When it comes to running a business, one of the hardest tasks to tackle is running payroll. Many small business owners don’t understand the tools needed or the amount of taxes to calculate. Fortunately, there are software solutions that can help businesses not only run payroll but help your business thrive! If you’re asking yourself “Do I need payroll software for my business?” Rest assured the answer is yes!

What is Payroll Software: Payroll software is a computer application that enables you to run payroll at faster rates and automate parts of the payroll process.

Reasons Why Businesses Should Consider Using Payroll Software

Here are some of the best reasons a business should use payroll software.

Time-Saving Benefits

Are you looking to automate your payroll processes? Payroll software can help! Most of the data needed to run payroll can be automated. You can import information like time and attendance into the system. From there, your software can calculate wages for payroll for you. Payroll software can also have reminders and automation tools so that you never miss a deadline.

Enhanced Accuracy

Payroll software makes it easy to flag missing information or incorrect filings before running payroll. In turn, this prevents human error. You don’t have to rely solely on your own talents but can use software to help boost your productivity.

This is also a necessity when it comes to processing taxes. You don’t want to get tax calculations wrong as that could lead to fines/penalties and disgruntled employees.

Customer Support

Having trouble running payroll? Not sure you’re using the right methods when running payroll? Need a third-party application to integrate with your payroll software? One of the most overlooked reasons to use payroll software is customer support. Customer support can help you with things like:

• Add new users
• Integrating software
• Optimizing your payroll
• Implementing updates
• Staying compliant with state and federal requirements
• Transitioning from old systems to new ones

Cost-effectiveness

Most payroll software is going to provide a good ROI for your money. For starters, the software will reduce the HR workload for staff. What used to take weeks, can now take minutes with just one HR professional. You won't have to hire nearly as many HR staff. They can also be more efficient when it comes to their daily duties. 

One of the main problems facing companies without the right tools and personnel is compliance penalties. Validation procedures and automatic checks done by the software can essentially eliminate this problem for your business. This is especially important for small businesses.

Improved Data Security

Yes, payroll software can even help you improve your security. Oftentimes, the software will use multiple layers of encryption and verification to access employee data. Furthermore, your information is not just stored in a file cabinet, but under multiple levels of security.

Software providers also routinely release updates and improvements to keep the system ready for cyber-attacks. You can also implement multiple layers of access control to prevent unwanted eyes on your documents. Most software will allow a company to create periodic backups of documents and information for safekeeping.

Integration with Other Software

While each payroll software is different, most systems offer integrations with other third-party applications to speed up HR processes. This could be from anything like accounting software to biometric security measures. Before choosing a partner though, make sure they have the integrations you need. This is key to making a simple transition to the new system.

Scalability and Flexibility

Did you know that most payroll software is scalable for growing businesses? You can add users in just a couple of clicks. Because updates and features can be released online, you can add the features you need after contacting your supplier (your pricing will probably go up if you have a fixed rate). The right payroll software allows your business to be flexible and stay up to date with the latest industry standards for employees. Something as simple as offering different payment methods (check, direct deposit, etc.) can have a massive impact on your business. No matter your business size, the right software can make all the difference.

Choosing the Right Payroll Software for Your Business

Not every payroll software is the same and many providers offer unique features that can be fine-tuned to your needs. Here are some simple guidelines to ensure you make the correct choice for your business.

A. Identify your business's specific needs

How many users will you need? Does your company need an employee portal? Do you offer special pay, rotating shifts, or work in a unique industry? These can all affect the type of payroll provider you choose. Business needs like these listed should all be considered:

1. Company Size:
   • Small businesses may prefer a payroll provider with simple, user-friendly features and affordable pricing.
   • Larger enterprises may require a more robust payroll system with advanced features and scalability.
2. Compliance and Tax Filing:
   • Companies may look for a payroll provider that offers automated tax filing and compliance with federal, state, and local regulations.
3. Integration with Other Systems:
   • The ability to integrate with existing HR, accounting, and time-tracking systems may be a key consideration for some companies.
4. Payroll Features:
   • Companies may prioritize specific payroll features, such as direct deposit, pay cards, and the ability to handle multiple pay rates and schedules.
5. Employee Self-Service:
   • Companies may prefer a payroll provider that offers an employee self-service portal, allowing employees to access pay stubs, update personal information, and submit time-off requests.
6. Customer Support:
   • The availability and quality of customer support may be a deciding factor for companies, especially if they anticipate needing assistance with payroll setup or troubleshooting.
7. Reporting and Analytics:
   • Companies may want a payroll provider that offers comprehensive reporting and analytics tools to help them track payroll expenses and trends.
8. Security and Data Protection:
   • You may prioritize a payroll provider that has strong security measures in place to protect sensitive payroll and employee data.
9. Pricing and Cost:
   •  This isn't just a one-time purchase. Purchase of a payroll service may include any setup fees, monthly fees, and per-employee charges.
10. Customization and Flexibility:
    • A company may prefer a payroll provider that offers customizable options and the flexibility to adapt to their unique payroll needs.
11. Ease of Use:
    • User-friendliness and ease of use may be important factors for companies that want a payroll system that is simple to set up and manage.
12. Mobile Access:
    • Companies may look for a payroll provider that offers a mobile app or mobile-friendly interface for on-the-go access to payroll information.

B. Research and compare various software options

The best way to target all of your needs is to consider multiple options in the space. Fortunately. 360Connect has your back. Check out our article here for some of the top recommendations:

D. Request a demo or trial period

Before making your choice, consider a trial period or viewing a demo of the software. Make sure to include your HR staff in this demo and ask for their honest opinion. You want them to be empowered by the new system. Not hampered by it. Seeing a demo or having a trial period allows you to see how the system would work best for you and roadmap potential roadblocks.

E. Read user reviews and testimonials

Lastly, one of the best ways to understand if a software provider is a good fit for you is to check out reviews. Look up reviews online and check with those in the industry to see if the company has a good reputation. Ask to see if you can look at case studies to show how a business was improved by specific payroll software.

Ready for Payroll Software for Your Business?

Payroll software is one of the best investments your company can make. Don't risk going without it. Instead, use 360Connect to find the perfect solution for you! Just fill out our 1–2-minute form and we'll contact you to verify your information. Up to 5 different companies will reach out offering quotes on their services all for free! It's that easy.