What is Payroll Software?
The term payroll software means a computer software that is designed for employees of the company. This software takes care of the payments that needs to be made towards the employees.
As we all are aware that there are various taxes that are deducted by a company, payroll software takes care of all such deductions. It helps in each aspect of employee payments.
Payroll software stores every detail of the employees. For instance, hours worked, pay per hour, pay type, etc. With the help of this information, it calculates the gross income and deductions that are to be made.
What are the ways of employee payments in an organization?
Well, basically there are two ways: First one is to outsource the entire payroll management to a service provider company. Second is to have an in-house human resource team who will ensure all the aspects of payroll management.
The most important task for a company is to decide which way to opt for. In-house team will need all the resources. Eventually, if a company can make investment, it can always opt for the in-house option. Whereas, if the company doesn’t have all available resources or doesn’t want to get a team, outsourcing can be the best option in this case.
Why Payroll Software Needed for Large as well as in Small Business?
Payroll software is beneficial for every size of the business. There are numerous payroll software for small business. The benefit for small business is more when compared to large organizations. This is because there are limited number of employees in small organizations.
When there are limited employees, a wide range of software options are available. Also, the cost of payroll software for small business is less in comparison to large organizations.
The plans of payroll software depend upon the size of the business and number of employees. There are various benefits of payroll software for large and in small business, they are:
Increased Accuracy : Softwares are made to lessen human efforts. Payroll software increases the accuracy of carrying out employee payments and calculations.
Increased employee productivity : With the use of payroll software, employees enter their leaves manually. The time taken by administrator in such case is lower. Hence, time saved by softwares may be utilized elsewhere which can have a positive impact on productivity.
Reduced human error : Humans make mistakes and this is a known fact. With the use of payroll software, human errors can be reduced to a large extent.
What does a payroll management software do?
Payroll softwares are developed to help human resource and reduce their work load. These softwares use manual data entered by individual employees regarding their leaves and other details.
Calculations Made Easy : Payroll software calculates the gross income of employees with the help of the data entered by them. Payroll software calculates the income correctly with accuracy.
Time Taken : The time taken to calculate the salary by these type of softwares is minimum. The major job is done by the software itself without any human inputs.
Tax Calculations : Along with the gross income calculations, it is accurate in determining the taxes. Payroll softwares calculate the taxes payable by each employee efficiently. The payment towards taxes has been made easy with accurate figures.
Access to Employee Data : Payroll management software also helps in accessing employee data in no time. Unlike the traditional method in which companies used to store hard copies of the employee data, payroll software stores it as a soft copy. The access to this data is very simple where one can search for an employee data by just entering the employee name.
Customized Report : Another positive aspect of payroll management software is it enables customized reports. Whether the company require historic data, benefits received by the employee, pay slips, etc. Payroll software management can generate recurring reports effectively.
Transparency : With the use of payroll management systems, transparency between employee and management has increased to a great extent. The increased transparency helps in avoiding disputes in cases like leaves, expenditures, adjustments, overtime, etc.
List of Best Payroll Software for Small Business
The definition of best online payroll services for small business varies for each organization. It completely depends upon various factors of a business. The needs of businesses are different, and this is why there are various platforms that may help the company to achieve their payroll goal.
Some of the best online payroll services for small business are:
- Intuit Payroll
- Zoho Books
- Sage Intacct
- Dayforce HCM
- Square Payroll
- Patriot Payroll
- Kronos Workforce Ready
Features of Payroll Software
Payroll systems have made their mark in the entire industry. Whatever the business may be, payroll management systems are widely used in all sectors.
The increased importance of best payroll system for small business have increased due to its overwhelming features. Let us have a brief look at the features below:
Country Specific : The government rules and tax slabs are different n=in every country, Payroll software takes care of the country specifications by adjusting the settings.
Self-Service Feature : The self-service feature of the software helps the employees to view and review their own data. This feature helps in building transparency between employees – management and avoid disputes between them.
Time and Attendance Tracking : Standard payroll systems record all the information regarding time spent by an employee. This helps in the calculation of gross income of the entire human resource of the organization.
Leave Management : Payroll management system records and calculates salaries by taking leaves into account. It helps in escaping chaos or disputes regarding leaves.
Income Tax and Deductions : This feature develops with the software. Means, the latest version or latest software also helps in calculating TDS and provide insights on tax saving investment.
The main task for a business is to ascertain best payroll system for small business or a large business, whatever the case may be. Ascertaining best software that matches the requirements reduces major work load of the company.