Payroll Software Has Become a Crucial Part of Small Business

Payroll has been an essential component of every business since the dawn of time. A business owner needs to be capable of paying its employees to stay in operation. Otherwise, the business will have no employees to perform its necessary functions. 

Modern businesses need every little advantage they can get in order to thrive. Small businesses in particular can’t spend a bunch of time working on side effects. It’s resulted in a change in the way that payroll has been completed. While payroll was traditionally done by the owner or top executive of the company, more and more businesses are upgrading to payroll software to make the experience easier and faster. 

What Is Payroll Software?

Payroll software is considered a type of digital application that one can use to organize, manage, and automate the payment of their employees. This particular type of software program is excellent at issuing payments, maintaining records, allowing for up-to-date alterations, monitoring attendance, and even storing tax information. Payroll software can streamline the payroll process for any business, big or small.

Benefits of Using Payroll Software

Upon learning what payroll software is, it becomes fairly clear how it can assist business owners with their necessary payroll tasks. This type of software turns tedious bookkeeping tasks into automated operations. All payroll software programs will allow the user to store vital information regarding each employee. This includes information such as:

• Name
• Address
• Social Security Number
• Hourly Pay Rate
• Overtime Pay Rate
• Direct Deposit Information
• Federal, State, And Local Tax Withholding

With the convenience of this stored information and the streamlined processes of a payroll software program, one will be easily able to send out direct payments to employees. Most programs offer self-service portals where your employees can easily logon to the software program and update information, such as their bank account number. This helps to limit the number of tasks that a company's HR department will need to deal with.

Another major benefit of using payroll software is that it allows a business to stay compliant with federal, state, and local regulations. Most payroll software providers will offer a guarantee where they constantly update their programs to be specifically compliant with new legislation that is passed. This helps to keep a business ahead of the curve and works to avoid any unnecessary compliance and legal issues regarding a business's payroll.

Popular Payroll Software

It doesn't take long for one to be convinced of the convenience of using payroll software. However, not all payroll software programs are created equal. Each comes with its own benefits and disadvantages when compared to others.

Gusto

This popular payroll software has become an instant favorite for businesses, both big and small, due to its full-service offerings and beautiful design. Gusto offers various monthly subscription plans, so each business can choose the features they need most. However, this software provider doesn't offer 24/7 support for users.

Pros:

• Automatic Tax Filing
• Unlimited Payroll Runs
• Beautifully Functional Design

Cons:

• Lacks 24/7 Support
• Basic Plans Two-Day Deposit, PTO, And Other Desired Features

RUN By ADP

When it comes to professional employer organizations, ADP is one of the most recognized brands out there. They've fashioned their own software service that offers HR expertise and payroll. RUN is considered a full-service payroll software that offers many of the modern conveniences that other providers make you pay extra for.

Pros:

• Offers Multiple Subscription Plans
• Backed By One Of The Biggest Name In PEOs
• Full-Service Basics of Direct Deposits, Tax Filings, and W-2 Submissions

Cons:

• Only Top-Tier Plans Offer Background Checks, Unemployment Deductions
• Prices Not Readily Listed On Their Website

Paychex

Another top contender for the most popular payroll software used by 21st century small businesses is Paycheck. This is a cloud-based payroll and HR solution that offers various subscription plans. Apart from offering the usual tax filing, reporting, and employee financial wellness programs, Paychex Flex offers a full 160 reports to assist business owners in understanding more about their payroll.

Pros:

• In-Depth Payroll Reporting
• Offers Comprehensive Add-Ons
• Offers Employee Financial Wellness Program

Cons:

• No Listed Pricing Online For Top-Tier Programs
• Cheaper Plans Can't Be Accessed Via Paychex's Mobile App