What is Payroll Software? How to Choose the Right Payroll Software for your Business

Every business needs a human workforce, and managing this workforce is not easy. You need to track the employees’ attendance, work performance, requirement and pay them according to their salary structure. This process gets complicated when you handle a significant amount of workforce. The HR department has to also comply with government regulations, company policies, dynamic labor market needs, and so on. For instance, the payment structure for a contract employee, trainee, and C-level employees differ.


Any complicated process needs automation or other technological solution to simplify the tasks and to remove redundancies. This situation calls for payroll software to make this process easy. It can automate the payment process and help the employer meet government compliances. The software can make the tedious task easy and let you focus on the core processes of the business.

However, you cannot choose a random payroll program for your business. You need to know various aspects of the software package to compare before choosing the right plan for your business. Otherwise, it will make the process even complicated.

Here are a few elements you need to consider before choosing the best payroll program for your business.

? Design: Every business has its nuances and requirements that you won’t find in other companies. Due to this uniqueness factor, make sure the payroll software you are choosing has the specific design to cater to your business requirements by integrating with your legacy systems. You cannot change your entire IT infrastructure just to incorporate one software.

? Layout: Before choosing best payroll software, make sure that the technical complexity of the package is at par with your technical ability. A good payroll program is easy to use without in-depth training. But there can be many complicated types of payroll programs available in the market, which would be the right fit for your business requirements rather than simpler ones. Choose the layout that is more functional for your enterprise.

? Cloud Support: If you are a static business with employees working in-house, cloud support might not have a big difference. If there are employees in different geographical locations, you need to track their performance, allocate resources to multiple users at the same time, and other services. For these types of firms, cloud connectivity featured HR software is a must. It lets you track the activities of your employees and release their payment on the move. It gives essential freedom for your business to go beyond geographical barriers

? Off-cycle: Although most businesses release payment at the end of every month on a fixed date, some payments need to get released earlier before the payment cycle. It is called off-cycle payment. It can be advance payment, bonus, or reward. Determine whether the payroll software you have in mind has this ability or not. If the off-cycle payment is a common scenario in your business structure, it is an essential feature.

?Direct Deposit: The world is rapidly going toward digital solutions. Unlike the old days when you release physical checks, most employees prefer direct deposit. Make sure the payroll HR software you are choosing can automate bank transfer for your employees, on-demand and at the end of the month cycle.

? Integration with HR workflow: Many payroll programs work independently, and integrating these programs with HR workflow can be technically challenging. Avoid such programs; instead, choose those payroll programs which are in line with your current HR system. Easy integration will let you work from a single window and it will reduce confusion in the overall system.

? Location: Make sure the software is from your country. Japanese payroll software will not work in the USA because it does not comply with the USA government regulations.

? Tax compliance: Taxation is an integral part of every business. At the end of every financial year, every company allocates an ample amount of workforce to file taxes. At this time, the payroll software plays an important role and presents you with the required data for taxation. Ask the software company, how their program can help you with taxation, and how their program will follow the tax compliance of your state.

? Scalability: Prosperity is associated with every business, and your business will also grow further in the future. Make sure the payroll program can handle the future growth of your business. Ask the software company, how much scalable their programs are, and how much you have to spend in the future for a more extensive system.

? Price: Affordability is an essential element. You cannot spend a large part of your investment or working capital on license costs or monthly payment plan. Choose a plan or software to adhere to your current requirements. As you scale up, you can go on for an extensive plan or even buy a licensed software package.

? Customer support: Last and the most crucial point of a software program is the customer support, how good you will provide the customer experience and keep them engaged and satisfied. Make sure that the technical team of the software provider will offer support for implementation, usage, troubleshooting, and other processes.

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Article Author Details

Nishi Singh

Nishi Singh is a professional journalist and editor in New Delhi. She has studied Mass Communication from National Institute of Mass Communication. She loves to share her thought with the world.