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8 Things to Consider Before Choosing Payroll Software

Are you in the process of purchasing payroll software for your business? Selecting the right one is not as easy as you may think, especially when you don’t know exactly what you’re looking for. 

This article examines a few things you should know before selecting a software solution that meets your needs.

Accounting done the right way.

1. Number of Users

If you’re doing payrolls for different companies and clients, it’s important to consider the number of companies you’re processing for. Depending on the license, you must ensure your purchase covers the required number of companies and users you'll need.

If you intend to purchase certified payroll software for your company and allow multiple different users to access it from a remote location, you may want to consider a package deal.

2. Number of Employees

What’s the employee population you need their payroll processed for the year? Work out these numbers, and don’t forget to include the seasonality of the employees. The number of starters and leavers is also crucial as it remains in the software for the entire year and will be included in the end-year report. 

The number of employees will typically determine the price, so this must be considered when shopping for the best deal. 

3. Payslip Frequencies

What is the frequency of your employee’s payslips? Do you pay your employees daily, weekly, bi-monthly, monthly, or yearly? Do you pay all employees the same way, or do you pay some weekly and others monthly? 

Also, ponder the type of payroll. Are your employees paid on an hourly or salary basis, or is it a mixture of both? These questions are essential when considering one that can cater to all your needs.

Tracking and calculating vacation pay can be complicated. You’ll probably need one to help manage employee holidays and the complex calculations that come with them. 

4. Type of Payslips 

Will you email or print out the payslips? If you intend on printing them out, consider the stationery you will print on and how much it will cost you per month, week, and year.

Deliberate whether you’ll need to post the payslips to employees via postage and the cost of enveloping and postage.

If you prefer digital payslips, as many modern companies do, ensure that the payroll solution allows you to email your employees securely.

5. Compliance

Is there any legislation that your company needs to stay in compliance with? For instance, any pension plans that need to be accounted for on the payroll software? This question is essential to ensure you are legally compliant.

6. Integration Of Payroll Software And Other Solutions

You may have already invested in software to support your timekeeping or accounting. To make things easier for documenting, you'll want to ensure your new payroll software is compatible. That way, your investments don't go out the window, and the integration of the new technology can be seamless. 

7. Previous Payroll Packages

What is your experience with a previous package, and how did you like it? Would you consider using it again? If so, then a familiar one should do for you. And if not, then you might want to ask yourself why it didn’t work for you before to ensure the new package does what you need it to do and doesn't let you down the same way as the old one.

8. Testing Options 

You may have come across various packages that you are unfamiliar with. The best thing is to try them out before purchasing one. It allows you to evaluate your needs and choose the one you’re comfortable with. Most providers will allow you a trial period to test it before buying.

Time to Start Shopping

To avoid choosing something you might regret later, carefully consider the factors mentioned above. This way, you can rest assured that the investment you make in your new software will be well worth every penny and increase efficiency for your business.