As a business, you need to be concerned about payroll. Two very important groups of people are depending on you getting the payroll done on time and correctly: your employees for their pay and the U.S. government for payroll taxes. Therefore when you are trying to decide between several payroll programs, there are some extremely important aspects to make sure you get right. Read more about the most important considerations when choosing payroll programs.
If all of your employees are earning money in the same way, such as a basic hourly rate, then calculating payroll is not difficult. However, your company may grow to the point where different employee types require more complex pay calculations. Perhaps you need to pay via piece rate, where the employee is paid for each piece they complete. Or maybe you need to pay an employee for two different rates on the same day. These more complex pay calculations are the types of things that become hard to manage in a basic payroll program. Therefore, upgrading to a system that can handle more complex pay calculations can make your job much easier and ensure accuracy.
Payroll Tax Filing
If you process payroll, you are fully aware that you need to pay employee payroll taxes accurately and on time. This is not something to take lightly, since the consequences can be severe. Payroll programs do vary in their ability to file payroll taxes, so be sure that the way you need to file payroll taxes can be accommodated by your payroll program. Do you need to purchase the tax forms and then print onto them? Would you rather print them on plain paper? Perhaps you need to file electronically. Or maybe you simply want to outsource the whole process. Not all payroll programs can handle all of these tax filing scenarios. Before choosing a program, take this into consideration and be sure the system you choose can file in a way that is right for you and your business.
How do you need to pay employees? This is an extremely important question, since it can have a great effect on employee happiness, and can save (or cause) you a lot of hassle. Do some of your employees need to be paid with pay debit cards because they do not have bank accounts? Would you prefer to pay employees via direct deposit with an electronic pay stub because they are at remote locations? Maybe you just want to pay employees the old-fashioned way with a paper check. No matter your reasons, be aware that different payroll programs offer a variety of ways to distribute employee pay. Make sure that whatever program you go with, allows you to pay employees the way you need to.
Payroll calculations, tax filing, and pay distribution are three major considerations when regarding payroll programs. Not all systems are created equal; before you choose too quickly, be sure that the one you choose for your business makes the payroll process and tax filing accurate and timely.
Source: Red Wing Software