Payroll Software: The Top 5 Benefits

Meet the everyday payroll manager, surrounded by mountains of timesheets and employee records, tirelessly crunching numbers for wages, deductions, and taxes. This image, a testament to the not-so-distant past, is swept away by the rising tide of payroll software systems.

Payroll software is revolutionizing business operations, making the arduous task of manual payroll calculations outdated and inefficient. This new-age technology, an amalgamation of accuracy and efficiency, is fast becoming the backbone of modern payroll departments across the globe.

Introducing payroll application software is a technological leap and a strategic business move. Businesses are reaping the benefits of increased productivity and cost savings by significantly reducing human error and time spent on administrative tasks.

In the following sections, we will delve deeper into the transformative world of payroll software, highlighting its significant benefits and helping you identify the best payroll and HR software for your business needs. 

Throughout the article, we’ll discuss: 

• What Is Payroll Software?
• Top Features of Payroll Application Software
• Application of Payroll Software in the Current Business Landscape
• Top 5 Benefits of Having Payroll Application Software
• Best Payroll and HR Software for You to Consider
• Revamp Your Payroll Software System with Time Tracking
• Final Thoughts

So, sit back and join us as we navigate the world of automated payroll processing.

What Is Payroll Software?

Payroll software is a computer application that automates the calculation and administration of employee paychecks. In addition, it can track hours worked, tax deductions, and other payroll-related information. Most payroll programs can also interface with accounting software, making generating invoices and other financial documents easy.

It can be used on-premises or in the cloud, and it integrates with other business systems to ensure accuracy and compliance. For business owners, a sound payroll system should be reliable, easy to configure, and flexible enough to handle different worker locations worldwide.

Top Features of Payroll Application Software

Payroll application software plays a vital role in modern businesses by simplifying and streamlining payroll operations. Let’s delve into some of the key features that make these software systems essential for companies today:

1. Automated payroll processing: This feature allows businesses to automate wage calculations, tax deductions, and payments, thus reducing manual labor and errors.
2. Tax management and filing: Payroll software can automatically calculate and deduct employee taxes, prepare tax forms, and electronically file them to the appropriate government agencies.
3. Time and attendance management: This includes tracking employee work hours, overtime, leave, and absences, directly feeding into the payroll processing system.
4. Direct deposit capabilities: Payroll software can facilitate direct deposit, making it easier and faster to pay employees and reducing paper waste.
5. Benefits administration: This feature helps manage and track employee benefits such as health insurance, retirement plans, and paid time off.
6. Reporting and analytics: Payroll software provides comprehensive reports and analytics on payroll costs, taxes, employee compensation, and more, aiding strategic decision-making.
7. Employee self-service portal: This feature allows employees to view and manage their payroll information, reducing the workload of the HR department.
8. Compliance management: Payroll software helps businesses comply with labor, tax, and employment laws, reducing the risk of penalties.
9. Integration capabilities: Payroll software often integrates with other business systems like HR, accounting, and time tracking software, enabling seamless data flow and comprehensive business management.
10. Secure data storage: Payroll systems provide secure data storage and backup options, ensuring that sensitive employee and company data is safe and accessible.

These features highlight the significant ways in which payroll application software aids businesses in managing their payroll operations efficiently and effectively.

Application of Payroll Software in the Current Business Landscape

Business owners are shifting from manual payroll to payroll software for multiple reasons. Employee timekeeping errors, incorrect pay rates, missed deductions, and inaccurate payments are a few potential mistakes to avoid. It also consumes time that could otherwise be used to generate more business.

Today, many different brands and types of payroll programs are available. Some are stand-alone applications installed on a personal computer or network server. Others are web-based applications that one can access through a web browser from any computer with an internet connection.

No matter what type of payroll software is implemented, it typically performs the same essential functions: calculating gross pay, deductions, taxes owed, net paychecks; creating reports for management; issuing payments via direct deposit or check printing; and tracking employee hours and absences. In addition, many payroll software programs provide features for automatically generating W-2 and 1099 tax forms.

The main factor contributing to payroll software popularity in the current business landscape is its ability to reduce processing time. It can automate many payroll processes, including calculating wages and deductions, printing checks, and issuing pay stubs. These features save time and improve accuracy.

By automating the wage calculation process, payroll software reduces the time it takes to process paychecks, leading to faster employee payments and curtailing administrative costs for employers. Some payroll programs can minimize processing time by automatically importing employee hours from time tracking software. Additionally, some software can automate tax calculations and filings.

Thus, payroll software can increase efficiency by automating many tasks that would otherwise need to be done manually. This feature dramatically speeds up the process and reduces the chances for mistakes.

