Ideal payroll software should meet your business needs and help you unlock payroll efficiency. Learn essential features, budgeting tips, and compliance considerations in this comprehensive guide.

Payroll is a complex process, and nearly every business needs it. The good news is, nowadays, you don't have to be a payroll professional to process payroll in a growing business. Businesses can invest in payroll solution services to build payroll systems. One example is payroll software. 

However, there are many payroll software providers. Businesses need to be selective. Make sure to pick a payroll software system that incorporates the necessary features to meet your business needs effectively.

Things to Consider When Choosing Payroll Software

Businesses need to determine which payroll challenges are most challenging to choose payroll software. According to U.S. News & World Report, 43% of Future of Payroll Survey respondents find compliance the most difficult aspect of running payroll. 34% mention multi-jurisdictional payroll complexities and 27% describe inefficient processes as their problem. 

To make it easier for businesses to establish a clear idea of each unique challenge and need regarding payroll, try to elaborate on these few items. 

Size of the Business

First, recognize your company's needs by identifying the number of employees and independent contractors. Because different payroll processing systems have different capacities. Some are suitable for handling up to a thousand employees, while others specialize in serving smaller companies. 

The number of employees and the size of the business will also determine your business analysis requirements. For example, if you need to assign payroll costs to various departments or different cost centers in the business or if your company has international employees.

Having all these things in mind will help you choose the payroll software that can manage your business’s reporting demands. If you have a small business, you may be able to use a simpler, less expensive payroll software solution. However, if you have a large business with a complex payroll process, you will need a more robust and feature-rich solution.

Budget

Payroll software can range in price from a few hundred dollars to several thousand dollars per year. Some payroll software providers also charge a fee per employee. It is wise to research these things and set a budget beforehand to avoid overspending.

Local and Federal Regulations

Your company must have followed standard and additional payroll regulations at several levels. Look for payroll software that will help your company simplify this process and comply with a variety of regulations, including those related to taxation, labor laws, and overtime. Make sure that the software you choose is up-to-date with the latest regulations.

Other Business Systems

If you use other business systems, such as an accounting system or a time and attendance system, you will want to make sure that the payroll software you choose can integrate with them. This will help streamline your business processes and reduce errors.

Important Additional Features to Consider in Payroll Software

Business News Daily mentions that using payroll services is more likely to cost you more. But it’s still worth it. Because you can focus more on your business and allow the experts to handle and run your payroll. 

Looking at these facts, payroll software will benefit your business more if they have complete features that make the process of payroll even easier. Try looking at some of these additional features in payroll software to make you worry less. 

Employee Self-service

Some payroll software allows registered employees to access their own information or employee self-service. This supporting feature can help streamline the entire payroll process. With this feature, employees can view payment history, and do a lot of other things such as updating their personal information, requesting time off, and checking their payslips. This feature increase transparency and will be able to build employees’ trust. 

Customer Support

Some payroll software providers have 24/7 support, while others only during business hours. If you need help with payroll regularly, you will want to choose a provider with good support. Ensure the provider offers reliable customer support, such as 24/7 support or online chat.

Data Security

Your payroll data is sensitive, so it is important to choose a secure payroll software solution. The software should use encryption to protect your data and have a good security track record.

Choosing the right payroll software can be a daunting task, but it is worthwhile to take the time to do your research. By considering all of the factors listed above, you can find a solution that meets your needs and helps you run your business more efficiently.

Also Read: Payroll Specialist: Day-to-Day Job Descriptions and Essential Requirements