Every business that has employees requires a payroll system to pay its employees. Counting payroll is a cumbersome process that involves data from multiple departments with complex calculations. It is impossible to do it manually for medium or large enterprises.
A payroll system can automate this whole complicated process more manageable. Nowadays, most companies are using advanced payroll software for payroll management. This article will serve as a thorough guide for selecting a payroll system for your company.
A payroll system is a software that handles payroll management tasks. It manages salary calculations and tax calculations, and deductions on those salaries. Some advanced systems also support income tax fillings. The system also manages the delivery of payments and cheques to the employees and relevant tax authorities.
Choosing Payroll System:
Choosing a payroll system is a very significant matter for an organization. It is selected based on careful considerations regarding business size, the number of employees and the legal compliances of the state. Here are some things to keep in mind while selecting a payroll system.
Advanced Payroll Processing:
Payroll systems need to calculate employee wages, overtime, medical reimbursements, taxes, social securities, time off and other benefits. The system should also be programmable for additional bonuses, commissions, and miscellaneous payments. Also, look out for the aggregate bonus tax calculator feature in the selected tool.
Accessibility to Employees:
The payroll system should be accessible to employees. They should be able to view their tax deductions, yearly salaries, and other balances. The software should also have an easy and user-friendly interface so employees from all backgrounds can easily access them.
The payroll system should be able to withhold taxes and file yearly returns on behalf of employees to government taxation authorities. Taxation should be automated, and the program should keep a clear record of all transactions for the employer to review.
A sound payroll system should also contain features to provide regular reports to relevant authorities on the payment of salaries, bonuses, time offs and commissions. An intelligent system can identify patterns in those payments, providing data relating to gender or racial inequalities and favoritism, which otherwise will be difficult to track.
One of the main factors in choosing a payroll system is affordability. These systems came in a variety of prices based on specifications and features. It is your job to identify which parts you need and the budget you are willing to allocate for the system.
It would be best to look for a payroll system that provides support when needed. The reputed system providers often also offer dedicated customer support staff as contact between the user and the company.
Payroll software should be able to integrate with existing systems in your organization. The companies use software for record-keeping, HR, attendance and accounting purposes. The system should be able to sync with all those systems, so once data is updated in one system, it is recorded in all others.
The payroll system should keep up with changing work dynamics. The software should be available for mobile employees on smartphones and websites. It should also provide all relevant information, such as payment history, deductions and commissions, all in a single place.
The payroll system should contain sufficient security measures to keep cyber security threats at bay. Employees’ payroll data are prone to hacking attacks due to their sensitive nature. So, the system should provide complete security against all cyber-attacks.
The payroll system should provide regular employee notifications about salary credits, deductions and bonuses. The notifications could be based on emails or other social mediums, such as messages on social media platforms.
The software should automatically provide information on newly inducted employees to relevant government agencies mandated to collect data by law. It will save the company from legal complexities regarding employment and social security fraud.
A payroll system is needed for every organization nowadays. It helps you minimize losses and provide better tracking of your spending. A wide range of payroll systems is available with varying budgets and features. You should consider all your legal, budgetary and organizational requirements while selecting the system. Ideally, you should select a reliable Patriot software alternative. You can trust Netchex in this regard. It works equally well for small and large organizations and comes with a host of advanced features. The best part about this tool is that it can be customized. Give it a try!