Top 5 Benefits of Having Payroll Application Software

Now that we understand what payroll software is and why it is flourishing in the business world, we will discuss the top five benefits of having payroll programs in your business structure.

1. Go Digital for Ease

One benefit of payroll software that is rarely considered is reducing the need for paper payroll. Many businesses have switched from paper payroll to digital payroll services in this digital age.

A payroll service eliminates most of your paperwork, but not all of it. Therefore, paying close attention to the payroll service agreement is essential to discern if you are still responsible for providing certain information, such as employee W-2s and 1099s.

But with payroll software, not only does it reduce the need for paper payroll, but it also automates the entire payroll process. Not to mention that getting rid of paper and going digital means having a more eco-friendly business, which is always a good thing!

2. Ensure that Your Company Complies with State and Federal Regulations

Another benefit of payroll software is that it helps businesses comply with state and federal payroll regulations. The software will help you keep track of all the tax rates and withholdings for each employee.

Specifically, payroll software can help payroll departments calculate the Social Security tax rate, Medicare tax, and Federal Income tax. With payroll programs, payroll managers won’t have to worry about calculating payroll taxes by hand, a tedious process that demands accuracy and precision.

Payroll software is designed to help businesses automate their payroll processes while remaining compliant with all applicable state and federal payroll regulations, so you won’t have to worry about payroll compliance. In other words, payroll programs allow companies to comply with payroll regulations, which is a huge benefit!

In addition, payroll programs can support businesses in preparing and filing payroll tax returns. Again, this is a massive time-saver!

3. Avoid Costly Errors and Be More Accurate

A third top benefit of payroll software is that it helps businesses avoid expensive errors. These mistakes can cost companies way too much time and money. Payroll programs can help you avoid these mistakes through automation. This means the payroll software will do all the calculations for you and guarantee that payroll is accurate and up-to-date.

With payroll software, payroll managers won’t have to manually enter payroll information, saving you money for their labor. And as mentioned above, payroll software can help save you money by avoiding costly fines when your business complies with state and federal payroll regulations.

Not only do payroll programs prevent you from losing precious resources like time and money, but they can also contribute to your most precious resource, your health! So you can imagine the weight off your shoulders when you have a system working for you.

4. Have Happier and More Productive Employees

Being happier and more peaceful can contribute to everybody around you, including your employees. Indeed, having more satisfied and more productive employees is another benefit of using payroll software.

By automating the payroll process, payroll software helps payroll managers save time they can devote to other tasks. With time being a limited resource for businesses, payroll managers should try to streamline their payroll processes and save as much time as possible.

And everyone knows that when employees’ efforts are going toward tasks that forward the business’s success, they feel more valuable. Not to mention that they are happier when they are paid accurately and on time, making them more productive and effective. In other words, payroll programs can help businesses have more satisfied and productive employees.

5. Customizable to Fit Your Needs as a Business Owner or Manager

The fifth benefit to payroll software is that it is customizable to fit the needs of your business. Indeed, there are so many different payroll software out there; you will have no problem finding one that suits your company’s specific needs.

Not only can you automate payroll processes, but you can also design timelines and payroll templates that work best for your business. Payroll programs should always be customizable to fit your needs as a payroll manager.

This way, payroll managers can fulfill the tasks they need to accomplish how they are meant to be done. It also helps payroll managers get accustomed to the software more efficiently, increasing their likelihood of continuing to use it. The payroll software’s integration to the company becomes more organic, leading to better and more fruitful results.

Bonus Benefit: Mobility And Accessibility

In addition to the benefits mentioned above, the latest improvements in payroll programs have caused them to be way more user-friendly. For example, they are now compatible with most devices, including tablets, smartphones, and computers.

Mobility is essential in this day and age, where remote working is becoming more common. This feature allows payroll managers to move their payroll software wherever needed. For instance, payroll managers can run the software from the comfort of their home or office, even while on vacation overseas. Mobility like this also allows access to payroll information at any time. This is an important feature, primarily if employees work in multiple locations.

Best Payroll and HR Software for You to Consider

When searching for the correct payroll and HR software to meet your business needs, several options are available. The key is determining the specific features and functions you need in a system. Below are some of the most popular software packages available on the market today:

1. ADP Workforce Now – Comprehensive HR and Payroll Application Software for Small to Large Businesses 

ADP Workforce Now is a complete, cloud-based HR suite designed to simplify and streamline HR operations for businesses of all sizes. This robust platform delivers payroll, benefits, talent management, compliance, and employee time-tracking, all in one place. Its strength lies in its scalability, making it a suitable choice whether you’re a small business or a large enterprise.

