Top 5 Important Factors When Choosing Payroll Cloud Software Services
Is your business planning to invest in Payroll cloud software in the near future? A common mistake that businesses make when evaluating the value of software for payroll is not realizing the full potential of what the technology can offer. Usually, they assume the software will help streamline payroll & HR processes and that is it. However, modern payroll cloud software services offer a range of features that go above and beyond basic HR & payroll functions and can actually help bolster your bottom-line.
Understand The Working of Payroll Cloud Software Services
The payroll on cloud software collects data on cloud of your all employees that your HR department feeds into the system. Using the data, you can then generate reports that inform you about employee performance, discipline and engagement. Depending on the software you choose, the information could extend beyond these factors. The key thing to notice here is that the information you collect can be used for making informed decisions about your employees. You can come up with strategies to train, on-board, retain, and engage employees.
You may be a growing company where manual processing is no longer efficient and practical. Perhaps you have outgrown an existing system. Or you’re simply on the lookout for ways to improve payroll in your organization.
In any case, it is very likely that the goals for each scenario are similar, being any of the following:
- Get accurate and timely payroll computations
- Process payroll faster and more efficiently
- Save operating cost
- Consolidate other payroll-related processes e.g. managing employee leaves/absences, produce government-mandated reports,etc.
However, choosing what solution best fits your needs is not always that easy and simple given the different options out there.
Consider These 5 Important Things When Choosing Payroll Software Services
There’s more to payroll on cloud software than features. When you buy or subscribe to a new solution, you’re also forming a relationship with the software provider. It’s important to make sure that provider offers the support and flexibility your business needs to grow.
Here Are Top 5 Things That You Should Consider
1. Payroll Cloud Software Services for Small Businesses
- You are not a Fortune 500 company, and you shouldn’t have to pay a fortune for payroll, especially when there are cloud-based payroll platforms that are more affordable
- Payroll cloud software services providers that specialize in small businesses are also more aware of your unique needs
2. Transparent pricing
As a starting point, most payroll cloud software services provider charge a base fee per pay cycle each time you run payroll combined with a dollar amount per employee. Other factors that affect pricing include the number of pay cycles you run per month. For example, weekly payroll would mean a minimum of four pay cycles per month. There may also be costs that are set by your payroll tax needs and the number of entities to which you report and remit. For an exact amount, speak with a sales rep to get an estimate.
3. Awesome Customer Service
If you can’t ask questions, you can’t get answers. You’re going to trust this company with your payroll, the money you have set aside for your employees. If you don’t feel welcome, walk away.
4. Flexibility of The Software
One size does not fit all, especially if you’re a small business. Make sure you feel like your payroll provider understands your needs and is willing to meet them. Try to find a provider that doesn’t require an annual contract, in case your situation changes or something goes wrong.
5. Free Trial
Most small business payroll cloud software services provider also offer a 30-day free trial — meaning you can get set up, run a few pay cycles and “kick the tires” to make sure the software is right for you.
Important Payroll Cloud Software Service Features
Once you have narrowed your options to 2-3 of the best payroll cloud software services providers that fit your criteria, you should look for these key features:
- Direct deposit: There’s a beauty to having funds go directly into your employees’ bank accounts. In addition to the speed and convenience, there’s a lower risk of fraud, lost checks, and global deforestation.
- Tax compliance: When you have employees, or even when you pay yourself, there are several payroll taxes to take into consideration, including income tax, social security, Medicare and other standard expenses. Payroll software helps automate this function by deducting and reporting the amounts, then paying (reporting) these funds to the appropriate federal, state and local tax authorities.
- Reporting capabilities: Reporting goes hand in hand with tax compliance. Often, these same agencies require regular reporting of payment amounts. Reporting is also required at the end of the year, and it’s pretty helpful for keeping an eye on labor costs.
- Employee on-boarding or termination: The right payroll software will make it simple to add or remove employees through an administrative panel.
- Income types: Your small business payroll should allow for different types of income, including holiday pay, expense reimbursements, commission, bonuses and other taxable benefits.
- Deduction types: The ability to deduct costs like medical, dental, vision and life insurance should also be on your checklist
- Off-cycle payroll: You’d use this function to distribute bonuses, process an advance or final pay, or make a correction.
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