Payroll Software

Common Terms And Phrases

admin — Fri, 09 Jul 2010 01:44:34 +0000

Payroll software can definitely take some of the hard work out of running a payroll for a company. However, if you are just getting into payroll and payroll software, you might soon realize that there is a superfluity of confusing jargonistic phrases and other terminology entirely proprietary to the payroll world. Learning to speak the language will certainly make navigating the world of payroll and payroll software much easier. Some words or phrases may also be used in other areas of business and some may only be used in payroll. Either way, knowledge is power. So here are some of the more commonly used terms in the industry of payroll to help you better understand what is being said and what is going on.

Wage orders – these are certain wage and hour standards which can be set by state agencies in some industries
Wage attachment – a garnishing of an employee’s wages mandated by some outside power (for instance court order) for the purposes of paying a debt
Tip credit – employees that receive tip compensation in addition to pay receive a special minimum wage. This is a credit against that minimum wage.
Statutory employee – this is an employee that is considered self-employed for the purposes of income tax and considered an employee for Social Security and Medicare tax.
SEP (Simplified Employment Pension – this is an IRA (Individual Retirement Account) that is available to some of the smaller employers. As the name implies it is a simplified, and low cost, retirement plan for both the employer and their employees.
SUB (Supplemental Unemployment Benefits) – employer funded pay given to an employee who has been terminated in addition to standard unemployment compensation. SUBs are taxable as regular pay but not for Medicare, Social Security, or federal unemployment taxes.
Shift differentials – augmented pay for working undesired shifts
PEO (Professional Employer Organization) – an outsourced company that provides services for some HR work.
Qualified plan – benefits plans that qualify for IRS tax favored treatment.
Reciprocity – a granting of privileges between two jurisdictions, usually states, where a privilege has been granted to one jurisdiction in reciprocation for being granted that same privilege BY that same jurisdiction.
SIMPLE (Savings Incentive Match Plans for Employees of Small Employers) Plans – similar to an SEP in that it is specifically available to smaller employers. The limit is 100 employees or less and can be set up as an IRA or a 401(k). It is a tax free contribution matched by the employer.
MMREF (Magnetic Media Reporting and Electronic Filing) Specifications – specifications for electronically filing the W-2s with the Social Security Administration.
ESPP (Employee Stock Purchase Plan) – a benefit that enables an employee to purchase company’s stocks at less than current market price. Related to ISO.
ISO (Incentive Stock Option) – a stock option that is statutory and enables an employee to purchase, at less than current market price, company stock.
HAS (Health Savings Account) – health plan which is attached with one’s savings account, high deductible, used for building finances for the purposes of certain medical expenses that qualify.
HCE (Highly Compensated Employee) – this is an employee that meets the following criteria: Top 20% of employees for highest compensation, 5% owner, and (according to IRS standards) exceeds a specific compensation level annually.
Gross up – a calculation that some employers can use to figure the taxable gross wages it will pay an employee.
EFTPS (Electronic Federal Tax Payment System) – set up by the US Dept Of Treasury which allows for taxes to be filed free of charge electronically.
Elective deferral – a deferral of payment, chosen by the employee, of a portion of that employee’s compensation for either a defined investment plan, payment, or other.
Cafeteria plan – a type of employee benefits plan that allows them to utilize pretax wages to create their own benefits plan.
Accounting period – the period which is covered by one income statement.
Accelerated Deposit rule – this is also known as the one day rule. It is basically when an employer accumulates $100,000 tax liability or greater during any one deposit period must deposit the withheld taxes within one day after the day the liability occurred.

This is by no means a definitive list of every phrase used in the payroll industry. Indeed there are always new terms coming into play and certain specific software companies in the industry might have terminology specific only to their environment. However, this is a good ‘starter list’ to get you going. Knowing these phrases will allow you to hit the ground running in your search for payroll software. Consider this the first step on your journey to the ease and convenience that payroll software embodies.

Payroll software industry, as any other industry, has many terms one should become familiar with before starting to use payroll software.

Which One?

admin — Fri, 09 Jul 2010 01:16:26 +0000

For any business in today’s current fast paced market climate, payroll software is very common place. Within the payroll industry there are a few different options available (not using payroll software is really not a very realistic option). The first option is to have an in-house payroll department. This option is a big investment for any company as you have to keep staff dedicated to the job of payroll trained and up to date. However it does provide the highest degree of control for a company as you are entirely hands on throughout the process.

