Simply put, payroll management is the process of calculating wages, administering benefits, facilitating tax deductions and noting employee hours. Doing payroll manually consumes lots of time and manual effort, creating a demand for software. Let’s take the first step toward learning how payroll management software streamlines all things pay-related!

Reduce payroll errors

You value your staff, and consequently, the main objective of payroll processing is calculating paychecks by tracking the number of hours worked, pay rates and pay periods. Opting for software reduces manually inputting information, eliminating human error like duplicate entries.

Even a single error puts you at risk of fines and could significantly dent workplace morale. Effective payroll processing ensures you’re paying employees a competitive wage and distributing reliable paychecks without hiccups (pivotal for employee retention).

Automate core payroll tasks

Fortunately for accounting and HR departments, payroll software does most of the heavy lifting regarding core tasks, from conveniently storing employee information to notifying you on current tax laws.

Payroll management systems are able to automatically calculate wages and taxes. Most payroll solutions also customize features to ensure your specific requirements. These systems also help track employee costs, store and locate employee records, generate forms and send you reminders when it’s time to approve payroll.

Some of the essential tasks that payroll management includes are:

• Core Payroll Management
• Tax Filing
• Financial Management
• General Forms

Conduct core HR tasks

Some payroll management systems are included as part of a human resource information system (HRIS), providing tools for managing a wide range of HR responsibilities.

There are a variety of HR tasks that influence payroll. From record keeping to synchronizing time and attendance tracking, streamlining HR and payroll, by integrating additional HR functions into your payroll system is an incredible time-saver.

Some of the HR tasks that payroll management helps with includes:

There are a variety of HR tasks that influence payroll. From record keeping to synchronizing time and attendance tracking, many solutions are able to streamline the payroll process by integrating additional HR functions into the system.

Some of the HR tasks that payroll management can help with includes:

• Time and Attendance
• Benefits Enrollment
• Recruitment
• Employee Lifecycle Management
• Personnel Tracking

Increase job satisfaction & retention

According to the Bureau of Labor Statistics, in May of 2023, the number of resignations increased to 4 million. Filling an open position is time-consuming and often labor-intensive, making retention a priority. Once you’ve finished interviewing and vetting candidates, you offer the job to the best fit. If they accept, it’s likely due to your promises, like your offered salary.

Outdated direct deposit information can cost your company $9,347 to fix and increases the risk of late payments, impacting employee retention. Responsible payroll management eliminates the risk of human error resulting in inaccurate paychecks, costly fines or legal consequences (while preserving workplace satisfaction).

Improve Revenue

For many businesses, tracking items such as the hours employees work, their rate of pay and accounting for additional factors such as sick or overtime pay can quickly turn into a mountain of information to enter manually into an Excel spreadsheet – with plenty of room for costly error. A simple typo or misplaced decimal wreaks havoc on your finances.
Fortunately, these mistakes are entirely avoidable with payroll management tools.

Automation takes the manual effort out of tracking payroll details and generating reports while ensuring you follow current tax laws. It’s also nice to know that your HR and accounting department won’t be wasting time correcting payroll errors. Boost revenue by reducing around 80% of payroll costs, according to the American Payroll Association estimates that this kind of efficiency can result in an up to 80 percent reduction in the cost of payroll processing costs.

Ensure compliance

Payroll software helps avoid costly penalty fees that result from inaccurate bookkeeping. The early 2000s witnessed the Enron scandal, resulting in a slew of stricter financial regulations. These regulations (like the Sarbanes-Oxley Act of 2002) proved to have a significant impact on the future of payroll.

Payroll management tracks all of your data, ensuring that you’re paying exactly what you should be paying in taxes and helping you to avoid costly non-compliance penalties.

Customize payroll processes

Utilizing a payroll management system allows for quick changes to be made in house without hassle. Even after you’ve input your initial withholdings and deductions. In the event that a change needs to be made later on, authorized users have immediate access to the system empowering employees to make any required changes without contacting a third party.

Even update information from the comfort of your home with a cloud-based system (as long as you have assigned clearance), keeping information secure while boosting accessibility.

FAQs

What should my budget for a payroll management system be?

As with all things, pricing will vary based on the vendor and how advanced the solution’s capabilities are. If you’re looking for a more basic payroll system, free payroll software might meet your needs, while a more advanced system will require an upfront cost or a subscription (monthly or annually).

How do I know which payroll program is best to implement?

Understanding the needs of your business and the capabilities of various software systems helps determine which vendor will best serve your business and how to implement it.

When shopping for an implementable program, be aware of your specific needs and which vendors offer your must-have features. After your list of features, define a price range among vendors. (Ensure you aren’t overpaying for features you don’t need). You’ll also want to look out for additional fees, like using cloud-based software.

How long will it take to implement the solution?

While many of these systems strive to be user friendly, there’s still a learning curve. The more advanced features a software possesses, the longer it will take to become totally efficient using the system.

Fortunately, many vendors offer demos of their products in addition to a variety of self-learning tools. These tools can help you get started with the system as well as answer questions along the way!

How do I select a system for payroll management?

Regardless of the size of your business or what your payroll needs are, it’s likely that payroll management can help. There are plenty of payroll software options to choose from; at this point, it may be just a matter of picking the right one.

Some of the most important considerations when choosing the best payroll software for your business will be the size of your business, your preferred deployment method and your budget. A great way to start your search is by compiling a list of requirements you need from payroll software and keeping it handy when shopping around so you know which product checks all the boxes.

So many products and so little time, right? We’ve got your back! See how top payroll software options stack against each other using our free comparison report!

Still looking for guidance in sifting through all of the available payroll solutions on the market? Our team of experts is happy to help. Get a personalized list of recommendations by messaging support@selecthub.com or via phone at 855-850-3850.