Paychecks are the main motivation for your employees and incentives and bonuses are cherry at the topping. Payday is one of the most important days of the month for employees as most of them live from paycheck to paycheck and their entire month moves towards payday. It is best if you set a designated payday and stick to it so your employees know when exactly they will get paid and plan things accordingly. Besides most people do not appreciate uncertainties. Remember, they have important things planned they want to do with their pays like bills, doctor visits, car repair or buying something special for themselves or maybe they have promised a gift to their child. It is necessary that your employees consider you reliable when it comes to getting paid. If you happen to accidentally miscalculate their salary, they might feel cheated and this can hurt their job satisfaction.
Calculating the pays of your employees accurately is very important towards building trust with them however it is a very complicated and task if done manually. Some employ work on hourly wages while others work on commission-based salaries. There are allowances, medical aids, insurance, and incentives, unpaid leaves, loan installments, tax, and other deductibles like late coming or early leave deductions to account for. It all gets really complicated to do it manually and keep a record of everything every month.
As a business, you must pay corporation tax, file tax returns, and generate monthly reports. You need to have accurate data about salaries paid to employees for these files. Generally, businesses hire some employees to run the payroll process smoothly along with other accounting needs. Still, if these employees are working manually, it could be time taking and there is a greater chance of error, which most business owners do not wish to risk. With payroll software, you can get the job done with less manpower and more accuracy. Therefore, replacing manual payroll calculations with automated payroll software lowers the cost, and increases efficiency.
According to a recent study, 64% of business owners believe that their payroll process needs improvement. The most efficient way to speed up the payroll procedure so you can get the job done at the right time is to invest in payroll software. Getting payroll software is a smart choice to do all the payroll work in less time efficiently, instead of keeping huge files and spending valuable working hours in the calculation. Payroll software saves time and manpower as it is user-friendly and accurately calculates employee salaries with tax deductions. The software will assist you in storing huge data and track all operations related to the payroll process. Payroll software is able to assist you in generating several kinds of reports such as a monthly report, overtime payment report, and Taxation Report. Every country has its own computation for taxation thus; payroll software should conform to the local government regulation for salary calculation.
Features of a Good Payroll Software
Not all payroll software are made equal, some are obviously better than others. You can choose the right one for your needs by considering the following features:
Multiple Calculation Options
As different employees can be hired for different nature of jobs, their salaries can be fixed, commission-based, assignment dependent, or hourly wages. Such diverse calculations can drive a normal person crazy if done manually. Efficient payroll software will offer you flexibility in the ways you can calculate salaries for your employees.
All businesses and employees have to pay taxes. Good payroll software can calculate payroll tax information while preparing payroll for employees. This will save both the time and money of the employer.
Good payroll software will not only calculate the pays of your employees and taxes it will also generate and save reports for you. Depending upon software you will be able to generate several different reports like a monthly report, overtime payment report, and Taxation Report.
A great payroll should be able to send emails to your employees to notify them about their salary. This will create better communication and emails are a great of documenting the communication.
Multiple Payment Options
Sometimes employers deposit the payment directly into the account of employees, while other employers prefer to hand out cash or bank cheques. Depending upon your preferences your payroll software should be able to cater to different payment options.