A quick guide to choosing the right payroll solution

 

Your payroll solution is critical to the wellbeing of your company and your employees. The right system provides an automated, accurate, and seamless experience that contributes to employee satisfaction, aids payroll efficiency, and provides actionable insights to stakeholders.

What should you consider when choosing a new payroll solution and why?

Our quick start guide walks you through features and benefits such as ease of use, automated processes, regulatory compliance including vacation laws and taxes, comprehensive reporting, integration with HR systems, tax returns, self-service portals, mobile access and support.

Yes, payroll software has come a long way. But where do I start?

Step 1. Understand your business salary requirements.

Before even looking for possible solutions, it is important to define your business needs. In this exercise, you can focus on finding a solution with the right size, features, and eliminating inappropriate options.

Start with the documentation:

  • Number of full-time employees
  • Number of temporary workers
  • Temporary employees
  • Project employee
  • Company size
  • Wage budget
  • Employee bonus
  • Billing frequency
  • Experience and skills in internal payroll accounting
  • Pay slips (do you need to print them out?)

Further considerations:

  • Do you need standalone payroll software or should you integrate it into a timesheet application or even into your HR solution?
  • Do you need self-service capabilities for employees to save administration time?

Step 2. Understand your business analysis needs

Generations of companies have relied on spreadsheets to report on their payroll. Fortunately, most modern payroll solutions offer real-time, one-click reports.

The question, however, is what reports do you need? They can include:

  • Cost center reporting
  • Labor cost analysis by department
  • Salary overview
  • Summary of deductions and contributions
  • Tax and wage overview
  • Tax liability

Step 3: Understand your payroll compliance and contractual requirements

Compliance with local labor laws is non-negotiable for your company. Failure to comply with the law (and the tax department) can be costly in terms of reputation, employee engagement, and financial penalties.

Your legal and contractual obligations include:

  • Management of employee entitlements (these depend on individual employment contracts), including bonuses and commission payments
  • Minimum wage rates
  • Holiday entitlement
  • Annual leave in the areas of vacation, sickness, maternity, parenting, grief and domestic violence
  • Employer deductions, including PAYE and KiwiSaver
  • Taxation payday filing

Step 4: do your homework (the exciting thing!)

Now you can start looking for the perfect solution. Take the time to examine payroll software features, both must-haves (wage and labor laws, social security and contractual obligations) and nice-to-haves (like self-service and mobility).

Your goal is to evaluate the pros and cons of each payroll solution you identify that matches your minimum business and employee needs, budget, and type of business.

Functions to be crossed:

Cloud: This is a seriously non-negotiable feature. With the online accounting software, you can access and control your accounting data around the clock. Information can easily be updated and shared with the finance team or the IRD. The robust cloud security significantly reduces potential wage and salary risks, software updates and corrections are automated and carried out immediately, and the need for internal IT support is minimal. A cloud-based payroll solution also supports business growth and makes it easy to add new employees.

Adaptation: While payroll best practices can be universal, with a good payroll system you can customize processes, templates, screens, reports, and more to reflect your unique business needs, brand, and culture.

flexibility : With the COVID-19 event, the form and type of workforce changed dramatically. Does the system support your ability to manage full-time, part-time, contract or flexible employees?

HR integration: By consolidating the data from your payroll and HR systems, you save time, improve accuracy, accessibility and efficiency, and benefit from seamless accounting and comprehensive real-time reports.

Other integrations: By The integration into related payroll software such as time cards or attendance lists significantly reduces the time required for manual and often error-prone data entry. With all your data in one place, you have an accurate, computer-free and optimized billing process.

Compliance : Save time and avoid headaches with a software solution that supports your ability to comply with local laws 100%. A reputable provider ensures that your software always complies with the latest laws, including updated compensation rates, PAYE, KiwiSaver, vacation pay for employers.

Local support: The Support should never be more than a call away and should be available during your business hours. You should expect at least one-on-one live support via chat, email, or phone, as well as on-demand access to detailed user guides and tutorials.

Reporting: One Real-time and detailed one-click analysis of your company’s payroll saves administrative time and reduces errors. With accurate financial and HR information (like reports or dashboards, or both!), You can make informed, timely decisions.

User friendliness: Look for a billing system that makes the burden on your billing team easier, not more demanding, or more complex. The software should be intuitive, user-friendly and quick to learn. And it should keep evolving and improving.

Payday filing: As of April 2019, companies that pay an annual PAYE and Employer Superannuation Contribution Tax of more than EUR 50,000 must use the electronic payday filing system. Your payroll solution should eliminate the need to upload files and instead automatically send your information to the IRD.

Automation and notifications: The automation of the wage and Payroll Changes Life! Look for a system that includes automated timesheets, tax and vacation credit calculations, and direct deposit management. Never miss a task or appointment again with email and SMS notifications, reminders and push notifications.

Employee self-service portal: A self-service portal not only offers your employees easy access to their accounting data, but also reduces the administrative workload of the payroll team. Employees can view and download pay slips, tax information and accrued vacation, update their data and even book during vacation. And it’s an ideal way for an employee to upload business expenses and request payment.

Mobile access: For convenience and efficiency, choose a solution that is either a mobile-friendly website or an app.

Summary

A thorough understanding of your needs should help you decide which payroll solution is best for your company, your people, and your budget.

Payroll systems have changed significantly over the past decade. Therefore, it is important to ensure that you are realizing the value of fundamental technological innovation rather than adopting a system that has simply been redesigned. Or worse, you cannot support your compliance needs or offer local support.

When creating your shortlist of payroll solutions, don’t forget to read the customer reviews. Firsthand user feedback on both the solution capabilities and the quality of the vendor support is invaluable in your decision-making process.

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