The second option is to pay a specialized company to handle your payroll for you entirely. This is virtually the opposite of the in-house option. There is no staff dedicated nor any training required since this is all covered in the cost of the service provider. The final choice is an in-between of the previous two. This is the online payroll service. Though the software does not run on your company’s systems and there is little to no installation, there is still the requirement for someone to have knowledge of payroll and tax laws because you will be entering the information yourself. The cost for this option can vary. Here is a closer look at all three options.

In house

Your company will have to purchase payroll software, install it in your systems, and train personnel on using the software. It is a very important decision of which payroll software will be the best for your company. It is important that the program you choose is fully able to be integrated with the rest of your company’s software or the payroll software might even come bundled as part of a larger human resources software or financial software package. Once your company has chosen the right program for the job, you need to have it installed by IT workers. There might even need to be a dedicated employee to general upkeep of your network. Finally, once the software has been chosen and installed, you need to properly train workers on not only how to use the software, but also tax laws in general. This is no light job. Your company can not only lose a considerable amount of money if your payroll department is not running effectively, but you can also run into major legal trouble. Staying up to date on tax rules and other payroll issues is very important.

Obviously this option is for larger companies where running a payroll department is financially attractive. If you have employees trained as well as the employees working for payroll service providers and you have the budget to do it, the in-house payroll option is great.

Outsourced payroll

This is where your company is entirely hands-off in the payroll process. You simply pay another company to do absolutely everything and wash your hands of it. The service provider will print and deliver checks for you, file tax returns, and take care of your year- end tax returns as well. Depending on your needs and how complicated your payroll is, you can potentially get a very decent deal financially. On the other hand, you might settle on an over-priced company that is not as effective as its competitor. The cost on this option is entirely contingent upon the research you do before deciding what service to use.

This is the simplest of the options and also the least controlled. You do have some options available for restitution if your service provider does make mistakes such as a lawsuit or simply taking your business elsewhere as a threat. However if the company is ineffective you might lose out on tax breaks or other beneficial scenarios. The thing is that you might never know you are missing out on them because you are entirely out of the loop. This is a good option for businesses that simply want nothing to do with the headache that payroll can be. If you are a smaller business (20 or less employees) it certainly might benefit you to outsource your payroll.

Online payroll software

This is sort of an in between for the previous two options. There is no installation or maintenance of software to worry about as the program is entirely accessed online. This can save money on IT costs. There are varying levels with this option. You can set it up where it is much closer to a service provider and all you are doing is simply entering in the basic information or you can have it where they are simply providing the software and you are in control of everything else. Obviously if you are still entering all of the information yourself this will mean training and maintaining a knowledgeable and effective payroll staff.

With any of the available payroll options your company decides to go with, research and knowledge will go a long way. Whether it is research on which payroll software to purchase or whether it is on payroll service providers, make sure that you are getting quality for your money.

Any successful business will have a great use of payroll software, however there are a few different options available such as outsource, in-house and online payroll software.

Certified Payroll Software

admin — Tue, 15 Jun 2010 00:08:59 +0000

Certified payroll software is a specific sub-category of payroll software dealing with government bid jobs. When working with a government contract, there are certain specifications and requirements that must be met that are slightly different than with other contracts. This is known as 'certified payroll'.

Under the Davis-Bacon Act, certified payrolls must be submitted from the beginning of the very first work week and for every week after until the contract or bid is satisfied. In the event that there are weeks where lulls in business or circumstantially work are not feasible, there still must be a certified payroll submitted in the form of a "no work performed" payroll.

Specifically, a certified payroll software will deal with in addition to certified payroll reports and 'no work performed' certified reports, general and custom-designed benefits plan reports. Because government jobs are bid on, in a similar manner to other jobs, the costs in running the project must be closely and carefully monitored. This is the reasoning behind all the certifications and no work performed payrolls.

There are two primary forms used in the area of certified payroll: WH-348 Statement of Compliance form and also the United States Department of Labor form WH-347 Payroll Certification. These are more or less industry standard forms that most states will adhere to. There are a few states, however, that do require specialized forms. These specialized forms are very similar to the forms previously mentioned but are slightly augmented for specific state regulations or requirements.

