Every company that hires employees needs to have a certain payroll process in place to pay its staff. This procedure tends to be quite complicated, requiring businesses to complete procedures such as keeping records, doing accounting tasks, and being mindful of tax implications as well. For that reason, these processes are no longer manual, but are rather done with the help of specialized payroll systems. If you’d like to implement this solution into your business processes, here are some tips for choosing the best payroll system for your company:
If you’re running a large business and have enough resources to manage an in-house payroll team, an on-premises payroll system can be a good solution for your company. This means that your chosen payroll systems will be stored and installed on servers that are located on your premises. By computerizing the entire process, this solution will simplify payroll management and allow you to depend only on a dedicated team of your choosing. For the best possible results, your payroll systems should be integrated into your HR systems to ensure seamless operations. On-premises solutions are great for companies dealing with sensitive data and worried about security, but they do come at a higher price due to large teams and IT support.
Also known as SaaS (Software-as-a-Service), cloud-based payroll systems can be used by companies of all types and sizes, although they are generally preferred by smaller businesses. Cloud-based solutions are housed in the cloud, at the provider’s data centre instead of the company’s in-house server, and can be accessed over the Internet. These solutions are quite popular among businesses due to their high scalability and cost-effective nature. With cloud-based payroll systems, no software has to be installed, IT support is provided, and the solution can often be integrated into existing HR systems as well. This can significantly reduce administrative errors and streamline overall payroll processes.
A payroll service provider is a specialized company that can process payroll tax statements, payroll calculations, yearly taxes, and other necessary procedures for your business. With a full-service provider, other important processes can also be taken care of, such as deposits and withdrawals for employees, new-hire reporting, withholding and pay garnishments, and similar solutions. If you choose great contractor payroll solutions, it will also be simpler to pay all types of employees, including freelancers, part-time workers, and full-time employees. These experts will also be able to handle other aspects of workforce management, leaving you with more time to focus on your company.
On the other hand, payroll software represents applications that are specifically designed for managing payrolls. These solutions can either be installed on your company computers or stored in the cloud and accessed from anywhere. Payroll software is typically made for handling tasks such as wage calculations, time and attendance, employee payments, as well as tax filings and payments. It can drastically streamline processes for HR teams by enabling easy access, allowing for updates and changes to be made, and providing automation capabilities. However, payroll software does require a learning curve. If your HR and payroll departments aren’t particularly tech-savvy, it might be challenging to implement a software solution.
A wide variety of payroll systems are available on the market today. When looking for the best solution for your business, it’s worth making sure the system has all the key components to support smooth operations. Payroll processing is a crucial element, helping to calculate wages, account for any changes, and pay out salaries automatically. A good payroll system will also support tax processes, such as issuing forms and filing tax reports to relevant government agencies. To drive the growth of your business, choose a scalable solution that can support both your current and future workforce needs and make hiring and onboarding easy. A solution that enables employees to view their own statuses and information is also beneficial for supporting transparency.
When searching for the best payroll service providers, it’s important to keep some key considerations in mind as well. Look at the exact services they provide, and whether they will be able to support any unique business needs such as tracking paid time off and handling various earning factors. Make sure the provider can handle local and state income taxes, unemployment insurance, unemployment tax, and similar aspects. Confirm that their solution can scale with your company as well, and see which types of integration they provide. Along with ensuring that the provider’s pricing structure suits your business, don’t overlook the safety and security measures the company uses either.
When it comes to payroll management, there is rarely a one-size-fits-all solution. Instead, you will have to assess the needs of your company and consider the advice mentioned above to determine the best payroll system for your business.