As an entrepreneur, you know that payroll operations are among the most stressful aspects of running your business.
To make payroll obligations much easier, entrepreneurs should look into choosing payroll software. Such software is made for easing payroll operations and adhering to changing payroll guidelines.
So how do you go about choosing payroll software?
This guide will help you decide on what makes the ideal payroll software for your company’s needs.
In fact, let’s start with defining your company’s needs:
What Your Company Needs
What are the specific needs for your company? For example, do you primarily work with contractors or employees? Do you have a mix of the two? You also want to take into account how many people work for your company.
You want to also consider the payroll department or the staff accountant who will be responsible for the payroll obligations. If they have experience with payroll software you can choose one that is more complex. If they haven’t, choose a payroll software that’s made for smaller businesses and is simple to use.
You should also consider adding a pay stubs generator as a complement to your software. This helps you create an accurate record for your team on how much they have earned during a pay period.
Looking at Features
What are the great features of a payroll software? The standard features that you should expect are the following:
- Automating your tax returns
- Compliance management; adhering to changing laws/regulations
- Ability to print checks through the software
- Deductions and Garnishments
- Paperless employee/contractor onboarding
- Direct deposit
- Customer Support
You want to make sure that your payroll software includes most, if not all of these above features.
If you want to choose a payroll software that’s more advanced, here are some of the advanced features you should consider:
- Managing your bank account
- Advanced customer support (chat, dedicated phone support)
- Digital signatures
- Syncing calendars
The features you choose also depends on the competency of your payroll department/staff accountant. Make sure you discuss with them beforehand on what they are comfortable with.
What’s the Cost?
You also need to consider the cost of the payroll software and its services. The initial fee will be the base fee. This will be a one-time fee or a monthly/yearly subscription fee to use the payroll software.
If you pay a subscription fee, there will likely be different pricing plans based on your company’s needs. Choose what’s best for your company but ask in advance on how easy it is to upgrade if necessary.
You want to inquire in advance if there are any additional costs to add on features or for any services. For example, is there a fee every time you make a direct deposit? What is the cost of buying checks if you decide to print checks?
Look at your budget with your accountant in order to decide the right payroll software for you.
Start Choosing Payroll Software
Now that you know the criteria for choosing payroll software, you are ready to start looking around. Make sure to share this guide with your fellow entrepreneurs.
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