Payroll software, at its best, may significantly improve the payroll process by decreasing errors, speeding data entry, and reducing stress for all parties involved. On the other hand, the inappropriate payroll provider will almost certainly cause more problems than it solves. You've come to the perfect place whether you're looking to upgrade from a manual bookkeeping method or find new payroll software that better matches your company's demands. We'll work with you to figure out what your current payroll solution is missing, list the most critical features to search for, and then guide you through the process of selecting a payroll service that will be the best fit (and experience) for you and your team as your company expands.
What are the Benefits of Using a New Payroll Service?
It's easy to put off switching from one established process to a new one, especially when the function is as important as payroll. Any payroll administrator might be tempted to leave well enough alone due to the concern of creating issues paired with the tremendous overhead needed in making the changeover. Unfortunately, by the time "good enough" becomes "enough" the inefficiencies, inaccuracies, and even IRS penalties that might result from errors will have wreaked havoc on more than your culture, employer brand, and employee satisfaction programs. A faulty payroll system confines administrators in a time-consuming, inefficient cycle that stifles individual and organizational growth.
Setting oneself free with a new, efficient procedure entails reallocating time to more purposeful, meaningful work. That's why we're here to help you bite the bullet, rip off the band-aid, or pull the ripcord - pick your favorite metaphor - and figure out what's wrong so you can come up with a solution that doesn't repeat prior mistakes.
The Top 8 Reasons to Switch Payroll Services
We asked respondents to rate the key points of their unhappiness with their current payroll system in a recent HRMantra survey:
1. Poor customer service was cited by 78 percent of respondents as the source of their dissatisfaction.
2. Lack of integration: 68 percent expressed dissatisfaction with their payroll system's lack of integration with their HRIS.
3. 64 percent wished their current service had a more user-friendly interface.
4. Employee experience: 61 percent of respondents wished for a better employee experience.
5. 50 percent of respondents stated their present service was lacking in functionality.
6. Processes that take too long: 43% said they wish the payroll process took less time.
Too expensive: 36% believed they were overpaying for their payroll service.
Payroll inaccuracies: 18 percent were concerned about the frequency of payroll distinctions.
Are you unsure where you stand on the payroll dissatisfaction scale? The following two tasks will provide you with a useful foundation and background from which to build your ideal payroll service profile:
Rank these items in order of importance based on your personal experience (omit those that don't pertain to you). Add any more pertinent annoyances that aren't already on the list. As you choose a replacement solution, this will build a checklist of items to address specifically.
Consider the cost of payroll for your present employee headcount (in both cash and employee hours), then figure that cost based on your company's growth estimates and goals for the next few years. As you run the figures on other prospective solutions, this will serve as a benchmark price point.
What Payroll Solutions Do You Have?
When it comes to payroll management, there are four basic options:
1. Investing in payroll software from a third party
2. Using a Professional employer organization (PEO)
3. Creating a self-contained solution
4. Employing the services of a local or national accounting firm.
Which Payroll Solution Is Most Appropriate for Your Company's Size?
PEOs are most likely to be used by start-up companies. The PEO business currently services at least 15% of all U.S. employers with a headcount of 10 to 99 employees, according to data from the National Association for Professional Employer Organizations (NAPEO).
Although PEOs are an expensive choice, the appeal is in removing the burden of HR and payroll management from the shoulders of a new or small business owner who already has a lot on his or her plate.
What Payroll Solution Is Most Appropriate for Your Business?
The features and functionality you require from your payroll system will be influenced by the particular aspects of your sector, such as how people in your industry are paid or their employee type.
The payroll solution you choose should be able to handle the following, depending on your industry:
1. Employees who are paid by the hour
2. Workers who belong to a union
3. Tip-based earnings
4. Commissions
5. Bonuses
6. Various pay scales
7. Differential shifts
What Should a Reliable Payroll Service Include?
Payroll software is a natural next step for most expanding businesses, but what does the ideal payroll solution look like for your business?
Payroll software should, at the very least, be a dependable resource for these three essential functions:
1. Employees are paid on time and accurately.
2. Timely and accurate payment of payroll taxes
3. Payroll tax forms should be filed
However, depending on your circumstances, there are many more elements and features that might make your life even easier. Here are some things to think about while you analyze your options:
Geographic Reach:
If you have employees in multiple states or even outside the India, you need to know right away if the software is capable of processing payroll for each location.
Security:
What are the security protocols and credentials used by the provider? Is it safe to trust them with your payroll information? They should be SOC 2 compliant and conduct security audits regularly.
Compliance:
It is the employer's responsibility to be aware of and comply with state wage, hour, and other legal standards, regardless of where their employees live. Check that the provider can offer you the reporting, formats, and calculations you require to remain compliant.
Functionality and features:
1. Detailed reporting
2. Accessibility on mobile devices
3. Flexibility in pay schedules
4. Various types of pay (hourly, by unit, etc.)
5. Various payment options (direct deposit, checks, pay cards)
6. Collection, garnishment, and remittance
7. Adjustments in pay (bonuses, recurring and one-time reimbursements)
8. Automatic tax filing should be included in any payroll software worth your time. Determine whether the program handles quarterly and year-end tax deadlines, as well as the distribution of employee W2s and contractor 1099s.
Customer service:
Nothing is more vital than obtaining a competent, courteous professional on the phone as soon as possible when it comes to payroll questions. Inquire about the provider's support model and availability.
Conclusion:
Finally, once you've chosen your ideal answer, you'll sign a contract that spells out clear mutual expectations, notify your present provider of the impending move, and arrange for the transfer of any necessary clerical information (i.e., local and state tax ID numbers, EIN, payroll schedule, etc.). Plan on running payroll on both the new and old systems at least once to ensure that your results are consistent, and make the changeover around the start of the year or the conclusion of a quarter to ensure a smooth transition.