Automated systems are helping the HR industry a lot, and there is no turning back. Technology greatly assists managers in their routine tasks to save them considerable time. And now, this is the time when your business needs HR solutions also. They optimize each process and help you get the most out of resources. Still, you might be thinking of automating just some processes rather than spending a huge amount on a full suite of HR software, and it is correct, though.
Payroll is one of the most complex and time-consuming processes of HR, and you should consider automating it first. As it is directly linked with employees’ job satisfaction, an accurate payroll calculation is necessary to keep the staff members hooked to the organization. It ultimately contributes to the business’s long-term success.
You should choose the payroll system carefully, as it is a crucial investment for your business and will affect expenses. Therefore, before purchasing software, you should ensure that the vendor is offering the below-mentioned features:
Key Features Your Payroll Software Must Have
Automated Salary Calculations
The most significant reason you are subscribing to payroll software is to simplify tedious calculations and eliminate complications. You should check that the potential system provides accurate salary calculations from the given data. And also, keeping the salary records is necessary. So, your software should maintain the records of past payroll cycles.
Some vendors even allow you to integrate your attendance system with their software to generate salaries based on the employees’ attendance data. Also, linking performance metrics can help to increase accuracy. Overall, you must ensure that the software is saving you time in calculating payments and that you don’t have to recheck them.
Paper checks and cash are old-school methods of depositing salaries. Nowadays, direct bank account transfers are much more popular and are easy for employers. As a result, your company can save thousands each year in supply and processing costs, and your staff also doesn’t have to worry about lost paychecks and fraud. By reducing paperwork and checks, the environment gets benefitted also.
The payroll software notes employees’ bank account details and integrates them with third-party payment services. Some providers even allow paying directly from the system, so the managers can save the costs of using other payment services.
Tax Calculations And Filings
Staying compliant with tax laws is also crucial. But it often invites complications and consumes much time. According to Fit Small Business, around 70% of businesses consider payroll taxes a significant burden. The constantly changing regulations make it even more difficult to comply. Therefore, your payroll software should handle the taxation procedures on your behalf. Every system provider offers different levels of assistance in tax management. Some software may calculate the amount based on salaries and tax rates, and some may even let you file and pay taxes.
With an automated system, the taxes are filed and paid within the deadline. This way, the risk of paying huge penalties gets reduced. The software automatically deducts taxes at the time of payday and updates the tax tables quarterly or annually. It files taxes and makes payments to save time from administrative tasks. It even helps you stay on top of ever-changing laws and regulations by constantly updating them in the system.
Some software vendors also let you manage employee compensations and benefits and allow the staff to declare their investments.
Among all the features, customization is the most valuable and must-have one. Your system should be flexible enough to manage the payroll process according to the changing needs. In the future, you might change your employees’ salary structures and benefits. In that scenario, you will also need to make changes in the system. So, efficient payroll software allows you to set and edit every detail at your convenience.
Customization levels differ from one system to another. Some software providers allow editing tables and charts for better preparation of reports. Some even let you edit the reports, screens, and fields to organize everything at the manager’s wish. Many vendors offer fully customizable modules where you can edit any details and fields. You can set the pay structure according to the business needs and determine calculation formulas. You can even print the company’s logo on reports and checks.
The payroll software will save you much time from repetitive tasks, so you can focus on improving accuracy and ultimately, the employee’s job satisfaction. But it is necessary to ensure that your efforts are paying you back. The software also helps in that aspect. Reporting capabilities help your business stay on top of every piece of information and data. It collects different types of details, analyzes them, and outlines trends so that you can make necessary changes in the policies.
Reports provide you with a comprehensive overview of your budget, salary payments, and other details. You can get instant data on budget versus actual spending, tax summaries, and time-off calculations. These reports should be used by the management to allocate/restrict resources, manage overtime, and prepare the budget for the future.
Below are some prominent reports you must check in a payroll system:
- Wages report
- Audit report
- Salary register
- Payroll tax liabilities
- Compensation and overtime report
- PTO report
As said earlier, accurate salary generation is necessary to keep the employees’ job satisfaction levels higher. And it can be easily done with payroll software. The system you will choose depends on the features you require. The above-mentioned features are crucial and offered by almost every vendor, so you should go through the list. It will help you select the best system. However, only subscribing to software will not work; it is essential to know how to optimize the payroll system and get the most out of your investment. For that, you will need to invest in your payroll executives’ training and education. Also, you should compare your previous process and outcomes with the automated process and its results. This way, you can easily make strategies and necessary changes in your payroll structure.