Small business payroll software streamlines HR tasks and ensures compliance, saving time and money.
Find an affordable solution that provides easy access to detailed reports and analytics. It should also be scalable as your team grows. Many vendors offer a free trial.
Determine Your Needs
A sound payroll system makes running paychecks easy and reduces the chances of human error. However, choosing the right tool for your business can be a complex matter of checking off features or determining the price point. First, you have to assess your needs.
Typically, a small business payroll system is used to automate and streamline the process of calculating employee pay, filing taxes, and managing other payroll-related tasks. It also provides access to more detailed data for analysis and insight.
A reliable system should be user-friendly so staffers can get started quickly and without much training. It should also be able to handle non-traditional compensation, such as workers’ comp, vacation pay, bonuses, and commissions. Additionally, the software should enable direct deposit so employees can receive their paychecks directly in their bank accounts instead of waiting to cash paper checks. Other essential functions include tax filing and compliance, which helps prevent fines from the IRS. And it should integrate with other accounting and HR tools to further streamline processes. The best systems offer customer support through phone, email, or live chat.
Payroll isn’t just about giving your employees their paychecks. It also requires calculating and documenting deductions, keeping track of taxes and compliance, and ensuring accuracy to avoid costly IRS fines. For these reasons, many use small business payroll software to streamline their processes and save time.
When comparing payroll solutions, look for one that offers features and pricing that support the needs of your business. You should be able to compare base prices, per-employee fees, and a variety of add-ons such as direct deposit, tax forms filing, and new hire reporting.
Once you’ve selected a software solution, you can start by setting up your employee information and banking details. You can also determine the day of the week, the frequency you want to process payroll, and how your team members prefer to be paid (paper check or direct deposit). You may need to enter your employee’s federal allowances from their W-4, state withholding, and Social Security and Medicare contributions. Once these are entered, the software calculates the gross pay and determines deductions to create the net pay.
Set Up Your Account
When selecting a payroll tool, consider how easy it will be to set up for the first time and navigate the interface. Look for a guided setup process that walks you through entering your company information and adding employees to get started. Similarly, you should expect your chosen payroll service to have tools for importing data from previous paychecks.
Another feature to keep in mind is the scalability of the software. Your small business may grow, and you’ll need to know that your new payroll tool can handle additional employees and more complex payroll deductions.
Finally, consider whether the platform is mobile-friendly. If your staffers are often out of the office, you want them to be able to access the system from their phone or tablet. Many small business payroll solutions have mobile apps that simplify for employees to clock in and view their payslips. They can also use these apps to report sick days or PTO and communicate with managers. Homebase, for example, is an excellent choice because it offers scheduling, time tracking, messaging, and hiring tools in one place and is easy to use on any device.
Add Your Employees
Payroll is one of the most critical aspects of running a business. Not only does it ensure that employees get paid on time, but it also complies with federal, state, and local tax laws. If it’s not done correctly, companies can face expensive fines.
If you’re new to payroll, consider hiring a professional to help set up your system. It’ll save you time and money in the long run.
Before you begin, make sure that you have the following information ready:
An Employer Identification Number (EIN) is essential for any small business. You can obtain an EIN from the IRS website. In addition, you should know your gross pay for each employee, which is calculated by multiplying the total number of hours worked in a given period by an employee’s hourly rate. It would help if you also determined deductions, allowances, and other withholdings.
Pay Your Employees
Payroll is a big responsibility that takes time and attention to get right. Your team is counting on you to pay them well, which makes it essential to keep up with quarterly tax filings and payroll deadlines. Payroll software helps you stay organized, automating many calculations and deposits so you can focus on running your business.
Choose a provider known for customer support and a quick turnaround on questions. You may need more time to get answers as a small business owner. Also, look for a solution that can integrate with other business management tools to help you streamline processes and reduce manual data entry.
Check out top-rated payroll systems. Or, see how an excellent choice for your small business is by scheduling a one-on-one demo today. Just click that link and enter your information to compare prices and features of different top-rated payroll software solutions. You’ll also find helpful comparison charts for ease of use, cost-cutting payroll features, and other vital benefits.