed workers, such as contractors, freelancers and other independent workers.
If you have employees or are paying contractors or other workers, you need payroll software because you have to follow certain rules and regulations when calculating and paying out their wages. Using the wrong method or not following the rules can lead to hefty fines and penalties for your business. Your local government will have detailed information about what you need to do.
How to Choose the Right Payroll Software for Your Business?
You want to make sure that whatever payroll software you choose is a good fit, both for your business and for the type of business you run. You also want to make sure that it offers the features you need, as well as those your employees will find useful. Here are some things to consider when choosing payroll software.
- Type of business – Before you start researching and comparing payroll software, you need to know what type of business you run. This will help you narrow down your options, making it easier to choose the right software.
- Employee size – You probably already have an idea of how many employees you have and the size of your staff. If not, you can figure it out by counting the number of employees you have, how long they’ve been working for you, and how often they get paid.
- Employee type – You also need to know what type of employees you have. Are they full-time, part-time, or contractors? Are they regular or non-exempt employees? Knowing their type will narrow down your options further.
- Unique needs – There are many different types of payroll software systems. You should find the one that best suits your specific needs and your business’s overall workflow.
Payroll Software: The Pros and Cons
On the whole, payroll software is a helpful investment for your business. There are, of course, a few drawbacks to consider. Among them are:
- Price – Depending on what type of software you use, as well as the size of your business and the features you need, payroll software can range in price. You can find free or inexpensive software, but you might want to consider spending a bit more money on a better system that will remove more of the stress from your plate and be more reliable.
- IT requirements – If you’re looking for software that you can use without a dedicated IT person on staff, you’ll have fewer options. These systems are often web-based, so you will need internet access to use them.
- Maintenance – Once you’ve decided on the right payroll software, you must keep it up to date. New laws and regulations come out all the time, and your software provider should update its software to reflect these changes.
Choosing the right payroll software can seem like a daunting task, but it doesn’t have to be. Start by finding out what type of business you run, how many employees you have, and what their types are. This will help you narrow down your options, making it easier to find the perfect match for your business. Choose OPEN’s payroll, which is a complete payroll software that offers the most comprehensive suite of tools for your business.