People who work in human resources, payroll or finance departments know the advantages, along with the pitfalls, of having an automated payroll processing system. As businesses grow, needs and system capabilities evolve, and what did work well may not suit current technology and future growth plans. While choosing the right solution can be daunting due to the many complex options available, focusing on a few key areas will simplify the process and facilitate the right long-term solution.
Key Considerations When Choosing Payroll Automation Software
For businesses with annual revenue over $1,000,000, these factors are critical when selecting automated payroll software, in order to get the most from the system:
1. Ability to increase accuracy while saving time:
If there are multiple ways an employee can accrue and use time, i.e., sick, vacation, PTO, and over-time, using an automated payroll system will be quicker and more accurate for administrators and those receiving paychecks. Whether pay periods are weekly, bi-weekly, or monthly; whether employees work at one location or across multiple states; whether employees are salaried or hourly – the right software will enable all payroll processing to take place in-house.
2. Getting strong ROI by using reports effectively:
There will always be plenty of reports available to analyze, but getting good value from them hinges upon pinpointing and using the most relevant data for each company. Automated payroll system reports provide specific data that can be used to increase efficiency throughout a company. For example, having a clear, precise summary of employee hours worked and over-time usage can be used to identify areas where processes and work-flow can be streamlined.
3. Staying compliant:
A real-time, automated payroll system can manage all compliance and payroll management issues, keeping the company current with ever-changing legal and tax regulations pertaining to equal opportunity employment, veterans, Affordable Care Act, and other policies.
By opting for a solution that provides the best accuracy, reporting and compliance tools for payroll and human resources functions, a company can have a system that handles payroll while helping the business grow. Learn about more features capabilities available with an updated payroll automation system.