Payroll is a procedure where employers pay their staff for the work they accomplish. Any organization with staff must have a payroll management procedure established.
An efficient and effective payroll procedure makes sure that employees are paid consistently and accurately & gives HR the opportunity to concentrate on other job aspects.
While payroll appears easy at its core, it becomes complex owing to numerous deductions.
Employers should thoroughly know how to create payroll, and withhold taxes from every paycheck & how to ensure taxes get to the right government agency.
Employers might even be responsible for reducing and paying insurance premiums and depositing funds in retirement accounts or to the selected charities.
Duties of payroll management can create massive burden and even unwanted stress for the small business owners & can be overwhelming for huge businesses.
Missed deadline or wrong filing of taxes can lead to charges or jail time. For avoiding such issues, every mid sized, small & large business must use the payroll software.
What payroll software exactly does?
Payroll management system refers to a software program solely designed for organizing all activities or tasks of the employee payment & tax filing.
Such activities or tasks involve keeping right track of the hours, calculating wages, withholding deductions and taxes, tracking attendance, delivering and printing checks, paying premiums to the insurance carriers, completing direct deposits or/and paying employment taxes to the government.
The software can be bought via HR software vendor or is included in the HR software package as a module within the comprehensive system.
The payroll software needs employers to put in employee wage information/data & hours – and much beyond this. From here, the software utilizes the info/data to calculate & deduct the withholdings automatically. Many payroll software get updated automatically whenever laws of taxes change and even remind the employers about the time period as when to file numerous tax forms.
Why do small organizations acquire the payroll processing system?
Payroll is something, which requires being done regularly and accurately, so that it makes sense to the businesses to invest in software that automates the processes.
The payroll system can meet errors, ameliorate compliance & save crucial time. With the rise in easy to use options, the payroll system is assisting organizations everywhere to retain the control over the payroll procedures while catering higher flexibility as compared to the outsourced payroll.
Payroll software is simple to use & affordable & can reduce errors in payroll procedure and even lower the hours spent on calculating the employee wages, hours, tax withholding, crucially for the small organizations.
Small organization owners can buy an affordable system on their computer or through cloud service through the use of pay as you go module.
They also can maintain control of payroll procedure with the software, which enables them to efficiently compile reports at a single place and make quick changes if required.
Payroll – How to do it?
When the HR department chooses to conduct payroll manually, it generally consumes a lot of their time.
While it is a cost effective process, it needs the employees to learn about the payroll & tax linked laws & leaves great room for manual errors. For this work, there is even a lengthy learning curve.
For those doing their payroll manually, HR employees will spend a sizable amount of time tracking the info/data on pay rate & withholding the info, staff data and others.
Once these data has been obtained, they can easily calculate the wages by multiplying the employee time cards by the pay rate, involving overtime or the tips earned.
Lastly, they lower the tax withholding & disseminate the checks & direct deposits to the employees.
With the payroll management system, your organization will be still handling their own payroll procedures but time consuming features are automated.
The payroll software is a little more expensive as compared to payroll manually but the amount spent is actually worth the lowered risk of errors & time saved in employees daily routine.
All you require doing is buying a payroll system of choice, entering in the business & employee data/info, empowering the employees/staff to track easily their time using the online software & enable the system to efficiently run the payroll automatically & disseminate their wages.
How to select the payroll management system for the business requirements?
Selecting the payroll system that best matches your organization is crucial and there are various factors to note when deciding:
l Your organization’s budget
Firstly, analyze your organization’s size and then decide how much you can spend on the payroll procedure.
Knowing the budget & the classification size of the business narrows down the payroll software vendor’s list.
Small to mid sized companies that do not anticipate any swift growth might want to invest a limited amount on payroll software, which just performs the basic payroll functions.
l Vendor capabilities & reputations
Secondly is to compare the viable vendors offerings & read the reviews from few of their recent and existing customers.
Rapidly or large evolving businesses might want to invest in a payroll system that is well integrated with various other aspects of human resources and planning.
Factor in how many employees the payroll system can manage and even consider the potential growth. When available, request for the demos & view by yourself how simple the software is to work with & how well it can match with your organization’s ideas.
Ensure that the software is made by a highly known brand & not by an unstable or new company.
l Security features
When selecting the payroll software, you will require looking for security. Having a password protected system protects your business against data/infor tampering & potential data breaches.
Initially, the software must have good security ratings and reviews. The vendor representatives must even be able to answer any kind of questions that businesses have regarding security.
l Software compatibility & flexibility
Consider if the system proves to be flexible and compatible. It is crucial to have a payroll system that functions really well with other of your business systems & even grows with your organization.
Look for those integration capabilities & ensure that the software is a good match for any financial or HR software you are presently using.
Alternatively, your business can even obtain a software that well handles the payroll & any other functionality you would want to automate.
l History & report visibility
You will want to have a payroll processing software that enables you to retain the control & view the reports & historical data.
While the payroll processing system is less vulnerable to errors as compared to manual software, there still is potential for glitches and malfunctions.
This can be really helpful for periodic reviewable of the info and make necessary corrections manually when required.
Companies like DBS have come with solutions DynaPay for Dynamics 365 Business Central that provide end-to-end payroll processes.
Dynamics Business Solutions (DBS) is a certified Microsoft Dynamics partner in UAE, we take pride in our ability to develop and deploy the right business solution that matches global client’s requirements.