The certified payroll program will take the information submitted about a general payroll and create from that what is termed a Certified Payroll Register. The information that is taken into account is the following:

Information of the project contractor and sub-contractor
Information of the project itself with the address and other pertinent information
Employee information with the name, the address, social security and any other pertinent information
Any withholding exemptions
Employee work classifications
Hours worked by date
Hours worked by each employee in total
Rate of pay and any other incidentals or cash fringes
Gross amount of pay earned on this job
Gross amount of pay earned on all jobs

Any deductions and net wages paid for the week

Most certified payroll software programs are well adapted at integration. If you are running another payroll program or have some other means by which to keep track of your employee payroll, it would be beneficial to not have to re-enter all the information from one program into another. By automating this process you can save yourself time by preventing what is called double-entry of data. Ideally, the certified payroll software program you use will be able to directly take the information from your current program and fill in all the necessary fields for you. Different programs have different compatibilities. Some of the bigger brand names will most likely work with a wider variety of other programs. When purchasing a certified payroll software program it might be a good idea to check the compatibility to ensure that you will not run into a time consuming double entry scenario down the road.

Each and every contractor, and even subcontractor, is required legally to keep their own certified payroll information along with other information for a minimum of three years after the project has been entirely completed. This is important as well for consideration about integration. Regardless of whether or not your company has the budget to upgrade or change payroll programs every year, there is still the consideration of past records which must be kept. Integration of the payroll software is very important for saving time and extra work.

Certified payroll software can generally be gauged in price based on the nature of the industry in which it is used, or the type of job it is handling in addition to the quantity of employees it will be handling and the company which is providing it. Obviously the more complex the work and the larger number of employees, the more comprehensive the program must be which in turn will stimulate a higher price.

Utilizing certified payroll software will save time and valuable work hours. It will improve accuracy through organization of large quantities of information while making the sorting of that information as simple as possible. It also minimizes double entry of information and other potential input issues largely due to human related error. Most importantly it will put your company within the required guidelines for working on certain jobs and maintaining records for those jobs in accordance to your state's rules. (One of the most important things to look for in certified payroll software is that it will comply with any of the specific requirements or specifications that your state may have) Certified payroll is certainly a valuable investment if your company consistently works with jobs requiring certified payrolls.

Certified payroll software is specific payroll software that deals with government bid jobs and certain requirements and specifications that must be met.

Payroll Software Programs In Review For Comparison

admin — Mon, 14 Jun 2010 23:56:55 +0000

In an industry of fast paced technology intensive business, payroll software is virtually a must have. It enables a business to run more streamlined payroll with a less labor intensive payroll department. The amount of time and energy saved through payroll software programs is invaluable even after taking into account the training required for properly using the software and keeping employees up to date and informed on all the latest tax rules and other applicable laws. There are countless strategies, ‘how-to’s and other various articles on what to look for and how to compare payroll software programs. This article will give specific examples of a few payroll software programs and a brief overview of their usability in terms for easy comparison. Here are a few software payroll programs:

WinFiler

Both WinFiler and Winfiler Plus are offered by GreatLand Corporation which has been around since the mid 70s. WinFiler supports up to 24 different federal forms with WinFiler Plus adding 9 to that number. Both can be installed for single PC usage or through a network.

The setup for Winfiler programs is entirely built around the Microsoft Windows format. Though the program comes with a PDF file as a manual there are no hyperlinks, which is unfortunate. However there is an online guide which can help much more effectively.

WinFiler is at its best when printing out reports and forms and as such does not have any export capability. The WinFiler program and its brother, WinFiler Plus, are both simple to install and easy to use programs for quick entry and form printing.

PayCycle

PayCycle’s Accountant Wholesale Service is a great easy to use online self service payroll software program. It charges a set monthly fee of $14.99 for the first five clients and $9.99 for each additional client. There are virtually no additional fees involved and this program is fairly extensive in what it is able to cover. Tax payments and filings in all 50 states (including the District of Columbia), electronic tax payments in 19 states with just one click, and even customized marketing materials.

Throughout the program everything is hyperlinked for easy access to every other part. Customer support is very on point with phone response claimed within 3 rings and email response just as quickly.

This is certainly not the cheapest program available. It does however offer all the resources you will need for payroll in a very user friendly interface and no additional fees for such things as mid pay cycle check issuing.

Payroll

Red Wing Payroll is a standalone product based on Microsoft Windows designed with the small to mid-size businesses in mind. With other available Red Wing accounting goods Payroll can integrate very seamlessly.

