Five Characteristics of a Good Payroll Management System

Payroll is an essential function in any organization, which is why it takes away most of the time for HR and finance teams of small and medium enterprises to be able to process payroll every month. Most of the companies do the process manually which makes it more time consuming, chronic and prone to errors.

However, with the installation of payroll software, the company hasn’t needed to do the manual work.  It has proven to be the most effective solution of an organisation, as it offers advantages in terms of time, cost and accuracy. It not only manages and simplifies payroll related tasks but also manages the task free from all errors and work efficiently.

Best payroll management software should have following features:

·         Payroll Processing- A payroll processing function is given in any payroll software. Most payroll software’s offer integration capabilities, such as linking the system to leave applications, timekeeping, overtime pay rates etc. This saves a lot of payroll processing time of the organization.

·         Tax calculation- Determining tax amounts for each employee is a basic payroll function. Any payroll management software should have the feature to handle federal/state/local income, social security, Medicare, federal and state unemployment and state disability calculations.

·         Direct deposit- Most of the organizations deposit monthly salaries and other payments directly into employee bank accounts which saves company’s time and money from having to issue paper cheques. A good dedicated payroll software must have bank synchronization and deposit capabilities which avoid risk of fraud and increase payroll department productivity all at once.

·         Security Controls- The payroll software contains all the confidential employees’ personal details and important payroll information. A robust payroll compliance system prevents data leak or loss of critical payroll records and employees’ personal information.

·         User-friendly interface- A good payroll software should be simple and easy to use which provides user friendly environment. It should also have feature of lesser maintenance costs.