Payroll software is a suite of tools designed to help companies more efficiently and accurately handle payroll activities such as payroll processing, employee paycheck disbursement, and tax calculation and filing.
Payroll software is extremely efficient and replaces manual, error-prone processes with streamlined systems you can automate to ensure that employees are paid on time and taxes are appropriately calculated and filed. Fines and penalties for incorrect or late payroll taxes can be quickly become hefty costs for a company, and using Payroll software can help minimize this risk by automatically calculating the appropriate taxes and withholdings for each employee to ensure that all taxes are accurate and filed on time.
The top Payroll software features and tools include:
- Payroll Processing, Paycheck Disbursement, and Tracking
- Direct Deposit and ACH Payment Options
- Tax Calculation, Compliance, and Filing
- Compensation Tracking
- Self-Service Tools
- Reporting & Analytics
- Tax and Labor Law Compliance Management
The benefits of Payroll Software include:
- Eliminates payroll errors and costly mistakes
- Ensures payroll processing is accurate and on-time
- Offers more payment options for employees (check, direct deposit, payment card, etc)
- Automates payments for employees
- Saves time, reduces costs, and improves efficiency
- Easy to use without technical expertise
- Improves compliance with tax calculations and filing options
- Provides reporting and analytics for increased insights and process improvements
Cloud-based software solutions are a continuing trend in business as they offer mobility and flexibility demanded by an ever more mobile business landscape. Payroll software is no exception. More businesses are choosing to embrace SaaS payroll solutions that provide convenient and mobile-accessible tools to support a business on the move. This also means that small companies can afford payroll systems much earlier than in the past, simply due to the lower cost and barrier to entry on a cloud software versus a more expensive on-premise system.
Employee self-service dashboards and mobile access to payroll software solutions are also trending. As a result, payroll software vendors are focusing on providing more employee-focused tools that people can use to manage their time and benefits with their company more seamlessly.
Payroll is an essential part of every business with employees. As you’re growing your business, you will need to put the right processes in systems in place to ensure that you have a reliable and efficient way to keep your employees paychecks flowing out on time, while also accounting for variable such as taxes and benefits.
Selecting or switching to the perfect payroll software solution for your company involves deep business examination and thoughtful research and analysis of the features and system capabilities that will best suit your business now and scale with you as you grow.