Payroll is a very flexible program including the ability to copy certain groups of information which can make quick work of certain repetitive tasks. This software program also comes with a physical Payroll User Guide in the form of a thick spiral bound notebook along with a thinner Supplement. There are a decent amount of predefined reports available through this program though there are a few missing that should not be such as a vacation report (though this can be accessed through employee setup).

Reports with this program can be exported through HTML, MS-DOS, Excel, and RTF formats. This is a fairly easy to use program that is well-documented and best suited for the needs of small and mid-sized companies.

The next generation

TNG is from the Universal Business Computing Company (UBCC). This is a very portable and interface-able program as it is compatible with over 600 available platforms such as Unix, Linux, Microsoft Windows and a considerable variety of mainframes and minicomputers.

TNG has a special data file structure known as “indexed sequential access method” or ISAM unlike Oracle or Access which allows for instantaneous accessing of files regardless of the file size. It also does not use batch processing which translates to data being online instantly. TNG is fast. There are 3 separate modes: Graphical Expert Mode, a Windows-like mode, and a DOS style mode. Though the CD that comes with the program and containing all the help files is not organized in an easy to use manual, there are help files in the program itself via drop down menus.

There is definitely going to be a learning curve as this is a very comprehensive program, but this is a program that certainly will be valuable not only in flexibility but also in the fact that it integrates very effectively with other accounting functions.

This comparison review should give you a little further insight into how some of the payroll software programs work in contrast to one another. Whether you specifically are interested in one of these programs or are using this information when you are shopping for others, this information will put you closer to the knowledge of the industry that can prove invaluable.

Payroll software programs enable a business to run smoother and with less labor and therefore choosing the right one is essential.

A Review Of A Few Programs

admin — Mon, 14 Jun 2010 06:45:12 +0000

The payroll software industry is varied and expansive. With a seemingly endless supply of vendors and programs it can often seem overwhelming. There is certainly no shortage of strategies for what to look for when shopping and other helpful articles. This one, however, will take a look at a few of some of the payroll software programs available and what features they have to offer.

ATF payroll

ATF (standing for ‘after the fact’) is the payroll aspect of Advanced Micro Solutions family of products also offering W2/1099 Form Filer, Magnetic Media Filing, Laser Generation,

E-Filer, and Forms Etc. This program also can handle employee compensation entries as well as the federal and state withholdings calculations.

The installation of this program is very simple and the price is comparably low and allows for multiple installations, either through actual PCs or through a network.

Though this program’s interface might leave something to be desired in the way of being pretty, it is a great deal for the price. It is also technically effective. For larger payrolls there are certainly other programs which might be better suited. However for small to medium jobs this program is an excellent choice for the price.

Abra Payroll

Abra has been around for over 20 years. It is one aspect of Best Software’s suite and regarded as its most comprehensive Payroll Software. There is also Abra HR, Abra Training, Abra Recruiting Solution, Abra Attendance, Abra Benefits Enrollment, and Abra ESS.

The program comes on a CD and a user’s guide. Under Sample Data you are allowed to play with the options of the program without any effects. The help menus are very extensive and technical, almost too technical. It has a nice audit capability.

One stand out trait of Abra Payroll is that it includes both federal and state reporting. This is a program best suited for smaller and mid size companies.

CPA Payroll

CPA Payroll is bundled with a larger program, CPA Accounting Manager suite by Best Software. For installation there is a 15 minute demo video available for you to download and watch. The tutorial covers the most frequently used options through the guise of a sample client.

There is a 6 step process for getting started:

client setup
fiscal periods
payroll options
chart setup
checking account
payroll setup.

Payroll setup gives 7 defining available options. One odd aspect of this program is its inability to recognize the ‘alt/tab’ toggle button to switch between programs without the use of the mouse. One nice aspect of it is that you have the option to leave with clients a limited version of the program in order that they can enter time and print checks. This program allows for the conversion of up to 10 different packages for importing outside software information.

While there are many available options for correcting inaccurate information from clients regarding payroll, this program is best suited for single pay periods with either salaried or hourly pay types.

PRS Payroll solutions

This is actually one payroll software program of the two that Creative Solutions has to offer. The other, which is PCS (Payroll Compliance Solutions), is for after the fact processing of payroll and handles also several of the federal employment tax forms.

The installation of this program is not complicated at all. Licenses are distributed electronically when you purchase the package. It comes with a smaller guide to get you started as well as a larger tutorial manual. There is an electronic tutorial with integrated slides and narration and also a specific payroll tutorial in the help tab. It also has sample clients to offer realistic scenarios with which to become accustomed to the software. You can even use the samples as models for creating real accounts with real clients sharing similar characteristics.

