Online Payroll Management Software for Small Business

 What is the first thing that crosses your mind when you hear the word Payroll? Chances are you will link payroll to a solution that issues paycheck. Though paycheck is one of the most crucial elements of the online payroll solution, this software performs a wide range of functions such as withholding or filing taxes, managing deductions, and so on.

What if all these payroll-associated tasks are automated? What if you don’t have to calculate the payments or go through the hassle of deducting the taxes from employees’ compensation? The good news is that it is possible! That’s where the online payroll management software comes into the picture. As the name implies, payroll software is designed to automate the whole payroll procedure. With this software integrated into your business, you do not have to complete the payroll process manually.

What is Payroll Software?

Simply put, payroll Software refers to the total amount a company is supposed to pay to its employee for a specific period. It is the responsibility of an employer to make sure their employees and staff get fair compensation for their hard work. As much as important it is, payroll can turn out to be an overwhelming task for an employer. Think about it – you have to track the number of hours and days each employee has worked. You have to deduct taxes from the final payment and distribute fair compensation to each worker. 

Whether you hire an accountant for the job or integrate a cloud-based online solution to automate the task, you will need the HR payroll software to issue paychecks to your employees. You need a system that tracks your employee’s working hours as well as productivity. A system that helps you understand and calculate tax deductions. 

Payroll processing software is a must for large-scale and medium-sized firms. There is no way you can carry out the salary disbursement process on your own. Things get super complicated when you have several departments and each department has hundreds of employees. Even if you hire a qualified and experienced HR team and a few accountants, you are going to need an automated payroll management solution to complete the payroll process. 

In today's busy schedule, it is nearly impossible for large-scale firms to track employee's work hours and productivity status every month. And, that's not the only issue. You will have to get familiar with the state and federal laws about salaries and tax rates to deduct the right amount from employee's paychecks. Let's say you manage to issue paychecks after deducting taxes. But, what about managing the employee salary records? The employer's duty isn't limited to issuing paychecks. They are supposed to keep records of the total amount they have paid to each employee, the deductions, time-off payments, and other benefits manually. This can turn out to be a hectic and time-consuming job for even a small-scale company. 

As an employer, you have to run the business and supervise your employees. You will probably want to invest a significant amount of time and energy in performing the management and marketing tasks. There are times when employers decide to expand their business to the international markets. After all, you will need to grow your brand and the audience to survive the fierce competition. An important part of growth is adapting to technology and the latest trends. Automating your payroll process will not only save you plenty of time, but it reduces the risk of manual errors. 

The cloud-based payroll software can automate a broad range of payroll tasks. Basically, it allows employers to focus on productivity rather than calculating employee's paychecks and deducting taxes. High-quality software enables your employees to get a glimpse into their payment information and the breakdown of the benefits.

Common Capabilities of Payroll Management Solution

The payroll business management solution offers tons of services. Gone are the days when businesses would hire a qualified and trained payroll service provider to issue paychecks to the employees.

Do you know this is often the first and most important technology that startups and new companies purchase? They know how this cloud-based solution can save time and streamline business management. When you are searching for a payroll system, you need to ensure that the solution you are buying and integrating into your firm can offer you the best features. As mentioned above, this software is capable of performing an extensive range of tasks as long as you purchase the best one. Whether you have just started your business or running a multinational company, you must buy the payroll software solution that fits your business requirements and budget.
Business owners must pay special attention to the functionalities of the software they purchase. Here, we have mentioned some important yet common capabilities of quality and reliable payroll management system software. Let’s have a look:

 

• Direct Deposit

A direct deposit is a common method to pay your workers. In direct deposit, the payment is initiated from the employer's bank account and is transferred to the worker's bank. 

There is a reason why the direct deposit is considered the most sought-after method for payment disbursement. First, it is a faster and safer way to transfer payments than payments through mails. The most important reason is that direct deposit saves the details of every transaction in your digital records. 

The time when employers would hand out the paycheck to each employee on the weekend is long gone. Direct deposit is one of the important features of the payroll software. It saves you the printing cost of checks. Basically, it is a win-win for employees and firms. Your employees get their payments on time and you don’t have to record each transaction manually. The details are recorded digitally. 

