Posts tagged payroll software
Having a payroll system of any type is not enough. A typical payroll system may fit well with your budget and complete most of your payroll tasks. Most of the organizations having payroll system or planning to purchase the same may be faced with certain issues like compatibility, security, etc…
On the basis of above concerns, below is list of 5 most important things to be considered while choosing a payroll system for any organization -
No doubt, security is the single biggest concern with any payroll system. Say for example if you are using any payroll software, do you password protect it to restrict access? Do you define privileges to access the same? In case if are using any payroll service, are you aware of the data storage? What if system crashes? Is there any disaster recovery plan for the same ?
This is another major concern with any payroll software. A typical payroll software may or may not be compatible with any existing software which you may be using in your organization. It might not work well with your other business systems, like accounting and HR. Chances of integration with your existing business management software might be less or NIL. In such cases, organizations may consider purchasing all of their HR and Financial software from the same vendor thus enabling better integration between the systems. Same goes with any outsourced payroll service where you should know if it is easy for them to communicate with your in-house accountants and HR personnel.
Ratings always help and if it is from trusted names like Standard & Poor’s or Moody’s then it does work work like anything. Software from a well known brand with a solid reputation should be preferred over any other brand.
A payroll software should be flexible in the sense, it should be able to meet the present as well as future needs of an organization. A payroll software must grow with the growing business.
This is another important thing to consider. We have seen in our earlier postings that a payroll software is not capable of accomplishing all tasks related to payroll. Manual interference is required at some point of time. Incase if you do not want to manage most of the things manually, will your payroll service be able to request a report, view payment histories and make real-time changes to employee wage information when necessary…!
So, here you go again with some vital things to consider with any payroll system. Anything ignored here may result in an error prone system which can lead to reduced productivity and thus hamper organizational growth in the long run. I am sure your organization doesn’t want the same to happen at any cost..finally, it is your decision..!
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 – email@example.com
Of all the organizational activities being carried out in an organization, managing payroll looks to be a highly complicated thing. To put it simply, Payroll is a process by which an employee is paid by an employer for the work he/she carries out in a company or an organization. Payroll is not required if you have your own business without any employee. But once you have your own employees as your business grows, you have to make sure that your employees are paid on time and the correct amount. Delay in the same process may lower down the morale of an employee and chances of them becoming less productive increases. Also even if everything happens on time but with some errors then it may not be long before you see your employees quit your organization…!
Now, a payroll is generally considered to be any an easy process from the employees point of view. But in reality it isn’t. Lot many things are involved in the same, making it look more and more complex. Other than being a look easy process to deliver pay check, an efficient payroll involves certain very important activities like error free deduction of proper taxes from each paycheck and making it sure that those funds are paid to the right government agency at the right time. Complicated tax forms must be filled out and filed on an annually, quarterly, sometimes even weekly basis. Missed deadlines and improper tax filings can result in steep fines and even jail time. These are some of the reasons why having an efficient payroll is a big concern for any organization.
Ofcourse, you can manage it all but when you are small business owner, you can find yourself stuck with lot many tasks while handling a payroll and this is more or less likely to divert your attention from other important activities inside organizations like product development, customer service and other important business tasks. Surely, you don’t want this to happen at any cost. And therefore it is always a better to look for the alternatives which in this case would be either an outsourced payroll service or computerized payroll software.
We will be seeing more on outsourced payroll service and payroll software in the coming posts. Till then, if you have any query on the same, please let us know by mailing here – firstname.lastname@example.org