Payroll is a fundamental part to most business and unfortunately there is not a ‘one size fits all’ payroll system, so choosing the right payroll system for your business is paramount it will effectively tackle all your payroll daily tasks, including timekeeping, wage calculation, withholding, payroll accounting, and payroll tax reporting.
The wrong payroll system is time-consuming and leads to payroll mistakes. It is important to assess the payroll system you are currently using and decide whether it’s right for your business or if another payroll system might adjust your payroll for the better.
Below we list 5 key points towards choosing the right payroll system for you.
Number of employees
Foremost you need to work out, how many employees do you need to process payroll for in the current year? When working out this figure, include seasonality and any resulting staff.
It’s important to keep in mind how your company will grow so include starters and leavers even if someone leaves your business, they will need to be included in year-end reports.
Frequencies and types
How often do you pay employees? Weekly, fortnightly, monthly, or even 4 weekly? Does every employee get paid in a similar way or do you have some get paid monthly or even weekly?
If you are paying staff in a mix of hourly pay, salaried staff, or commission then it would be advised to look into a payroll service that allows you to process wages in various formats.
Also consider how employees’ holidays are calculated
- Set amount of days a year
- Third of the working week
- Percentage of hours worked
If tracking holidays is currently done manually, check which payroll packages can help you to handle this.
Compliant with the current legislation
Aside for standard payroll laws, depending on the type of workers you have and the kind of business you run, you will need to look around for software that complies with the latest legislation that your company has to conform to.
In addition to the primary features some payroll software services have extra charges for assistance with taxes and other types of compliance. Make sure you shop around knowing what legislation you may need to keep up with.
Security & Privacy
Payroll information is very confidential, it always needs to be safeguarded for both business and employee details. Make sure you get a system with all the up to date technologies. Read reviews from current customers and independent reviews from industry experts, this will give you a clear picture of their experience using the systems.
Furthermore, check that the service is compliant with the most recent GDPR requirements, as noncompliance in this can land your company in difficulty.
A free trail is always advised before investing money into something that simply does not work for you, and to assure an accurate fit for your business.
During the trial check things like the interface, is it user friendly. Customer service, no matter how tech savvy you may be, we all run in to IT issues and a good customer service should be on hand to resolve any issues pain free.
Investing in a contract with a software that you may find impossible to use or a nuisance to reach can be an expensive mistake.