How to Choose the Right Payroll Software for Your Company

calendar December 4, 2019

Payroll management is a difficult thing. A simple error can have profound effects down the line. That is why it is necessary for a business to have a solution that can assist them in ensuring that numbers are accurate. On top of that, they have to make sure that employees receive their funds on time.

When errors occur, businesses receive fines from the IRS that amount to billions of dollars. Human Resources Today also shares that 82 million employees or 54% of the U.S. workforce are affected by those payroll-related mistakes.

payroll problems

Those blunders or inaccuracies are something that a payroll software can fix. Aside from that, such a system integrates a wide range of tools that make payroll management seamless. But finding the right one can be challenging since there are many options in the market, which is why we prepared an article that can help you in your selection.

1.  Assess your needs and budget

Before searching the Internet for the right online payroll software for your organization, you have to evaluate your payroll needs first. This is an important step since this will serve as your guideline for choosing a platform.

One of the things you have to think about is the number of users you need the application to support. That is because there are vendors whose packages limit the number of administrators or power users.

You also have to ascertain whether a self-service portal could be helpful to your employees, especially to the HR and payroll departments. With this feature, you can empower your workforce to check and edit their information by themselves.

There may be other tools that you have to look for in a payroll solution as well depending on whether your organization needs them. As such, you will need to create a checklist against the feature list of your shortlisted vendors. Thus, it will be easier for you to narrow down your list further and choose a software provider finally.

2. Confirm the availability of funds transfer to pay cards

A pay card is a convenient and cost-effective way for employers to send employees their pay. All you have to do is transfer funds to each of your worker’s accounts when payday rolls in. But for this to be seamless on your end, you have to check whether an HR payroll software supports direct funds transfer. This way, there is no need for the administrator or power user to switch browsers or applications to complete the action.

Additionally, payroll cards mean you do not have to set up bank accounts for your employees or gather their bank account details. According to the Federal Deposit Insurance Corporation, 6.5% of American households were unbanked. That is still a sizeable number though the institution stated that this is a significant difference compared with the 7% in 2015.

Thus, ordering pay cards and enrolling them in your system for funds transfer is easier for both your company and your employees.

3. Consider security

In a report by Symantec, we see enterprise ransomware attacks rose to 12%, web attacks went up by 56%, and attack groups using destructing malware increased by 25%. These are alarming numbers that you have to think about when choosing a cloud based payroll software. Such software can be vulnerable to cybercriminals when not configured properly.

Apart from that, you have to think about making sure that your software is safe from internal attacks. These can occur when role-based access permissions are weak or when a set of rights are given to the wrong person.

To prevent any kind of attack or infiltration from happening, you have to scrutinize your vendor’s security controls. You will have to look into how rights are controlled and how many access levels you can set up.

But that is not all there is to security. There is also the need to secure your data from disasters and system crashes. For this, certified data centers where vendors store your data are your best bet against information loss.

4. Scrutinize the integration options

Your payroll processes are tightly knitted with your accounting and finance management. However, accounting and finance tools may be limited or not available with your chosen payroll system. To remedy that, you need to integrate the software with third-party solutions you are using. That is why you have to check out whether the application you are considering offers integration options.

Techopedia explains that system integration allows the expansion of functionalities of a system. Commonly, this happens through the exchange of data between different platforms. Since payroll, accounting, and finance management can be connected, you can be sure that numbers are accurate. This way, employees get the right amount and your company coffers remain healthy.

5. Check the mobile adaptability

The Global Workplace Analytics says that 4.7 million employees now work from home at least half the time. Apart from that, there are employees who regularly work from the field or on-the-go. With this, it is crucial that your chosen payroll software has a mobile application or adapts well to mobile screens. As such, it will not be difficult for mobile employees to find the tools and functions they need to work with.

Making payroll work for everyone

Payroll systems are generally seen as a solution to be used by HR and payroll professionals. While it is true that a payroll application makes their calculations easier, employees in other departments have a good use for it, too. For example, if your selected platform has a self-service portal, they can keep track of their time as well as check their taxes and other contributions on their own. This way, you can empower your entire workforce when it comes to payroll.