• Tax Filing 

Another important functionality of a payroll management solution is tax filing. It enables you to automate the calculation of state, federal, and local taxes your business is supposed to clear. 

Like any manual calculation, filing your taxes and calculating the exact amount you owe to the government can turn out to be a hectic task. Moreover, there is a chance you will end up making errors in the calculation. To prevent such issues and miscalculations, it is best for businesses to leave this challenging task to the payroll management solution. 

The best online payroll management software is not only capable of calculating your taxes, but it sends these documents to the right agency. Research suggests one in every 3 small firms spend over 40 hours every year in calculating and filing their federal taxes. If you calculate taxes on your own and make errors, there is a high chance you will face delay in the return. 

• Compliance Management

The employment regulations are getting tougher every year. If the government passes a new overtime rule in the coming years, then it will make payroll even more challenging for businesses.

So, instead of worrying about these new laws and the current regulations, why don't you let the payroll management software manage the process for you? There is no denying that businesses face a lot of difficulties in keeping their employee's payroll process in line with the current state or federal laws. First, you will have to understand employment laws. The second step is to adjust your current payroll procedure according to these new federal laws.

Compliance management is an important feature of the open-source payroll software. Given that the software you have purchased offers compliance management features, rest assured the system will automatically be upgraded if the government passes any new employment law. 

• Employee Self-service (ESS)

Is it possible for you to check all your employees’ remuneration accounts manually if an employee of your firm enquires about their salary? Chances are you don’t even have time to access your payroll management system to gather information about your worker’s salary, let alone looking into the accounts book. 

ESS or Employee self-service feature in the payroll processing solution can take one of the biggest burdens off your shoulder. 

The software enables employers to provide their employees with access to the software. You get to provide them with the unique login details. Every time they need to search for information or make updates, they can do it themselves. You can select the employees you would like to access the system. They only need to submit their login credentials to get access to the software. Before you make a purchase, make sure the payroll processing software you are buying offers the ESS functionality. It must be customizable. Ask if the user's permission can be customized. After all, you may not want each employee of your firm to access the software. 

Though almost all types of best payroll related software have employee self-service features, it is best to check it and discuss this functionality with the vendor before making a purchase. Another important thing to consider is mobile-compatible software. Not every employee has a laptop. Even if they have access to the desktop, it is going to be uncomfortable for them to bring their laptops to work unless it is part of their job. So, make sure that the software works well on smartphones. Whether the vendor offers a mobile-compatible website or a standalone mobile application, it must feature an intuitive design and a user-friendly interface. The last thing you want is your employees to keep asking you to open the software. 

• Accounting and Time Tracking  

When you initiate a payment from your bank account for business expenses, you have to make an entry for the transaction in a separate ledger. Basically, your accountant is supposed to record these entries in the accounting books so that they can prepare the financial statement for your firm. But, imagine if you could record all these transactions automatically? Well, that is possible with the payroll process system.
Another great feature of this cloud-based solution is its ability to link the accounting software to payroll software. Every time, you make payment through this software or make any monetary updates in the solution, the same will automatically be recorded in your accounting software. Similarly, you can link your payroll solution to time-tracking software. When your employee updates their working hours for the month or the number of days they were present in the time-tracking software, the data will be recorded in the software as well. This will help you with the final wage or salary calculation according to the employee’s performance and the total working hours.

Though accounting and time tracking are two different functionalities of a payroll management solution, they both save you plenty of time in entering duplicate entries. In addition to saving you time and efforts, the integration of these solutions to your payroll can reduce the chances of manual data entry errors.

Make sure to ask your vendors if the payroll management solution can be integrated with third-party apps and software. How can you integrate these solutions? If you already have the time tracking and accounting systems installed, ask your vendor if they can help you integrate these systems with the payroll processing software. 

• Reporting

Most types of business software feature a reporting module that provides the users with a comprehensive report of their business management. The payroll management solution offers a business report that gives you a quick insight into the payroll process throughout the year. It is an important tool to learn about your payroll system as well as the latest trends. 

The software provides you with a clear view of your budget, payroll info, and taxes. This information can help businesses to improve their accounting operations. Moreover, you can use this information to improve your payroll process and ensure cost-effective business operations.