Buyer Guide: Payroll Software
Payroll management of a company is important, as employees are the bricks and stones of an organization. Manual processing of payroll is time-consuming and exhaustive, especially in large organizations. Payroll defines how much an employee makes a month, the benefits offered by the company, deductions with respect to medical insurances, PF, Loss of pay, etc. and wage garnishment. Some organizations recruit freelancers and contractors for specific projects to be done. Payroll software plays an important role here. Payroll processing can happen in timely increments. Some organizations credit employees’ banks directly or give out checks manually. This can be taken care of by Payroll software. There are some exclusive options where employees can be paid through re-loadable payroll cards that work like an ATM card.
- Large organizations with more than 100 employees can set up an in-house payroll system.
- Small organizations can use this software to only generate payroll while other HR and admin processes can be handled manually by an employee.
- Very small organizations can outsource their payroll processing to a third-party, to keep record of how much revenue is generated and how much is being given out.
Why Payroll Software?
Payroll software, similar to accounting software, overlap accounting features in many aspects. While payroll software is all about payroll processing, tax payments, employee benefits and bonuses, revenue details and more, accounting software only has payroll management as an additional feature. Tracking benefits and time and attendance management are also included as dedicated payroll solutions.
Payroll Software Types
Basic payroll features are included in all software, but a payroll software that fits all-sized businesses is unavailable. If your business expands from a small to large-sized enterprise, then purchasing a payroll software that suits the size of your company matters. When shifting from one payroll scheme to another, checking if the payroll software you purchase can integrate with existing software is crucial. The types of Payroll software are:
- Small Business Payroll Software (50 employees or less)
- Medium-sized Business Payroll Software (100 employees)
- Large Enterprise Payroll Software (More than 100 employees in different locations and different countries)
What to Look for in Payroll Software before Buying
Many types of payroll software solutions are out in the market and buying the right software that suits your business needs is important. The key factors to take note of, before buying are:
- Pricing – Comparing prices from different vendors by looking at the features that are required for your company is important. Cloud-based software is cheaper than an on-premise software. The features included in the package offered should be carefully analyzed, as some software tools may contain a lot more features for a cheap price than other software tools that don’t.
- Flexibility – Changing from a small sized organization to a large sized one may require software flexibility, to scale up or down depending on requirements.
- Integration – If you have an existing software, the new payroll software must be able to integrate with the software already used for your business, to avoid unnecessary data overlapping.
- Training and Support – Some software offer technical training support to help customers use their product wisely. If there are any technical issues faced, the support team must be readily available to cater to your needs.