Every business has to deal with some degree of payroll. From check printing to tax filing, payroll software is designed to streamline operations by calculating employee salaries, wages, bonuses, tax withholding, and deductions while also running payroll on weekly, biweekly, or other schedules.
Running payroll can be a labor-intensive process, which is why online payroll software was developed to streamline wage-related workflow. Like on-premise solutions, this cloud-based payroll software functionality includes calculating compensation, withholding taxes, and much more as securely and accurately as possible.
Online payroll solutions may also include elements of human resource (HR) software, such as time and attendance tracking, in order to accurately perform wage calculation. Yet one of the main roles of full-service payroll software is to facilitate the transition from batch check printing to direct deposit payment. Included or optional add-on modules even cover general accounting tasks necessary for balancing payroll and other financial services.
Online payroll software offers many benefits to businesses looking to adapt how they run payroll:
Of course, the first benefit of online payroll software is the ability to perform payroll services anytime, anywhere. Just log in, check your totals, and grant approvals. Financing and HR departments can even run payroll automatically through cloud-based systems. Just select paydays in advance or plan for weekly or biweekly payroll based on what payment plan your company prefers. Same-day direct deposit also means more money in the bank for your company, helping to keep accounts balanced as long as possible.
Online payroll software can also benefit your company by consolidating all historical data into one accessible location. Check was past employees earned and how workers’ compensation was handled to get a better understanding of acceptable offers for new hires. No more digging through old pay stubs and adjusting for inflation: just let the software automate the work.
Self-service portals give employees the tools they need to do anything from submitting time off requests to managing their retirement and 401(k) contributions. Intuitive mobile app designs ensure ease of use even for employees who are less than tech-savvy. This is useful for small businesses who cannot have a dedicated financing or HR department in charge of running payroll. Online payroll services can be accessed by any approved employee from anywhere.
Did an employee vacation overlap two pay periods? Employees can go into their account to mark their PTO themselves. If they make a mistake scheduling their time off, user-friendly software makes it easy to enter adjustments after the fact and ensure payroll is accurate in time for payday. And the workers themselves can use mobile apps to review their payroll data for accuracy or change their preferences for employee benefits at any time even if working remotely from home.
Another benefit of online payroll software is the ability to expand your services as your company grows. If you plan on opening new locations around the world, having an online payroll software can help you keep up with the more complex payroll processes or tax payments required by those local government entities. Or you can calculate the exchange rate between different currencies to correctly pay international employees.
Online payroll software is capable of keeping you up-to-date on the latest minimum wage laws in areas you operate. You can also access periodic reporting on government regulations to ensure continued compliance with wage laws. Automatically download the latest versions of tax forms, like the W-2 or 1099, to supply your employees at tax time. These forms are also useful when filing payroll taxes or undergoing IRS audits by creating a digital papertrail of all your employee pay stubs.
There are a number of local, state, and federal laws your business must consider when processing payroll. Each of these laws are used to calculate how much tax is withheld and are affected by the number of employees your company has, their full or part time status, and a few other factors. Save time running complicated payroll with easy to use software. Along with organizing payments, automatically generated payroll reports can provide regular updates on how much is withheld and how employee benefits are being compensated.
Control costs at your company by finding affordable payroll software to fit your needs. Cloud-based payroll software can lead to more cost savings from all your future payroll runs. Most online software as a service (SaaS) products range from $5 per month per user up to $45 per month. Others are based on the total number of employees covered by your payroll.
A few solutions may offer a perpetual license instead for a one-time fee, though training, updates, and maintenance may cost extra. Whether you’re a small business owner or accountant for a global corporation, you can find the best payroll software packages priced for your budget.
The switch to online payroll software has led to a lot of useful benefits for businesses looking to streamline payroll services. As described above, running payroll online with direct deposit is one of the biggest payroll trends worldwide. How it works is simple: employees provide a bank routing number to your HR or accounting department. When payday rolls around, the funds allocated to them are directly transferred to that account.
New hires across every industry are starting to demand direct deposit since it streamlines compensation. Understandably, no one wants to wait for batch printing or physical mail to get paid. While it’s useful to keep your payroll options open by still offering paper paychecks, it doesn’t hurt to also have direct payments ready to go. Keep your company up-to-date with cloud-based direct deposit payroll as soon as they start onboarding.