Find out more about Payroll Management Software
What is Payroll Management Software?
Payroll management software is offered by HR technology vendors, but it can also be part of an ERP system. This software is used to perform a lot of tasks, such as calculating employees’ salaries, cutting deductions, depositing the salary directly into staff members’ bank accounts, producing tax forms and payslips and more. The app helps reduce manual errors as well as cycle times. Setting up this software and getting started with it will also be very easy. Moreover, payroll management software offers benefits such as secure financial transactions, efficient handling of employee data, and getting detailed reports on staff payroll. You can learn more about this software by reading about popular systems in this category. We especially recommend Xero which has been rated as the best in this group.
Most Popular Payroll Management Software
Best Payroll Management Software
How To Choose The Best Payroll Management Software
Payroll management is a critical aspect for all companies. Firms can either outsource the task to a third-party or manage payroll in-house. If you decide on the latter, there are numerous online payroll management applications available to help you. This can make it a difficult task to select an appropriate solution for your needs. For your convenience, we have prepared this buyer’s guide which will assist you understand the vendor landscape better, and pick out the best Payroll Management software for enterprises.
Get to know each product with free trial
A good course of action is to sign up for at least a few free trials and basic unpaid plans plans from the vendors that are popular. With that method you will have the opportunity to test the important elements and you will get a good overview of the capabilities of each app. The best thing to do is to try software tools that currently have the highest results in our SmartScore and Customer Satisfaction Rating in the Accounting and Finance software category and choose the best Payroll Management software for your business: Xero reviews, AccountEdge, KashFlow, and PaymentEvolution.
This section will help you determine which kind of payroll software is right for you depending on the type of business you’re running:
- Small businesses – These firms look to streamline their HR process with a dedicated payroll solution that is easy on their budget. Example vendors are ADP and Triton HR.
- Medium-sized companies – These buyers look for more than basic payroll functionality. They want additional features like recruitment, attendance tracking, scheduling, workforce management, etc. and therefore look to invest in a comprehensive HR management solution. Example vendors are Vista HRMS, NuViewHR, Kronos, ADP, and Ascentis.
- Large enterprises – These companies typically invest in an enterprise resource planning (ERP) solution that includes payroll management. They wish to integrate payroll with other HR functions, as well as with accounting and related departments. Example vendors are Lawson HR, Ominprise HRM, Sage, and Epicor HR.
What are Examples of Payroll Management Software?
- Xero: An online accounting app for businesses from all scales and industries, but also individual accountants and bookkeepers. It focuses on collaboration, and keeps teams connected wherever they are.
- Intuit Payroll: A powerful payroll solution for small business hat handles both payroll and tax processes timely and efficiently.
- Paylocity: Advanced payroll and HR suite designed for the lower end of the SMB market. Its highlights are self-service features and advanced reporting.
- SurePayroll: A comprehensive online payroll solution which manages payrolls quickly and accurately, and calculates payroll taxes in seconds.
- AccountEdge: A small business solution for Mac and Windows which runs accurate reports on all areas of your business.
Types of Payroll Management Software
One of the things that makes choosing payroll management software so difficult is the variety of programs that can be used for the purpose. They range all the way from basic tool suites to ultra costly and accurate programs. The list of features can also be categorization criteria, as certain programs do nothing but generate audit reports, while others are more robust and they allow users to track tax code changes and to forecast them, and even do some custom branding. The basic division criterion is deployment, depending on which you can choose between:
- On-premise payroll management systems. These are covered with a single license, and are hosted on the client’s local server. They qualify as the most expensive ones, due the fact that they require complex setup and occasionally some hardware installation.
- Software-as-a-service (SaaS) payroll management systems. These are usually paid per month, and are hosted on the vendor’s server. The business owner is not responsible for installation, updating, and maintenance.
- Cloud-hosted payroll management systems. Most of these offer free basic plans, and qualify as the most affordable ones due to their universal access and the fact that the client doesn’t need to update them or to pay for maintenance.
Key Features of Payroll Management Software
The following features are essential for payroll software:
- Compensation. What you’d generally expect from a payroll manager is to process and distribute paychecks, but the scale of these programs is much broader. One of their key features is compensation, which means they can do business salary management and keep track of leave/bonus systems and track salary transfer.
- Benefits. Payroll management systems are enabled to track performance, and to reward it. Sick leaves, absences, and overtime can be calculated easily, meaning that no employee will be discriminated in any way. Later on, the system administers salaries and tax deductions, and calculates the benefits.
- Employee records. Payroll management systems allow to summarize and update employee information in individual records, available to each department to make the most of your human resource. Together with personal data, these records contain history of employment, and can be customized to add information you think is relevant.
- Time-off tracking. Once again, payroll management systems track the sick leaves, vacation accrual, and other absences of your employees, and calculate their salaries considering this information. Automating time-off management and approval ensures there will be no mistakes when balancing the changes with your payroll system.
- Tax filings. The systems can help you prepare detailed tax filings, allowing you to schedule, pay, balance, and file payroll taxes all on the same platform. To make matters even better, advanced payroll management systems store this information in a comprehensive, easy-to-browse database.
- Reports. What is really critical to every payroll management system is reporting, where you should expect your system to perform Direct deposit reports, Online payment reports, Annual reports, etc. For the purpose, the toll is supposed to contain a robust suite of analytic tools, in particular tables, graphs, and charts.
Benefits of Payroll Management Software
Payroll software offers plenty of benefits such as saving time and money, and eliminating compliance risks.
- Saving time – You can save plenty of time and in turn money by purchasing a good quality payroll software. These applications are intuitively designed, which means your HR employees can easily learn to operate them. A manufacturing company found that it was able to drastically reduce the time needed for payroll management by using ADP’s solution. It used to spend two days to perform the payroll tasks manually, but the application cut down the time to just half a morning.
- Reducing risk and increasing accuracy – Payroll software is a boon for companies looking to comply with tax requirements and filing tax reports. Manual payroll processing can lead to human errors which can significantly affect a company. In fact, companies face the risk of penalties if they do not comply properly with tax regulations. Payroll management solutions can complete tax reports and filings for your company, and even remind you about their due dates. Plus, they also perform the daunting task of tracking changes in tax code.
- Generating detailed reports – Payroll software can help you track data over time and easily generate insightful reports for auditors, accountants, and internal decision makers. Examples of such reports include employee participation in 401k plans, annual tax remittances, and summaries of quarterly expenses.
List of Payroll Management Software Companies
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An overview of what kind of devices and operating systems are supported by the listed B2B solutions in the Accounting & Finance Software category, including mobile platforms and web-based solutions.
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