For anyone who is employed, payday is a very exciting day for obvious reasons. However, for the employers, it is not as exciting. The reason for this is because organizing a payroll is not an easy task as many would like to assume. Organizing a payroll takes time and a lot of work. You have to keep track of the number of employees; each employee’s working hours and the amount payable per hour, taxation and all the things that have to be factored in to determine the amount that will appear in each employee’s paycheck. Innovators have taken into consideration all the work that goes into organizing a payroll and come up with software that can be used to lessen the workload. Payroll software for small businesses has been developed to do all the work and to ease the burden of the employer.
Organizing a payroll annually can take up to five hours or more. This does not include the time that you spend in preparation of tax preparation. Needless to say, this time can be utilized doing other important business-related things. Payroll software for small business is designed to take only five minutes to perform tasks that may have been done in hours. This gives you more time to focus on running the business and growing it.
Mistakes made on the payroll automatically lead to mistakes in the annual tax preparation which may result in significant penalties from the IRS. This is because these mistakes are reflected in the business’s employee’s taxes. Using payroll software can help avoid this. This software is also updated regularly in order to stay in touch with changes in federal taxation laws. There are several companies that have come up with their own payroll software. Before deciding on the best one for your business, you have to consider the following.
What you are looking for in a payroll software is the ability to calculate and fill payroll taxed, develop the payrolls, file new forms for new employees and pay the staff on time. The best payroll software should be able to perform most if not all of these functions automatically in certain settings.
There are not two or more businesses that are completely similar. When it comes to running payrolls, there are businesses that do so on a monthly basis and some weekly. Some companies offer bonuses, benefits and even make charitable donations from their employee’s paychecks. Therefore, the software must be customizable to fit the business using it in order to avoid the admin to perform most functions.
Simplification on Taxation
Filing taxes is a heavy task. Payroll software should be able to simplify this task and help in making the task easier, especially the end-of-year accounting.
Integration with other software- the software should be flexible. The business may decide to have it accessible to more than one individual, for instance, the owner and the HR. The need to have it integrated with a tracking or accounting software may also arise. It can also be made accessible to the employees via an employee portal.