Payroll management software can provide an cost-effective solution to your payroll management woes. The truth is, dealing with payroll management day in and day out can become mundane and time consuming.
And businesses of any size, especially small businesses, are doing themselves a disservice and could put their business at risk by not having adequate payroll software. Here are some considerations you should look for when assessing payroll management programs.
What Should You Look For in Payroll Management Software?
According to the American Payroll Association (APA), companies who use automation in their payroll processing, reduce payroll costs by as much as 80 percent. A large percentage of that reduction is attributed to reducing errors in invoices and checks that are issued. Another study by The Hackett Group found that 90 percent of companies now use paperless payroll distribution systems.
With the advent of direct deposit and payment cards, a majority of the labor force is embracing paperless payroll and are participating in the self-service features by entering their own personal information into the automated payroll systems.
Businesses are finding that, the best way to manage payroll and comply with state and federal laws is to make full use of robust payroll management software. Stricter financial regulations, such as the Sarbanes-Oxley Act of 2003, are making companies more aware of the need to protect and help their employees.
Yet, learning and complying with the vast number of regulations can also have a detrimental effect on companies, as it seems that there are new regulations every year, or adjustments to existing laws. The time involved is costly and mistakes can be even costlier. And smaller businesses often have their payroll staff working in multiple roles, leaving little time for staying abreast of the ever-changing compliance landscape.
3. Ease of Use
While you'll need to invest in a powerful software program to accurately manage payroll and make sure you stay compliant with regulations, but you shouldn't have to be an IT expert have to run the program. When searching for a program, you need to look for software that is user-friendly and consists of simple plug and play installation.
However, depending on the size of your organization, your software needs will involve installation that is a little more complicated. But even the most robust and full-featured payroll management software should be easy to use.
Look for professional guidance
You have enough projects to deal with and buying and implementing a payroll management system should be done with reliable guidance. However, that guidance should come from a payroll management services company that understands small businesses.
In addition, you want to look for a company that has value-added services that can you can make use of as your business grows and outsourcing becomes your next option. Learning to manage payroll through automation can have a steep learning curve, but the payoffs are exponential once you master the software with the help of a professional payroll management company.