5 Critical Factors To Consider For Evaluating Payroll Technology
Innovative payroll software is something organizations of all sizes require. However, choosing the proper and most fitting tool is often a daunting task. There are thousands of different payroll solutions, such as HR Payroll Systems, and each has its own unique pros and cons.
- How do you determine what solution is right for your company?
Even when you begin a payroll software comparison, it’s essential that you look at each product and ensure it is in-line with your investment plans and business objectives.
Five factors to help you make the right decision can be found here.
1. On-Premises vs. Cloud Solutions
With an on-premise software solution, you have your tool installed on a physical device and it’s stored on your in-house server. Some businesses feel more at ease with this physical, in-house setup. However, a crisis scenario or cybercrime may put the software and information at risk.
For cloud solutions, an online app is accessed through the internet and all of the data is stored on the cloud. Usually, you pay a monthly subscription fee to use this service.
An appealing aspect of cloud solution is that it can be accessed across multiple locations and devices and it’s typically mobile-optimized. There are some solutions that have their own, native mobile app.
Cloud solutions are considered more secure. Also, with on-premises solutions that only run on a specific number of devices, users may eventually face scalability constraints.
- If you have a workforce that is regularly on the go, or that works from home, choosing a cloud solution is likely the best solution.
- However, if you have a fixed business unit that operates from a certain zone, then a hybrid or desktop solution may be fine.
2. Required Features
Before choosing a payroll software solution, determine the feature you have to have. Processing payroll is something that varies from one business to another and the solution used should provide for the managed tasks, number of employees, and current needs of the business.
Some of the common features modern payroll systems include are bank account synchronization, attendance and time tracking, tax deposits, and tax filing. If you have other external parties who are involved in the payroll process, you may want to find a more budget-friendly solution.
- However, if your in-house team handles all aspects of payroll management, be sure to find a comprehensive solution.
3. Cost to Own
Payroll is considered a cost center for any company. What this means is that it does not make you money. However, it’s a crucial business function. Usually, the more features that a payroll solution has, the more it is going to cost.
There are other payments that must be made, too, including setting up an account, customization, customer support, and data management. Usually, vendors charge based on the paychecks cut or the number of employees. You need to consider which option works best for your business.
4. How You Pay
- How are you paying your employees?
- Do you pay an hourly wage, commissions, monthly salary, incentives, tips?
Also, what method of pay disbursal do you use – paycards, bank payments, checks, something else? You need to select software that works with your chosen payment method.
Also, managing disparate employment models is going to require a higher level of complexity than managing the compensation for a full-time, set, work population.
Automated charts and spreadsheets aren’t dependable tools you can use to manage this complexity in compensation administration and strategizing.
It’s best to find technology-led payroll software products that offer the services you need and that are able to sync with the current payroll methods you have in place.
5. Taxation Concerns
Tax management is a crucial part of any payroll administration and management process. Using a software solution that provides tax filing as an add-on service can help you save time and reduce stress for the entire payroll team. After you have provided the needed authorization for accessing data and running calculations, a quality payroll solution is going to handle the rest.
Getting the Right Payroll Solution
It’s crucial to think about what your business’s payroll needs are to find the right software solution. Be sure to consider the factors here and find an option that works with your company and budget.
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