Today, companies can’t do without payroll digitization – but with so many solutions available, it could be confusing to find one that works for you. Having a ready cheatsheet – complete with the very basics, essential add-ons, and your budget for the quarter – could be a great help. But getting there starts with thorough and exhaustive research.
Payroll software is essential for organizations of all sizes. However, selecting the most appropriate and fitting tool is often a daunting task. There are thousands of payroll software solutions, each with its own set of pros, cons, and differentiators. Which is the best solution for your business?
Even when you are conducting a payroll software comparison, it is important to carefully study each product and make sure it’s in-line with your business objectives and investment plans. We share 5 factors to aid this decision-making process:
Cloud vs. On-premises solutions
An online app is accessed via the internet, all the data is stored on the cloud, and you would likely pay a monthly subscription fee for using the solution. The solution is accessible across devices and locations and is often mobile-optimized (or may even come with its own, native mobile app).
An on-premises solution is installed on a physical device and stored in an in-house server. At times, businesses feel more at ease with an in-house, physical setup; however, a cybercrime or a crisis scenario could put it at risk.
Cloud solutions, like ADP for enterprises or the SMB-friendly Paysauce, are more secure in that sense. With on-premises solutions only running on limited devices, users may face scalability constraints. So, which one is a best fit for you?
If you’re regularly on the move, based out of many locations, and often work from home, a cloud solution is probably best. On the other hand, if you’re a fixed business unit operating from a specific zone, a desktop or hybrid solution could work for you. We share more benefits of using cloud-based payroll, hereOpens a new window .
Also read: Points to Consider When Moving HR Applications to the CloudOpens a new window
The features you need
Before selecting any selection, decide upon what’s absolutely required. Payroll processing varies from business to business, and it will depend on the tasks managed the number of employees and the current skill sets under evaluation.
Some of the common features one must consider include: tax deposits and filing, time & attendance tracking, bank account synchronization, and more. If there are other external parties involved in managing your payroll, you could look at a more simplistic/budgeted solution.
Also read: New Tax Code to Test Payroll Pros and Payroll TechOpens a new window
However, if end-to-end payroll management is primarily your responsibility, it’s important to look at a comprehensive offering.
The cost to own the product
Payroll is a cost center for any company, which means it doesn’t make any money. However, it’s as essential as any other primary business function. Typically, the more features a payroll solution carries, the higher its cost component.
There are further payments to be made as well, such as setting up the account, data management, customization, and customer support. Mostly, vendors charge by the paycheck or by the number of employees. Clearly, the best way forward is to select a package that fits your budget.
The way you pay
How do you pay your employee – hourly wages, monthly salary, tips, commissions, incentives – and what is the mode of disbursal – checks, bank payments, paycards, and other means. The software you choose must be in-sync with your payment method.
If not, there will be a glitch or some sort of a bottleneck in the payment process. Bear in mind, payroll service providers could charge you a little extra for additional features.
“Managing disparate employment models involves higher complexity than managing compensation for a set, full-time work population. Spreadsheets and automated charts are no longer dependable tools to help manage this complexity in compensation strategizing and administration.
If they have already not, it is high time organizations implement the latest technology-led compensation software products. Look for ones that incorporate flexi-compensation planning and integrate with other HR and business systems where relevant,†we recommendOpens a new window , as suggested by the recent trends report by consulting firm, Towers Watson.
Taxation is a critical rider
Tax management is vital to any payroll administration process. A software solution that offers tax filing as an add-on, is a great time-saver and stress buster for your payroll team. Once you’ve provided authorization for data access and calculations running, the solution will do the rest.
Also read: 4 Ways AI will Revolutionize the Tax FunctionOpens a new window
Final call
As a closing shot, we’d recommend you reconsider your company’s needs, do a little online research, and select a solution that combines UX with functionality, cost benefits with utility, and finally, promises quality after sales service and a vendor keen on building long-term relationships.
Also read: Improving Employee Experience with Pay TransparencyOpens a new window