Using Payroll Software for Payroll Process Management
In our previous two postings, we had come to know about payroll basics and payroll services. We had explored it all in detail. Moving ahead with the same series, today we are going to discuss about Payroll Software. I am sure most of us are aware of the same. Today we will see what exactly is a payroll software and is it a better choice in comparison to outsourced payroll services.
A payroll software is a standalone application or a system integrated with any HRMS application where payroll calculations are carried out. A typical payroll software takes little input from the employer, just employee wage information and hours and eventually comes up with required calculations and withholdings. The calculations are updated with the change in time tax laws. A Payroll software can also fill employee’s tax forms and set a reminder for them to file the same at anytime later. Using a payroll software, one can also make all necessary deductions from the paycheck as required. In a payroll software, you also need to personally enter all pertinent information. For example, if you offer your employees health insurance, you need to provide all of the information about the insurance provider so the software can not only withhold premiums from each check, but write checks to the insurance company when they’re due.
But inspite of all offerings, a payroll software does have limitations like a paycheck generated via payroll software still needs to be physically signed and printed by the employer before its sent to the employees. The same is required with employee tax forms which is invalid without employer’s signature. Anyways in comparison to outsourced payroll services, a payroll software is a huge time-saver as it enables in easier handling of complicated withholdings and constantly changing tax laws. The best advantage of course is to have your payroll data at one place.
Payroll Services or Payroll Software – it is never easy to decide over the same but as per our observations, Payroll Software is a better alternative for companies having an employee strength between 10-50. Nowadays, Payroll software are becoming web based and so it is much more easier to manage payroll process from any web enabled computer. As compared to payroll services, a payroll software is quite cheap but one shouldn’t forget the fact that a payroll software cannot complete every task. There is still a requirement for manual interference with the same whereas there is nothing like the same with outsourced payroll services and is therefore a better choice for larger companies having an employee strength over 100. Outsourced Payroll services are handled by dedicated professionals and so there is nothing much to worry about.
No matter whatever type of payroll system is finalized, there are still some important criteria to be considered. We will be seeing the same in our next post. Let me know if you have any queries. Mail it to – firstname.lastname@example.org