Table of Contents
- Introduction
- 10 Factors to Know When Choosing Payroll Software
- 5-Step Process of Choosing the Right Payroll Software
- Final Thoughts
When choosing payroll software, you need to know various factors that bear your mind, ensuring that it meets your needs. Based on the standard considerations on which you can operate with your specific industry together with your HR team easily and user-friendly. But as the market is filled with many options, where to begin?
Using this guide lets you know about the ten promising factors in choosing the payroll software that you need and making the right decision.
10 factors to know when choosing payroll software
Use of multiple employee types in a company
A multi-national company would have a mix of salaried, hourly employees and contractors. Employees are classified on the basis of their benefits, working hours, job types, etc., so the payroll software must also be customisable based on their specific needs.
Most of the payroll software systems offer options for full-time or contract employees, while some are flexible for any type of workforce.
In addition, some payroll software providers use self-service portals so that employees can manage their tax information, and view hours and pay periods.
Ability of Integration to integrate into other software
If you require payroll software to integrate with your HRMS, accounting software, or time-tracking software to share any information, then it is worth checking the possibility.
Taxes and legal compliances
Managing payroll taxes is a really painful task. A reliable payroll system simplifies payroll calculation, withholds and submits taxes on time, and prevents errors.
Search for a software provider that not only withholds the right tax rates but also files with the right government agencies instantly.
Additional things to look out for
- Is the provider a Registered Reporting Agent with the IRD?
- Is the tax filing accuracy guaranteed, and where does the provider take care of any errors if issued?
Refer to the benefits of payroll localisation with HRMS in Hong Kong and also the benefits before implementation.
Database Security/ Back-up
Payroll software must be highly confidential and secure in any company. Before making a deal, check the vendor’s security certificates and licenses and get real information. You also need to be familiar with any corruption and how often the backup facility works. Enhance the security of payroll software providers offered to secure a company’s entire data.
Flexible payroll options
You might need to offer employees monthly, bi-weekly, semi-monthly, or weekly pay as required. Consequently, it is handy to handle many payrolls at multiple frequencies. Furthermore, on-demand pay remains a much-appreciated perk for workers to maintain financial flexibility.
Ability to configure in multiple locations
Choose a payroll software to configure the payroll of people working in different territories of your organisation. The software must be adaptable and flexible in calculating the payrolls of employees who work in each location.
Scalable pricing plans
Indeed, the requirement changes from local-based companies to large or multi-national organisations, so the payroll software must be scalable with the company. The payroll software providers you select will have pricing plans depending on your business size and requirements.
Salary Calculation
With payroll software, you can automate and calculate the salaries of different employees based on the attendance recorded and leaves taken. This will reduce errors and save you time on strategic HR duties.
User-friendly Interface
With user-friendly payroll software, the high demand of users allows ease of use in working on various features and functionalities and keeps away from handheld devices. In short, payroll is a boon for HR managers to grow the business with productivity.
Report Generation
In any payroll software, report generation is a most necessary action, and whenever required by the management, it must be prepared with ease. No matter what, with effective payroll software, you can create customised reports based on the options you need.
To learn more about the emerging payroll mistakes in Hong Kong in 2024, refer to the top 10 mistakes followed by the Hong Kong payroll process.
5-Step Process of Choosing the Right Payroll Software
Step 1—Identify the needs
Before diving into vendor research, have a deep analysis of the needs of your employees and stakeholders, including payroll members and leaders.
Step 2—Research the vendors
Study the competitors, their features, and how diversely they pay attention to the market.
Step 3— Make a shortlist and reach out
Here, this much more profound way of study includes as follows;
- After conducting research, book a demo with the vendors you outlined and send a request for information (RFI) so that you can compare the options you presented.
- If you are really thorough with your research, you can ask for a request for proposal (RFP). It includes the key information about your needs, about the company, specific needs, vendor questionnaire, and proposal submission rules, i.e. to follow on submission deadlines.
- Schedule a meeting with the sales representative and follow the shortlist.
Step 4—Make the business proposal
After gathering the above data, it’s time to decide and have your payroll software provider set a quote based on your needs.
Step 5—Implement and onboard
The final step is to ensure that the stakeholders are confident about using it. Also, the main reason companies fail with ROI on software purchases is that they fail to follow up after implementation to determine whether the power tool is effective and covers all their needs.
Also, know more about the top 10 payroll metrics with cloud payroll by implementing the payroll software.
Final Thoughts
Now that you are aware of different points to consider when choosing the right payroll software make sure you add the points listed in this article for your reference. If you find any additional points before discussing them with the sales rep, add them, too, and choose the best software provider. Try to analyse the different offerings provided by the various providers and make a wise decision on selection.
Enjoyed reading!
Why wait? Talk to our experts and get a personalised discussion by clicking here!
