Payroll software is used to calculate how much employees get paid in an organization. It is also used to pay the salaries and compute tax and benefit the organization. One can opt for a dedicated payroll software or roll it into more extensive ERP software, human resource management software, or other accounting software. Payroll software minimizes the manual work and centralizes different payroll functions. Two other benefits of using payroll software are that they minimize the possibility of human error and allow employees to perform certain functions themselves whenever required.
Capabilities of Payroll Software
Different features and capabilities should be included in payroll software. Some of the common ones are listed below:
- Calculating the pay of employees
- Calculation of deductions for taxes and retirement contributions
- Processing of direct deposit cheques
- Printing of cheques for employees who are not enrolled with direct deposit
- Tax form generation
- Integration of the payroll with external payroll vendors
- Maintaining the payroll history of all employees
- Administering benefit plans
- Tracking and auditing of payroll
- Managing retirement plans
- Revising the salaries of employees as per the requirement
- Calculation and generation of reports of payroll
- Self-servicing option for employees
Best payroll software options
Some of the best payroll software options that can be considered by small and big companies include:
- Gusto
Gusto is a popular and well-designed payroll software that has good reviews. This is a full-service payroll software and has some of the most important features required in payroll software. It provides automatic filing of local, state, and federal taxes. Moreover, it provides workers compensation administration and access to employees. The platform provides the facility of a two-day direct deposit. This is also an accounting software and has time-tracking integration, allowing it to perform multiple tasks. It also has a provision for wage garnishing deductions and performs automatic payroll runs. Some of the features provided with a standard subscription of Gusto attract extra charges in other software. Customers have consistently given good reviews for Gusto’s features and designs.
- Paychex
Paychex, a cloud-based payroll software, is best suited for small businesses that do not wish to outsource the complete functionality of HR and want to have a solution in-house. Some of the features included with Paychex are new-hire state reporting, automatic tax filing of employees on the payroll, and financial wellness program. Furthermore, there are more than 160 reports on Paychex Flex, which is a huge number when compared to just a couple of reports in other software options. However, one has to subscribe to the two most expensive plans to get many reports. Otherwise, it is a value-for-money service that is suitable for small businesses.
- Quickbooks Payroll
This accounting software started the use of windows that looked life-like. Payroll and employees can be managed on software that offers numerous features that are important in payroll software. Some common features include overdue items and contact data. There is the option of a new Pay Now link that allows users to link their invoices to bank accounts and credit cards. Some other inclusions are direct deposit, auto payroll, time tracking, health benefits, tax penalty protection, and HR support.
- OnPay
The biggest USPs of OnPay include automatic tax filing that is a part of all plans, workers compensation with health insurance add-ons, and direct deposit link and debit card payment options. Inclusions like garnishing wages and giving employees multiple payment options are charged for by other software options; however, they are free with OnPay. The setup of the software is extremely easy, and the starting price is also reasonable enough for a small company to give it a try.
