Payday might be your favourite day at work but it is usually a hectic day for the HR and payroll department. Ensuring accurate disbursal of salaries to all the employees in the company can be a gigantic and overwhelming task especially if the process is not automated.
Payroll management isn’t limited to paying employees on time either. Payroll professionals or small business owners also need to be constantly on top of tax calculations, leave accruals, salary deductions and tax filings.
A good payroll administration tool can save the day and make things much easier for the payroll department. Let’s dive into the many benefits of using payroll software tools for your company and the top payroll administration tools to check out in 2022.
What is the purpose of a payroll administration tool?
A payroll administration tool can automate functions involved in payroll management in a company like calculating employee bonuses or automating payments.
Compared to manual payroll management, payroll software can expedite and automate employee payments. It can also help ensure there are no manual errors in the process and free up resource time which can be dedicated to company growth.
What are the benefits of adopting a cloud-based payroll administration tool?
Adopting the right payroll administration tool can free up a lot of time for the HR professionals in a company. If HR employees have more time available they will be able to do their job better and timely salary payments and accurate compensation calculations can help maintain employee satisfaction and motivation.
Here are the top advantages of payroll management software.
- Error-free payroll calculations
- Huge savings in time and monetary resources
- Better security for payroll data
- Access to comprehensive, timely and regular customer support
- Ability to stay up-to-date with the latest taxation regulations
- Automatic generation of payslips for employees
- Timely reminders to perform payroll checks
- Reliable payroll administration and tracking
What should the selection criteria for a payroll administration tool include?
It is easy to get consumed by the number of options available in the market for payroll management tools. It is therefore important to have a list of core functionalities that you would expect from a good tool.
Here are some crucial criteria that can guide your choice of a suitable payroll management software or tool.
- It should be able to provide in-depth payroll reports
- It should provide mobile accessibility
- It should allow you to enable automatic payments
- It should be capable of filing and paying taxes automatically
What are the top payroll administration tools to look out for in 2022?
In the last few years, the corporate world has really warmed up to the idea of using automated cloud-based payroll administration tools. A report released by Market Research Future put the Compound Annual Growth Rate (CAGR) of the payroll software market at 9% between 2016 and 2023.
Here are some of the most popular payroll management tools in 2022 that are worth checking out.
- OnPay
- Gusto
- SurePayroll
- Intuit Enhanced Payroll Software
- Sage Payroll Essentials Plus
- Patriot Software Full Service
- Square Payroll
- QuickBooks Payroll
- Xero
- Wave
- Zenefits
- ADP Workforce Now
The market is flush with payroll management software so you will be able to find the right fit for you and your company. It is essential to experiment with a few tools to find out which software can help you streamline your payroll operations.
While selecting and operating a payroll administration tool can seem difficult on the surface, appropriate payroll courses can simplify it for you. You will understand the integral concepts of payroll management which will help you pick the right tool to automate payroll procedures.
The IBAT College Dublin offers a great Diploma in Bookkeeping and Payroll programme that can be your guide to payroll management. This payroll course in Dublin will teach you how to adopt an organisational and logical approach to payroll procedures and complete them with high efficiency.
This payroll management course in Ireland can train you in all the skills and competencies expected of you in a payroll management role. You will also learn about income and tax calculations, social insurance tracking, payroll modernisation and salary processing.
Click here to get a breakdown of the course structure of the payroll administration degree at IBAT College Dublin.
Frequently asked questions
Question 1: What does the payroll process involve?
The number of steps involved and the complexity of the payroll process often depends on the size of the company and number of payroll management professionals. However, an average payroll process includes the following steps:
- Calculation of the total number of work hours of employees combined and individually
- Calculation of their gross incomes based on work hours
- Calculation of total employee benefits and taxes on them
- Dispersion of the net accurate income within specific deadlines to each employee
Question 2: Will a payroll administration tool increase the payroll management expenditure for my organisation?
Most comprehensive and well-built payroll tools usually cost a premium. However, investing in a good payroll administration tool can save your company a lot of money by reducing the number of resources and work hours to manage payroll. It can also eliminate manual errors and their financial implications.
Question 3: I am just starting my business and don’t have enough funds. What’s the best free payroll software out there?
There are plenty of options when it comes to free payroll software, which are perfect for small or new businesses with limited budgets. Some good choices include Payroll4Free and Hr.my.
However, you should keep in mind that free tools aren’t always seamless and can carry a lot of technical glitches which can cost your business. Therefore, you should transition to a paid payroll management tool as soon as possible.
Question 4: What should I keep in mind while selecting a payroll software?
Here are a few important criteria to consider while selecting an appropriate payroll administration software:
- Quality and extent of customer support services
- Arsenal of relevant features
- Long-term subscription costs
Question 5: Can a bookkeeping background help me find a suitable job in payroll?
Yes! Payroll management involves a lot of financial record-keeping and calculations including accurate tax filings and leave accrual. As an experienced bookkeeper, your knowledge of financial management can help you do a good job as a payroll professional.
This article was written by Sweha Hazari.