Features

• Comprehensive payroll processing and tax filing, with accuracy guarantees.
• Benefits administration, enabling employees to select and manage their benefits.
• Talent management, with tools for recruitment, onboarding, performance management, and development.
• Time and attendance tracking, including scheduling and absence management.
• Compliance management, with updates for labor, tax, and employment laws.
• Reporting and analytics for insights into HR and payroll data.
• Self-service portal, allowing employees to manage their HR tasks.
• Time tracking integration with Day.io

Pricing

ADP Workforce Now offers customized pricing depending on the features you’ll use and number of employees. 

2. SAP SuccessFactors – Cloud-based HR and Payroll Software System to Work with SAP Suites

SAP SuccessFactors is a comprehensive, cloud-based HR solution that integrates with other SAP suites. It’s designed to optimize HR processes, drive strategic growth, and produce real-time insights into the workforce. Its globally compliant payroll module provides localized payroll processing in 45+ countries.

Features

• Global payroll management, with localized payroll processing.
• Core HR and benefits, including HR record-keeping, benefits administration, and compliance.
• Talent management, with recruiting, onboarding, learning, performance, and compensation solutions.
• Employee experience management to capture feedback and improve engagement.
• Workforce planning and analytics to inform strategic decision-making.
• Integration with other SAP solutions for seamless operations across the business.
• Connects with Day.io for time tracking

Pricing

SAP SuccessFactors pricing plans start from $6.3 per user/month. 

3. QuickBooks Online – Easy to Use Payroll Software to Manage Time and Budget 

QuickBooks Online is a user-friendly payroll solution integrating the broader QuickBooks accounting suite. It’s particularly suitable for small to medium-sized businesses that need to streamline their payroll processes. In addition to payroll, it provides time tracking, benefits management, and compliance tools.

Features

• Easy payroll processing, with automatic calculations for taxes and deductions.
• Time tracking allows employees to log hours directly on their devices.
• Benefits management, to manage and track employee benefits.
• Compliance assistance with filing and payment of federal and state payroll taxes.
• Reporting and analytics to understand payroll costs and trends.
• Integration with QuickBooks accounting for a seamless financial management experience.
• Mobile access allows employees and managers to access payroll information anywhere, anytime.
• Time tracking support with Day.io

Pricing

• Simple Start: $18 per user/month
• Essentials: $27 per user/month
• Plus: $38 per user/month 

Revamp Your Payroll Software System with Time Tracking

Efficient payroll management is crucial for business success, but integrating a specialized time tracking system is key to maximizing this efficiency. Although most payroll systems have some form of time tracking, they often need to catch up to the advanced capabilities of dedicated time tracking software.

Specialized time tracking solutions provide in-depth, flexible methods to manage employee time, offering advanced functionalities like real-time tracking, project-specific timesheets, and comprehensive analytics. Pairing such a system with your payroll software can lead to increased accuracy in compensation, better oversight of project timelines, and a deeper understanding of employee productivity.

Day.io – A Premier Choice for Time Tracking in Small Businesses

Day.io stands out as an intuitive, feature-rich time tracking solution that enhances the functionality of your payroll software. With its ease of use across multiple devices and powerful features, Day.io empowers businesses to manage employee time effectively and elevate payroll processing.

Features

• Easy integration with various accounting, project management, and ERP solutions, promoting seamless business management.
• Robust security protocols featuring digital signature management and secure cloud storage.
• Advanced time tracking with GPS and biometric authentication processes, ensuring accurate and secure data.
• Detailed project reports, providing valuable insights into business operations.
• Customizable timesheets that simplify and automate payroll management.
• A flexible drag-and-drop interface for easy employee shift scheduling.
• In-depth cost and billing reports and analysis, offering clear visibility into project profitability.
• An intuitive time clock that’s compatible with various mobile devices and platforms.
• A streamlined process for applying and approving overtime and extra hours, reducing administrative work.

Pricing

• Time & attendance tracking: $4 per user/month
• Project time tracking: $6 per user/month

Both Day.io packages support various integrations. 

Final Thoughts

Payroll software has revolutionized complex procedures, streamlining them into automated tasks. This powerful tool is seen as a strategic investment, offering features that promote efficiency and cost-effectiveness. 

Not only do businesses benefit from these systems, but employees also enjoy increased transparency and equity in the workplace. With so many advantages, it’s easy to see why payroll software is an attractive option for businesses seeking to upgrade their operations. 

Optimize your payroll processes even further by pairing your software with Day.io’s cutting-edge time tracking solution – unparalleled precision and productivity are guaranteed! Ready to take your payroll processes to the next level? Start your journey with Day.io today.