What is Payroll Software?

Introduction

Payroll software is used to compensate staff members for time worked. This solution can be bought as a standalone system or as part of a HR software platform in which it is a module. With payroll software, you can calculate paychecks from attendance tracking tools and logged work hours. The application then makes payments via paychecks or direct deposit into workers’ accounts. Plus, it calculates and withholds deductions and taxes.

All companies - big and small in any industry - that employ staff members need to provide compensation to them. Payroll needs to be done regularly and accurately, and therefore businesses need a platform that automates these workflows. Payroll software helps to save time, improves compliance, and reduces errors.

Features of Payroll Software

Employee Self-Service

This feature allows you to pass some of the payroll tasks to your employees. They can fill in their attendance and worked hours, and view their personal payroll history. The system records these details for smooth salary calculation during pay time. Plus, top platforms offer an employee portal that your staff can use to find answers to common queries without needing to contact the HR staff for the issues.

Payroll Processing

Payroll processing is an integral feature of payroll software. Most solutions provide integration capabilities which connect the system to timekeeping, leave applications, overtime pay rates, and more. This saves a lot of time as you don’t need to manually enter the payroll info for processing.

Payroll Compliance

The payroll application hosts confidential business info such as important payroll info and staff members’ personal details. However, hackers are using sophisticated methods to get access to company’s payroll databases. The need of the hour therefore is for robust payroll compliance systems that prevent loss or theft of sensitive payroll data.

Tax Computing and Filing

Payroll tools simplify the tedious task of calculating and filing taxes. They automate calculations, which minimizes the risk of human error. In addition, the platform can pre-fill tax forms using staff member’s payroll details available in the system. This eliminates the chances of submitting tax files with missing staff info.

Another advantage is automated filing ensures your employees’ and the company’s tax returns are file on time. This helps your firm to avoid incurring fines due to delayed submission.

Direct Bank Disbursement

Direct salary deposit into employees’ bank accounts is a win-win for both your staff members and HR unit. It saves your enterprise the money and time spent on issuing paper checks. Plus, you don’t have to worry about fraud cases and lost checks. Another benefit is funds are immediately available for withdrawal after disbursement.

Benefits of Payroll Software

Reduces Costs

Business owners aim to keep profits high and expenses low. They can switch from paper-based payroll management to an efficient payroll software platform to save money which they can invest to expand their business. This cost saving increases as your company grows. Leading payroll solutions allow you to include unlimited companies, employees, and payrolls as your firm adds new employees. This helps to lower expenses and enables you to strategically run your business.

Suitable Even for Lay Users

You don’t need employees who have payroll qualifications and knowledge to use payroll software. This means you can save the costs of hiring professionals for payroll management. You can simply cross-train your employees for the work.

In fact, not requiring specialized training or credentials is one of the main advantages of payroll software. Your staff can save time on laborious payroll tasks and employ it productively elsewhere.

Data Security

Your payroll files contain sensitive personal info such as bank details, Social Security Number, dates of birth, mailing addresses etc. This makes it imperative to invest in a secure payroll system that locks down this confidential data and ensures it cannot be accessed by unauthorized parties.

Saves Time

Payroll processing and management is tedious work which consumes a lot of time and effort. An effective payroll solution makes this task easier and saves your employees a lot of time which they can better spend on important business areas.

Minimizes Errors

Payroll mistakes can be expensive and therefore you need to eliminate them by using payroll software. If you underpay your employees due to a process error, staff morale could be impacted and you could even face legal consequences.

On the other hand, if you overpay your employees, your company’s working capital will be reduced and you could face complications in getting back the funds. With payroll software, you can greatly minimize the chances of human errors and make sure you make exact salary payments to your employees.