There are many moving parts to payroll. It can be
very complicated, from collecting time cards to withholding tax. Consider payroll
software to simplify your tasks and give you
more time for other tasks. What are the key features of a payroll system? Below
is a list of must-have features and benefits for your business.
Features that are essential for a payroll system
Finding the right payroll software for your company
can be difficult, especially if it is your first time or you need to become
more familiar with other software platforms. Do you need help with the features
that payroll management software should have? These seven features should be on
your list.
1. Simple set up
You know that time is precious as a business owner.
Why would you spend so much time setting up software? Look for payroll software
that is easy to set up.
A simplified payroll setup could be in the form:
- A
simple-to-use startup wizard - Setup
a free payroll - Capabilities
for import
Look into the setup options offered by payroll
software companies when researching them. Can they set up your payroll account?
How easy is it to open an account with them? These questions can be asked, and
customer reviews can be viewed to learn more about the setup process.
2. Tax filings and deposits that are accurate
Payroll tax filings and withholdings are one of the
biggest headaches of payroll. You can streamline your payroll by looking for
software that does all the filings and deposits.
Software that can handle calculations collects,
files, and deposits payroll taxes for you is available.
- Collects,
files, and remits federal, state, or local payroll taxes - Do
year-end W-2 or W-3 filings need to be made? - Can
guarantee accurate tax calculations, deposits, filings - Are
automatic tax updates possible?
You can check to find out what is included in the
full-service package of your payroll company. They may not charge additional
fees for filing year-end returns in some cases.
You can also choose basic payroll software to avoid
going the full-service route. Compare features, costs, reports, and other
aspects.
3. Direct deposit
Direct Deposit is the new standard in workplace
management. Many businesses no longer need cash or paper checks. Direct deposit
is a preferred method of payment for most employers. Check out your direct
deposit options when you’re looking for software.
Many payroll companies offer direct deposit
options. Here are some examples of direct deposit options:
- Timing
options (e.g., 4-day) - Additional
fees - Expedited
direct deposit options (e.g., 2-day) - Direct
deposit limits
You should also check if there are any direct
deposit options available. Ask each provider what their direct deposit fees and
costs are.
4. Payroll reports
A robust, accurate, and accessible payroll report
is another feature you should add to your ultimate wishlist.
It’s not what you want to do. Instead of spending
hours gathering information and putting together reports, look for software
that can provide a wide range of reports you can access in just a few clicks.
You should check to see if your payroll provider
offers these reports:
- Payroll
details - Register
for Payroll - Check
payment detail - Payroll
tax liabilities - Forms
W-2, W-3 - Form
940 - Form
941
You should also ensure that you have access to
reports if you use a full-service payroll company that handles filings and
taxes.
- Collection
of taxes - Tax
deposits - Filing
taxes
You can also break down reports by the employee.
Find out if you can test the reports before making any changes.
5. Integration options
There are many things you need to do in addition to
managing payroll. Payroll software must seamlessly integrate with other software
and platforms.
These are some of the things you might want to
incorporate with:
- Software
for accounting - Software
for time and attendance - Software
for HR - Workers’
compensation
Ask every payroll company what platforms they
integrate with and whether there are additional costs. You should also see what
other software they offer besides payroll. This will allow you to keep all your
software under one login and all your information in one place.
6. Self-service for employees
A portal for employee self-service is another
feature that payroll software should have (bonus if free!). Employee
self-service (ESS) allows employees to view pay slips and review their
benefits.
Employees may be able to view their W-2s at the end
of the year, track their time cards, and print their payroll information (e.g.,
year-to-date).
When looking for software, find out if they offer
portals, the costs, and their capabilities.
7. Top-notch support
Excellent support is essential when purchasing
payroll software, especially for those new to the industry.
Consider things like the hours of operation, the
location of the support team, and how to contact them (email, phone, etc.) when
looking into support. Find out if support is free or if you have to pay.
Review the customer’s experiences with the support
staff to find out. Changing your mind may be a good idea if you find more
negative than positive comments about the company’s customer support.
Call them to get an idea of their support level and
ask questions about payroll
software. You can see how easy it is to reach
a representative and their expertise level.