A business should calculate, store, access, and share all its financial transactions to carry out the necessary payroll processing. But the salary aspect of the accounting process is not a single-step process. It needs data from several sources, including tax details, benefits, and others. Timely processing of payroll determines the morale of the workforce and the reputation of the brand. The designated clerks or administrators use reliable payroll software to save time and resources while calculating employee data, wages, taxes, bonuses, etc.
The computation of legal wages also requires timekeeping records. The employees usually get paid on an hourly, daily, weekly, or monthly basis. Any flaws, errors, or miscalculations will invite heavy penalties or fines from the regulatory bodies. Thus, namesake software is not sufficient, and it might be counter-productive.
The company size and scope determines the quality of its payroll software. Some settle for free or open-source tools, while others have a dedicated payroll solution. The software price does not reflect its quality, but the list of features does. The benefit of a cloud-based system should not get overlooked in today’s globalized, dynamic marketplace. The best payroll solutions and services shall have these impeccable features:
1. Basic Calculation Tools
Calculating wages and taxes is not an easy task. Talented executives and accountants have to perform a wide range of computations, validate the inputs for correctness, and audit efficiency. The calculation involves attendance, performance appraisal, tax deductions, overtime bonuses, provident fund, etc. The final paycheck gets generated after double checking all the figures.
A reliable payroll software assists the accounting team in planning and managing the entire computational workflow. All the related processes get streamlined to deliver a flawless wage calculation. The automated solution simplifies the process using various formulae and algorithms for calculating wages, taxes, bonuses, incentives, paid vacations, and more. It helps the company save money, time, effort, and other valuable resources. Besides, computerized programs can also reduce business administrative errors.
2. Document Generation
Payroll management is not restrictive to mathematical and statistical calculations. The personnel has to maintain employee records. The workers’ personal and professional details have to get stored and retrieved with high security and simplicity. This data is necessary for several departments for filing, processing, or even for third-party verification.
The documents thus generated should be reliable, error-free, and secure. They can be digital files in PDF, DOCX, and TXT format, or they can be templates for proof of employment, salary increments, and performance appraisal. Company letterheads and email files for financial data transfer are also common. High-quality software will provide features to create such documents.
The benefit of a cloud-based system is evident in data management. It helps to manage timesheets, analytical files, and self-service reports. It facilitates the creation and transfer of numerous documents for employee groups.
3. Compliance Control
Salary calculations involve sensitive personal and financial details. All this data must be secure and processed without breaking the company rules and local and state regulations for wage limits and taxes.
Reliable payroll software has relevant features that ensure strict compliance. It ensures that the computations and payslips are legal, up-to-date, and satisfactory. The employees will have no reason to complain or raise tickets, as all the related processes are transparent and trustworthy. Compliance is a very complex and dynamic issue with periodic changes in the regulations.
High-quality programs support the user with flexible features to accommodate those changes. They can modify the wage allocation rules and adhere to all the latest taxation policies. Also, government guidelines get implemented without any mistakes. The software can also alert the user regarding compliance problems. This feature is essential for businesses that handle international currencies, bitcoins, and others.
4. Invoice Management
A convenient, fast, and sophisticated payroll system can offer this feature. It can automatically track attendance and leaves. The software can also generate, store, and transfer accurate, branded invoices.
The automated solution also keeps track of over dues and expenses. It accounts for credits, reimbursements, and all the spending approvals. Even remote workers can get quickly paid using the benefit of a cloud-based system. It also supports invoice workflows, online payments, and printed paychecks. It facilitates mobile-friendly invoices and speeds up the resolution of staff requests.
The payroll software caters to regular employees, part-time staff, and remote workers. The personnel also have self-service options to view and download the payslips with ease.
5. Customization Option
A general accounting solution offers standard features without any flexibility. Some free tools and mobile phone apps fall into this category. They are inexpensive and may satisfy the requirements of a start-up or small company. But mid-size companies and large enterprises need customization.
Reliable payroll software will have versatile features with customizing abilities. It not only automates the timesheets and attendance but also optimizes various operations. The program can get configured for single-click payroll runs, self-service, and custom employee components.
The solution offers standard templates for reports, bank statements, and statutory reports. And it also has customization features for earnings and deduction components.
6. Security Feature
Computing and documenting are very critical requirements for any small or large business. The process involves the generation of tax slips, payslips, documents, and other standard forms. It also requires the creation of digital files for easy sharing and access.
The benefit of a cloud-based system is the flexibility of data access without overlooking security. The employees can transfer or share data with ease. An employee can access those files with no regard to the location or time. Although the number of access points is higher, a good payroll software package can implement high-end security features along with back-up tools for data security.
This security feature also makes auditing easier. Since accessing the files is a simple task, it becomes easier to have a transparent payroll processing system, which improves morality and reduces politics in the workforce.
7. Software Integration
A reliable payroll software integrates well with the HR or ERP system. It offers flexible support for cross-referencing of vital data. The time, attendance, leave, loans, benefits, and personal details will now have a single data source. Such integration prevents data duplication, redundancy, and loss.
The integration ability is also essential for cutting down expenses. The automated solution saves time and money without compromising quality. It brings data coherence, thereby reducing risk, errors, and mismanagement of human resources.
8. Employee Portal
A self-service portal for authorized users can help the employees to check data, generate any reports, or get queries clarified immediately. Such employee portals should be accessible via desktop and mobile phones, without security loss.
Thanks to the benefits of a cloud-based system, the employees can check the yearly bonuses, unpaid salaries, deductions, leave encashment, and more. The complete employee and compensation profiles get stored online for convenient access. This web-based portal is also ideal for those who work from home. Some packages offer tools for payslip downloads and emailed leave requests. It also helps the HR teams flexibly configure and automate schedules for loans, reimbursements, and deductions.
It is not wise to pick the package with the maximum number of features. Remember that the number of features is directly proportional to the price. Thus, it is vital to understand your business needs and choose the right product.