You should consider many things when choosing the payroll software that is right for you. While many of these are common considerations, there will be some that you need to consider if your company is unique or in the industry you work in.
You may be wondering where to begin. Here are 10 things you should consider and some advice to help you make the right choices.
- Numerous companies and users
How many companies do you need to process of Payroll Software if your business processes Payroll for multiple clients/companies? You should ensure that you get a license for the software you buy.
If you want to manage Payroll for your company and install the software on a server so that multiple users can access it from any location, make sure you select a payroll package with a license that allows this.
How many employees are required to process the Payroll this year? This figure should be adjusted to account for seasonality and any resulting staff.
Include starters and leavers as well. If someone leaves, they will need their details to remain in your payroll software for the entire year. They will also need to be included in year-end reports.
Many payroll solutions are priced and broken down by employee numbers bands. Therefore, it is important to keep this number in mind when looking for potential suppliers.
- Types and frequencies of Payroll
What frequency do you need employees to be paid? Are you paying employees weekly, monthly, or every two weeks? Are all employees paid the same way? Or are there some employees who get paid every other week or monthly? This is something to consider.
What type of Payroll do you use? Are employees paid an hourly or an annual salary? You should ensure that all potential payroll solutions can handle the payroll frequency and type you require.
Consider how holidays are calculated for employees. Do they get a fixed number of days per year, a third or a percentage of working hours? You can use payroll management system to help you track holidays if it is a manual task.
- Different types of payslips you can use
Are you going to print out payslips for your employees? If yes, which stationery type will you use to print the payslips? Calculate how much this will cost you each week, month, and year.
You should also consider whether you will be using security payslips or if regular payslips will need to be placed in envelopes. Do you need to send payslips to employees? Be sure to include the cost of envelopes and postage.
Or, could you email employees your payslips? Do the payroll software options you’re considering allow you to secure email? This should be checked.
- You require a certain level of analysis
Are you able to compare payroll costs between different departments within your business? Are you also required to assign payroll costs to different cost centers within the business?
If this is the case, make sure that any payroll software you are considering can perform the required level of analysis and produce reports based on it.
- Respecting the law
Besides the standard payroll law, are there other laws that your company must comply with? It is important to consider whether any software packages you are considering will be legally compliant.
The Construction Workers Pension Scheme is one example of legislation that might need to be addressed by a payroll package.
- Integration of payroll software with other solutions
Are there any accounts packages you would like to link with your payroll software? Are you able to import data from other software or spreadsheets into your payroll software? Are you looking to integrate with a clock-in or biometric system?
These are all important areas to consider when selecting a payroll package. Ask suppliers for information about import and integration options.
- Which payroll packages did you use before?
Are you familiar with any payroll programs used in training or employment? What were your experiences with them? Would you use them again?
You can start by using software that you are familiar with. You can also think about why your next package might not work as you require it to.
- Are you mobile?
A cloud-based payroll software solution might be the right choice for you if you need to process Payroll in multiple locations or want to access it from your mobile device.
Cloud packages offer you remote access and often allow you to pay monthly. This allows you to spread out the cost of your software without having to make large upfront payments.
- Do you want to try it before you buy it?
You can test out a range of payroll packages before buying, especially if you’re considering one that you don’t know much about. This will allow you to compare it with your needs and confidence that it will work for you.
Many service providers offer a free trial period that allows you to try out the software and decide before purchasing.