If you are reading this, you probably know that you are outgrowing your payroll software. In case you want some backup for your decision, here are some of the signs that it is time to move to a system that can handle your payroll needs better.
Growing employee pay needs
How you manage your payroll needs can grow as your company gets bigger. Maybe more and more employees require unique payroll wage garnishments, or you need to pay an employee for two different pay rates during the same day. These are the types of things basic payroll systems cannot handle, so many companies resort to handling the calculations by hand. If the time you are spending to manage these processes continues to grow, you are outgrowing your system and could benefit from a payroll system that could perform those calculations for you. Not only will you save considerable time, but also reduce the chances of manual entry errors.
Too much data
Some payroll systems slow down after several years, whether it’s from too many employees or years of history stored within the system. If your system is getting bogged down or locking up, these can be strong signs that it’s time to move to a more powerful payroll software. Waiting until the system crashes completely is not a good idea, since there is a possibility of losing all of your data.
Multiple state and multiple company
A growing business can extend to other states and grow into multiple companies. These two things can offer new challenges to payroll processing. Paying employees in multiple states means different tax rates, which can be difficult to track if your system doesn’t handle this. Payroll for multiple companies can be difficult, since you need to distribute the checks to the correct people in locations separate from where they are being processed. Also, some payroll systems do not allow for more than one company in the system.
If your payroll software is no longer supported, it is definitely time to move to something new. You likely won’t be able to get tax updates from the software vendor, leaving you to perform calculations manually. Also, payroll is too important to go it alone, without the option of speaking to a support team about any concerns you may have.
Outgrowing your payroll happens gradually over the years. Take note of these important signs; moving to something new can really help streamline and improve payroll processes.