Payroll software allows your company to automate and keep on top of one of the most time-consuming business tasks. If you’re still using outdated payroll methods such as manual processing or error-prone spreadsheets, however, then now is the time to make the switch.
Keep reading to learn more about payroll software, including what it is, how it can help your business, and the key features you should look for.
What is Payroll Software?
Payroll software is an automated solution that businesses use to handle the entire process of payroll. This involves managing employee wages, salaries, bonuses, and deductions. Not only does it track all payments, but payroll software also keeps payment records for future reference.
When used effectively, payroll software can also enable companies to track time and attendance, tax information, and pay structure.
Automated payroll services vary in cost and functionality and are used by businesses of all sizes.
How is Payroll Software Beneficial to Your Business?
Now that you know exactly what payroll software is, let’s look at the various ways it can help your business. Here are the top benefits of payroll software:
Payroll software acts like a payroll calculator to determine how much each employee should be paid. It does this by analyzing data such as an employee’s base wage or salary, the number of hours worked, and any bonuses or deductions that may be applicable.
It then deposits that sum into their bank account on the set date, without requiring significant input from you, your finance department, or your HR manager.
This automation boosts both accuracy and efficiency when it comes to payroll, saving your company wasted output in dealing with manual payroll methods or error-prone spreadsheets.
Assists with Business Compliance
Payroll software can boost business compliance in a number of critical areas, particularly when it comes to assisting businesses in managing their tax affairs. Automated payroll services ensure that all payments are delivered on time, and serve as an easily accessible archive for previous tax records or reports.
Payroll software from reputable brands will also have strict data protection to safeguard both your business’s and your employees’ sensitive information. This ensures your payroll practices are meeting relevant compliance laws.
Allows You to Handle Payroll In-House
Businesses who aren’t benefiting from the ease and automation of payroll software may instead choose to outsource their payroll services to a third party. Not only does this involve handing over some of your more sensitive data in regard to your employees and business, but outsourcing payroll can also be costly.
Handling your payroll entirely in-house is the most effective way to avoid both of these drawbacks.
Employee Access and Self-Serve Features
Responding to employee requests for access to pay information takes a substantial amount of time and energy. Payroll software enables employees to log into their own accounts and access information such as past payslips. This not only frees up time within your finance or HR departments but also gives employees better control over their own payroll information, thus fostering greater transparency and trust.
The Best Payroll Software Features
When choosing the best payroll software for your business’s needs, there are several key features you should look out for:
This might sound like a no-brainer; however, when choosing payroll software, you’ll want to ensure it gives you complete control over all matters relating to payroll management. Data should typically include each employee’s name and contact information, base salary or hourly rate, employee benefits, tax information, and details on pay advances or reimbursements.
You’ll also want to ensure this information can be quickly and easily edited when needed, and that changes can be applied across the entire payroll database when relevant. This will be beneficial when applying a rate increase across an entire department or company-wide, for example.
You also want your payroll software to work beyond payroll management and actually be able to track key metrics and generate relevant reports. Payroll reporting can not only keep your business on track, but it can also guarantee you’re not underpaying or overpaying any of your staff. Additionally, these reports can provide vital information about employee turnover rates, changes in your tax payments, and many other things your business should be generating vital data from.
Direct Deposit Function
While it’s important for payroll software to calculate payroll for you, it’s also vital that it has a direct deposit function so that payments are made automatically through the application. This will free up considerable time from your finance or HR departments, while reducing the potential for payment errors. It also ensures each of your employees is paid on the same day and at the same time to prevent frustration among departments.
Multiple Payment Options
Employees appreciate it when you can facilitate their chosen method of payment. While direct deposit into a bank account will be the major payment method for most businesses, it’s also beneficial to have access to multiple payment options.
Freelancers, for example, might prefer that you deposit their payroll into their PayPal account. Therefore, be sure to scope out the various payment options before selecting payroll software for your business.
We spoke about employee access and self-serve features as a benefit of payroll software. Bear in mind that not all payroll software will offer this key feature, however. Employees should be able to download their payslips and tax-related documents, claim reimbursements, and get deadline alerts via email or their mobile.
The main advantage for employees is that they can see what is going on with their income without having to meet with the finance or HR department. These departments will then have more time to focus on other important responsibilities.
Integration with Other Key Services
Payroll software should fit into, and enhance, your wider operations. This is why it’s essential that your chosen software integrates with other key services to offer you features that extend beyond payroll. Time tracking, for example, should go hand-in-hand with payroll, as it allows you to keep on top of hours actually worked. Time tracking software also lets you schedule employee shifts, track the location of your team in real-time, and approve timesheets before they get added to payroll.
With Time Tracker by eBillity, you can handle all of this within your business, along with payroll integrations and business reporting – all within the one software. You can even keep track of projects to ensure maximum ROI, invoice clients, approve leave, and more.
Take Advantage of Payroll, Time Tracking, and Business Reporting in One
Start a free 14-day trial of Time Tracker to see how your business can benefit.