The right payroll software can save your small business time and money, reduce compliance risks, and enable you to focus on growing your business. However, navigating the many payroll services available can be confusing.
A good payroll service handles your business’s finances reliably with little fuss, offers valuable insights and reports, automates tax calculations, and provides direct deposit options.
Features
The best payroll apps have the features you need to manage your business and meet the needs of your employees. These include core payroll functions like pay processing, tax management and direct deposits. The best payroll apps for small businesses will offer additional services like time tracking and compensation administration. It should also allow you to customize your payment schedule based on the requirements of your business. Some of the most important features of a payroll app are those that make it easy for employees to access their information and make changes on the go. This is especially important for remote workers. For example, if an employee wants to check their accrued PTO or their benefits, they must be able to do so easily. This will help to prevent frustration and disengagement. A good payroll app will access employee records on all platforms, including tablets and smartphones. Depending on your preference and the storage space you need, it can also store data in the cloud or on a hard drive. You should also consider the type of customer support a company offers. If there’s ever a problem, it’s helpful to have an IT support line you can call or an email address you can send a message to. Some providers also have customer service representatives available to answer questions in person.
Costs
The cost of payroll apps depends on the size of your business and the features you require. Payroll software is usually less expensive than hiring a full-time accountant or bookkeeper. However, some providers may charge extra for add-on services. These include time-tracking tools and built-in customer support. It would help if you also looked into whether the app offers HR add-ons, such as performance review guidance or employee onboarding tools.
Aside from reducing costs, a payroll app can boost your business’s efficiency and help you attract and retain the best talent. This is because employees want to work for a company that easily accesses their benefits. For example, if an employee is applying for an apartment and requires two months of paystubs, they would struggle to use without a quick and easy way to access their records. A payroll app can simplify this process, helping you become an employer of choice for top candidates. The right payroll app should meet your business’s needs and allow you to scale as you grow. It should also include a mobile app and integrate with your accounting system. Choose an app that lets you easily switch between administrator and employee accounts.
Integrations
Whether you are looking for a full-service payroll app or a standalone solution, several integrations are available to help you manage your business more effectively. These include everything from time tracking to HR support. You can also customize your software with a custom integration, which may require technical expertise and a higher cost. Integrating payroll systems allows your team to avoid duplicative data entry and saves you money. Moreover, it prevents data loss and lets you analyze your financials more clearly. It also helps you budget more effectively and deliver better data reporting to stakeholders. Most small businesses use multiple applications to process payroll and track employee time. If these applications are not integrated, there is a risk of duplicate data entries and errors. Combining these apps and using a single platform to process your payroll is the best solution. Payroll integrations enable you to track employee time and attendance in real time. This reduces the need for manual entries and allows you to make informed decisions about your workforce. In addition, they can also help you improve employee satisfaction and productivity. Moreover, they can help you streamline your processes and eliminate manual inputs, saving you valuable time each payroll run.
Security
A reliable payroll app should have security measures to ensure sensitive employee information doesn’t fall prey to unauthorized access. This includes both internal and external risks. External threats include hackers who exploit software vulnerabilities to gain unauthorized access to payroll data. Internal dangers can consist of employees who use unauthorized programs to access payroll data or who share passwords with other employees, whether out of curiosity or malicious intent. Look for a system that offers role-based access, allowing you to set user permissions and limit who can view specific information. It should also offer multi-factor authentication, an extra layer of protection that requires users to verify their identities through multiple methods to access data. Finally, it should encrypt data to protect against breaches and other security threats. When choosing a payroll app, it’s important to consider where it stores its data. Look for providers who use secure data centers that provide strict access controls and backup systems. They should also comply with local data protection regulations to prevent breaches and other violations of your business’s privacy. Other security measures when choosing a payroll app include laptop disk encryption, using a virtual private network (VPN) for remote work, and regular software updates to mitigate vulnerabilities. In addition, employees should be encouraged to position their computers so that unauthorized people cannot see the screen and to follow checkout policies, which include logging off the payroll system before leaving the office.