If you are looking for online payroll software in 2017 for the first time, then you are probably really late. But it is better to be late than never. And despite being late, you are probably lucky because you now have so much of data and information at hand before you can make your choice.
Online Payroll- What is it?
The software can be installed on your computer and it can also be operated in the cloud, which makes it possible to use the software and run the business from absolutely anywhere. It can be used to pay all types of employees from full-time and permanent to contractual and freelance workers.
Features of Online Payroll:
- Payroll Processing: This is a feature that automatically calculates what an employee should be paid and it takes shift differentials, holiday pay, overtime and taxes into account. The Social Security number and other benefits will also be given to the employee, either as a check or by direct deposit.
- New Hire Reporting: The government can also keep tabs on the new hires that are reported directly by the payroll service.
- Taxes: The software withholds taxes from the employees when the quarterly payroll taxes are reported to the state and federal agencies. The 1099 and W2 forms are also issued during the tax payment.
- Manages Paid Time Off: The software is responsible for managing the paid time that you get off by keeping track of the vacation time earned and used.
- Reports: Detailed reports on wage and labor are automatically generated to give you a better understanding of the business processes and areas for optimization.
Advantages and Disadvantages of using the Online Service Provider
With online payroll software, it is possible to reduce the amount of work the HR personnel will have by automatic payroll calculation, tax forms, payroll tax forms that are completed for you. The process is also really simple and takes only a few minutes when it is done using the online service. The problem with this system is it requires investment. The software is more expensive than when you do it yourself. If you are in a remote location that does not have a proper connection to the internet or if the connection is very inconsistent, this service might not work out for you.
Because the computer does not easily make mistakes and all the calculations are done by the computer to save both labor and paperwork. This way, the employees can focus on their actual job and what really matters. Using the payroll software, it would be possible to generate reports that comply with the standards and regulations.
Choosing the Right Payroll Software:
Not all payroll software specializes on the same thing. Based on the size of your business and the features you require, you can choose the appropriate payroll software.
- Features: apart from processing the payroll and handling tax obligations of both the employees and the company, it is wise to see if the software provides direct deposits, manages paid time-off, details payroll reports and garnishment payment.
- Ease of Use: The software should not be hard to use. It should have a user-friendly interface, be clean and clutter-free. The process should be completed in minutes whether it is running the payroll or adding new employees into the system.
- Cost: Probably the most important factor to look into when you are purchasing the payroll software. You want software that you can afford to buy.
- Reliability: It is also smart to find a provider who has previously been well-established. This way, you can have an idea of what you can expect from the software. Also, keep in mind that payroll software typically deals with money. And money is not something that you want to be callous about. Money is also the motivation behind your employees’ hard work. So you should really think it through if you are willing to trust a first-timer to handle all the money.
- Integration: If the payroll software can integrate with the data and the format that you already have, then it becomes easier to start using the new software. For instance, rather than having to input the daily time logs, if it could be integrated with that system, it would be easier and more effective. And it is a mandatory factor because time tracking functionality is important to determine the payroll.
- Support: Irrespective of how well the system is, there should always be a line dedicated to taking care of customer grievances. It can be in the form of email, live chat or a toll-free phone number.
- Outages: In cases where the payroll service is online and provided on a website, when the site undergoes maintenance or when the server is unavailable, the client, you, will be unable to access the services.
- Scalable: Not all the businesses have the same requirements. You need to have a system where you can scale the product and use the features that you actually need. In cases of smaller businesses, the system does not have to be as detailed or robust as it has to be in cases of large corporations to handle the large data.
- Added Services: You should also check for availability of additional options such as benefits and retirement plans that can be administered. Worker compensation should also be considered. When these features are also available, the software can operate seamlessly well for your requirements.
Making payment to the employees can take place in a range of ways from direct deposits and checks to payment cards. There can also be pay stubs that you can print on your own. There are some systems where the paycheck is printed and sent to the office where it can be hand-delivered to the employees. Some payroll software also provides mobile access which can also be used to access the information anywhere you go. This helps you to clock in the number of hours that you might need to reach the targets you have in mind.
Related: Cloud Based HR Software