When it comes to payroll software, there are many things to consider. What features do you need? What will the system be used for? How will it integrate with your other software? These are all critical questions that need to be answered before you make a purchase.
This blog post will provide you with a list of 7 questions that you should ask yourself before deciding. By asking these questions, you will be able to identify your specific needs and ensure that the payroll system you choose is perfect for your business!
Essential Features of Payroll Software
Before we begin, let us understand some essential features of payroll software.
Payroll processing is the most crucial function of payroll software. It includes calculating employee salaries, deductions, and taxes.
Time and Attendance Tracking
Most payroll systems come with time and attendance tracking features. It allows you to track employee hours worked, vacation days taken, and sick days used.
Payroll systems can also help you manage employee benefits. It includes tracking employee health insurance, 401k contributions, and other benefit deductions.
Multiple Salary Disbursement Options
When choosing payroll software, you should consider the different salary disbursement options available. Some systems allow you to direct deposit employee salaries into their bank accounts. Others allow you to print checks or distribute wages through PayPal.
You will also want to consider how the payroll system will integrate with your other software. For example, if you use QuickBooks for accounting, you will want to find a payroll system that integrates with QuickBooks.
Automated Tax Calculations
Payroll software can also automate tax calculations. This feature is handy for businesses with employees in multiple states or countries.
Employee Self-Service Portals
Many payroll systems come with employee self-service portals. It allows employees to view their pay stubs, request time off, and update their personal information.
Now that we have a basic understanding of payroll software let us move on to the questions you should ask yourself before deciding!
1. What is My Business Size?
It is an essential question since payroll software is typically priced based on the number of employees. If you have a small business with less than 50 employees, you will need a different payroll system than a large business with 500 or more employees.
Additionally, some payroll systems have different versions for small and enterprise businesses. Make sure to choose a system that is designed for your business size.
Once you know your business size with respect to payroll systems, you can move on to the next question.
2. What is My Budget for Payroll Software?
Pricing for payroll software can range from $0 to $500 per month, so it is vital to find a system that fits your budget.
Additionally, some payroll systems have a one-time setup fee. It is usually around $200-$500.
If you are not sure how much you should budget for payroll software, we recommend talking to a Payroll Specialist. They will be able to help you understand the pricing of different systems and choose a system that fits your budget.
Now that you know how much you are willing to spend on payroll software, you can move on to the next question.
3. What are the Types of Employees in my Company?
There are three types of employees that you should consider when choosing payroll software:
A. Full-time employees
B. Part-time employees
C. Contract workers
Each type of employee has different payroll requirements. For example, full-time employees are typically paid a salary, while contract workers are usually paid an hourly wage.
Payroll systems typically have different features for each type of employee. Make sure to choose a system that can accommodate the employees in your company.
Now that you know the types of employees in your company, you can move on to the next question.
4. What are My Company’s Payroll Requirements?
Before choosing a payroll system, you should clearly understand your company’s payroll requirements. Some things you should consider are:
How often do you run payroll?
Do you have employees in multiple states or countries?
What types of deductions do you need to withhold from employee paychecks?
How do you want to disburse employee salaries?
Once you clearly understand your company’s payroll requirements, you can move on to the next question.
5. What are the Payment Systems in My Organization?
You should also consider the payment systems in your organization when choosing payroll software. There are two types of payment systems:
1. Payroll Cards
2. Direct Deposit
Payroll cards are debit cards that employees can use to access their salaries. Direct deposit is when an employee’s salary is deposited directly into their bank account.
Some payroll systems only support one type of payment system, while others support both. Make sure to choose a system that supports the payment system you want to use.
Now that you know the payment systems in your organization, you can move on to the next question.
6. What are the Compliance Requirements in My Industry?
Compliance requirements vary by industry. For example, restaurants must comply with wage and hour laws, while banks must comply with anti-money laundering regulations.
Payroll systems have different features to help companies comply with various regulations. Make sure to choose a system that has the compliance features you need.
Now that you know the compliance requirements in your industry, you can move on to the next question.
7. Are all My Employees Working in the Same Location?
If all your employees work in the same location, you can choose a payroll system that does not have features for remote employees.
However, if you have remote employees, you should choose a system with features for remote employees.
Some payroll systems have time tracking features that allow remote employees to clock in and out. Other systems have GPS tracking features that will enable you to track the location of your employees.
Make sure to choose a system with the features you need for your remote employees.
Choosing the right payroll system for your business can be a daunting task.
However, if you ask yourself the right questions, you can narrow down your options and choose a system that meets your needs.
By asking yourself these seven questions, you can evaluate your payroll software requirements and choose the right system for your business.