Comparison: Top Five Payroll Processing Solutions
Top 5 Robust Payroll Processing Solutions
The ever-increasing automation of key business processes and outsourcing of non-core functions have revolutionized the way businesses are run today. The focus of the managers has moved from management of tasks to spending more time on activities that add value to organizations such as process improvements.
The early automation of accounting functions helped improve access to data. Financial modeling solutions developed in the 80s and 90s led to fundamental changes in the roles of Finance Directors and Chief Financial Officers.
Now, the attention has moved over to areas for improvement in managing human resources. Roles of the top executives of HR seem to have undergone a major makeover and you find them spending more time to attract, recruit, develop, manage and retain talent, assessing the workforce’s need for skill upgrade and in developing and implementing plans to address them. This a major shift from the way HR has functioned until sometime back. The key considerations now are the development of insight and value creation. HR’s role has become more strategic and all thanks to automation, the HCM systems allow the HR to escape the bureaucratic grind has helped them evolve into a decision-maker.
Business trends and automation have enabled widening of the net to analyze and dissect new business areas that are to be made answerable for the strategic value they impart, and not just the efficiency of the practical, day-to-day and administrative exercise of their duties. Companies, irrespective of their size of operation, should have an established and strong payroll system.
While the task may seem mundane, there are several complex aspects to it, like tax and other statutory deductions from each month’s pay, and ensure timely deposits of those deductions to the rightful government body.
Some of the deductions are as follows:
- Income tax
- Social security tax
- State income tax
- Local tax withholdings
- Health insurance
- Dental insurance
- Charitable contributions
- Compulsory savings
Why do you need a software solution to process your payrolls?
Payroll processes can give rise to a tremendous burden and unsolicited strain among small business holders. They can be penalized for legal offences such as not fulfilling a statutory obligation, missing a tax deadline, providing incorrect data to the authorities and for erring on deposit of tax amounts deducted from employees’ pay packets. Small and mid-sized businesses would do better to choose and use payroll systems that comply with all aspects of taxation and laws of the state their work premises are in.
For larger companies, too, payroll applications will help them to eschew mistakes and keep all aspects of payroll streamlined and consistent.
Large businesses were once smaller businesses, and like all small ones, a payroll system in some form would have been in use. Once a business grows into a larger enterprise, the payroll tool useful thus far may prove inadequate and necessitate a changeover to a more current and professional system.
A payroll system collects and collates all of employee payment related data such as actual hours that the employee has put in, pay commensurate with the work, taxes payable on the pay and other deductions. Employment taxes to the government too can be managed with the software.
Payroll software usually requires minimal input from the employer. The employer is required to enter employee hours and salary information, after which an automatic calculation is made by the software about the information including withholdings. A majority of payroll software solutions are synced and updated by default each time there is a change in the tax law. Further, it will send timely reminders to employers for filing various tax forms.
Choosing your Payroll Solution
Picking out the most suitable payroll system for your business is a challenge. Deciding on the right solution for your firm will be a difficult task since the market is crowded with robust payroll software. However, there are a couple of factors to be taken into account before making the decision. First, gauge the size of your organization and the portion of your budget that has been earmarked to spend on payroll processing
Is it possible for small businesses to take care of payroll in-house without the aid of software solutions? Of course, Is it possible that by manual processing the business would lose a lot of its valuable hours? Most definitely. One slip-up in calculation is all it takes for the enterprise and its holders to land up in a legal and financial mess. A business at least the size of hundred employees would be wise to invest in a top-notch payroll system.
When choosing payroll systems, managers should consider the following items concerning ease of implementation:
- Whether data from the existing system can be imported or will have to be manually entered?
- Whether or not the vendor offers implementation services and consultation?
- How many labor dollars will be committed to implementing the new system?
- Should the old and new systems be run side by side for a period to identify and correct errors?
Paychex owns the oldest online payroll service SurePayroll founded in 1971. Paychex Flex, the solution under consideration here is the latest product from Paychex’s stable. Paychex Flex is a comprehensive payroll and HR solution, and payroll solution is offered as a standalone too. Scalability, easy usability and customizability of features make it one of the better products in the market.
QuickBooks is popular accounting software for small businesses. Business News Daily has chosen Intuit as the Best Online Payroll Service for small business overall for the year 2016. The payroll solution can fulfil all statutory requirements, like all taxes payable. In case the company is made to penalty for delay in filing returns or incorrect returns attributable to the software the Quickbooks will make good the losses to its client. Before implementation, Intuit sends its person to feed all the data and information into the system. The application can all process and print employees’ yearly income tax form.
3. ADP Vista HCM
ADP, based at Chennai, India was founded in the year 1949. They are anend-to-end international cloud-based Human Capital Management (HCM) solutions provider. The solution integrates the functions of HR, payroll, talent, time, tax, and benefits administration. ADP is a leader in business outsourcing services, analytics and compliance expertise.
4. CheckMark Payroll
This not too complex, simple product performs all the functions found in more expensive systems, and comes at an impressively low price. Payroll processing, check printing, and tax processing get done in very quick time. The application lends itself to easy customizability for income tax and deductions. Payment by either direct deposit or print cheques straight out of the program is in there as additional feature. E-filing for W-2s, and W-3s to SSA too are available.
CheckMark Payroll software is recommended for use in small and mid-sized companies up to five hundred employees.
5. TeamWise from Trogon Soft
Trogon Soft is a global Human Resources solution company providing HR software solutions and development services to its customers through leveraging technologies. Trogon Soft has its presence in India, United States and Europe.
Trogon Soft was founded in 2009 and works from its head office in Jaipur.
So, which is the right one for my business?
What we have tried to do precisely is to identify the multiple factors that businesses successful with their implementations have considered for evaluation of a Payroll Processing tool. Evaluation based on the above discussed points may alone not help you to conclude on a product right for you. While these factors should definitely be part of your evaluation process you should also consider whether this tool will be able to adapt to your current methods of running the operations in its entirety and whether it will work in compliance with your country’s taxation regulations.