How to Choose the Best Payroll Solution for Your Business

Choosing a good payroll solution is an important investment for businesses regardless of size. An inefficient and complex system may cost you money and time.

If you depend on manual techniques, being compliant with various payroll laws across different places in Singapore is a great challenge. Multi-team coordination and accuracy also suffer without using digital payroll software.

What Payroll Software Is

Payroll software effectively enables HRs and businesses to automate, manage, and maintain worker payments. According to experts at BoardRoom, payroll software is a central management solution that helps maintain compliance, reduce errors, and speed up payroll processes, thus allowing your business to maintain unified business operations.

Why Use Payroll Software

Like with other automated solutions, the payroll system eliminates human error. If your business accountant or HR manager processes salary transfers, there is a high chance that they can make mistakes somewhere down the road. And relying on the gravity of mistakes might become expensive for your business.

But if your payroll solution automatically processes salaries every month, then the mistake isn’t something you should worry about. Laws around payroll that vary from different places in Singapore are subject to change. Your finance or HR department may have to be on top of those regulations if they decide to process wages to avoid litigation manually. If your business invests in an effective payroll solution to automatically do this, your workers won’t assume that extra burden.

Choosing the Right Payroll Software

The use of a payroll system makes processing a lot more effective. Automation will replace the time-consuming manual process, increasing the accuracy of payroll and reducing error frequency.

But before a business implements payroll software and enjoys its perks, they need to decide which solution they should use. With many payroll solutions, choosing the best won’t be simple. You will have to consider the following to make the right decision:

1.       Assess the Needs of Your Business

Payroll processing solutions have a different capacity. Some are ideal for established and large businesses with around 1,000 workers, while others specialize in serving businesses with workers less than 12.

Most software providers will charge you a fee per worker. Hence, having those figures ready can guide you in determining the total costs.

2.       Use Free Trials

Although payroll solutions seem suitable on paper, you may need to test them to make sure they can meet all your payroll needs. If you want to weigh the number of payroll solution options, sign up for a free trial.

The usability and features of free trials are usually limited, but they can still offer you basic tools to decide whether the system can keep up with the demands of your business payroll.

3.       Consider Customization

Organizations are created differently. Perhaps your business has unique requirements or simply wants the freedom and flexibility of custom options. Find a payroll solution, which guarantees customization. This way, you will do business the way you like through a customized dashboard and deliver customized reports C-levels and managers would want to see.

4.       Look at the Features

Apart from payroll automation, many solutions with independent contractor payments. Some offer portals so freelancers can securely enter their tax and banking information. Payroll systems have a mobile app for self-service. In some situations, employees may view their year-end tax forms, pay stubs, and PTO (paid time off) balances. Other payroll software features may include the following:

  • Labor and wage reports
  • Integrations
  • Penalty-free guarantee
  • Year-end taxes

5.       Compare the Cost

With your business needs and an outline of the features in a payroll solution you want, gather a list of vendors who may provide those features. There will be quite several providers who may offer what you want, but one aspect you shouldn’t overlook is pricing.

Compare vendors on your list to determine which software best fits your budget and financial plan. Choose a solution allowing you to go with a basic payment plan, and you may then flexibly go up with the plan as the needs of your business increase.

6.       Determine the Number of Users and Companies

If your company does payroll for several clients and businesses, how many different organizations will you process payroll for? It can be vital to ascertain that any solution you buy has a license for the expected number of businesses.

Similarly, if you are planning to manage payroll processes just for your business and want to set up a system on a server to enable several users to access it through a remote or local network, make sure you choose a solution that allows this.

7.       Check Customer Support

Using a payroll solution means that you will have total control over the payroll process. But you shouldn’t be alone whenever you have questions and concerns. A provider that offers solid customer support will help your in-house team overcome different challenges, which may create a barrier to paying your workers on time.

Always look for software that can support you every step of the way. Some software provides support online, while others cover phone calls or both. Based on your personal preference, consider factoring in the type of customer support you will get as you assess your options.

8.       Prioritize Tax Compliance

Compliant is a headache in itself. Choosing a solution that has done the compliance work on your behalf and keeps up with constant regulation changes will cure that headache.

The best payroll solution will give you peace of mind when it comes to compliance deadlines. Some payroll solution providers even offer guarantees, giving you confidence that you are covered in case issues arise.

The Takeaway

That pain of starting things over with a new solution will be enough to justify prolonging the pain of clunky payroll processes. However, right now, all you should do is start looking. Whether your priority is integration with your current system or stellar customer service, the right solution will get you running with new services, more efficient and happier than ever.