Payroll Solutions has not only a broad range of features, but also flexibility. It might be a good idea to issue training for this program to fully take advantage of the considerable scope of the capabilities offered. It has the ability to handle very complex payroll scenarios with some additional sub-programs such as employee web reporting, direct deposit, and electronic filing which are available for an extra fee.

Though this is obviously not a comprehensive review of even a fraction of available payroll software programs available on the market today, it is a review of some of the more popular programs in the industry. Hopefully this review will help on the path to choosing a payroll software program that is right for your company. This should not serve as a substitute for a demo of the product as hands on experience with the program you are considering using is always the best way to decide if it is appropriate for your needs.

Before deciding on which payroll software to take read this review and get a better picture of what you are buying and which features are available.

Is Online Payroll Software A Good Choice?

admin — Mon, 14 Jun 2010 06:06:18 +0000

In the current business market of payroll software, the question is not whether or not a company needs it, but what type they need. There is no question that payroll software fulfills an important function in the business world streamlining many complicated and integral tasks thereby dramatically decreasing the workload on the payroll or human resources department.

The payroll services world can be broken up into two main categories; purchase of a software license for installation and use on the company’s main server, or online payroll services (online utilization of resources is sometimes now referred to as the cloud). The question when dealing with payroll services software is should you purchase the software or should you utilize an online payroll services software. Here is a brief look at some of the benefits of using online payroll services software.

The main benefit to not purchasing a software program outright and simply using their services via an online format is that the bulk expense of purchase is deferred. This can be extremely beneficial to company for quite a few reasons:

Start ups

Smaller companies that have just entered a particular field are often going to be quite pressured to perform well financially and to overlook no opportunity with which to save money. This is true in general for any company looking to perform well but especially true for start-ups as there has not been an established history of profits and the owners are usually in the red considerably in the beginning.

By deferring what can sometimes be a considerable lump sum payment for the purchase of a payroll software program a smaller company can get the premium payroll software at a discounted monthly or quarterly rate. This can allow less debt to be taken on initially which will obviously lower the financial strain on the company. As the company grows financially it will then have the option to either purchase or continue to use in an online manner the payroll software. But by initially taking advantage of the online option the company will not be limited by budgetary concerns.

Budget

Some companies whether start up or long established, simply do not have a flexible enough budget to accommodate the purchase of a new payroll software program. Rather than run an outdated program or even worse, to have no payroll software at all, the online option allows companies with tight budgets to meet the current needs even if the money is not entirely there to date.

Obsoletion

Even with the purchase of a software program, a company will face the yearly, if not quarterly, upgrade requirements. Often the purchase of a program is only good for one year with upgrades. After you will no longer have access to the latest updates that payroll software provider has to offer. While in some industries having slightly outdated payroll software might not hurt as much, in others this might be a very big deal. With the online option of ‘leasing’ the software, you can be sure to always have the most up to date version of your payroll software available.

The online payroll software option can work in a variety of different ways. For every software provider there might be a slightly different way in which they offer the online services. With every company trying to provide software that is unique in one form or fashion to differentiate and thereby show value, this is not a surprising scenario. But these programs will all have certain similarities. They do, after all, have to perform some certain basic payroll functions.

Most companies will have set up an account for the client to sign into which allows them access to the software. This account will then have all of that client company’s specific information for paying its employees, handling payroll taxes, W2 forms, direct deposits, and so on. Usually the online version will handle most every, if not all, options the purchase version is able to.

Because the software program runs on the provider company’s servers, there is obviously no need for installation. This can save on IT costs through installation and maintenance of the network. If anything goes wrong it will be the provider company that will have to fix the network. Additionally, the learning curve might be somewhat lessened.

The nice thing with using software on a lease type basis is that if for any reason your company decides to stop using that program, you can simply go another direction. You have not invested as much in purchasing the full program and it is not running on your servers in your company’s system. You will obviously still need to procure another program to fulfill the payroll duties so until you have a replacement you should not abandon ship. You should be able to retain your company’s private information however and today integration between two payroll software programs is almost a given so it should not be hard to import that information into the new payroll software.

This is simply a brief overview of some of the benefits of using online payroll software. There can be a far lengthier and nuanced discussion of the pros and cons but this should provide a general platform from which to take that first step.

Payroll software is a need for every successful company since it fulfills an essential function in the business world, solves many tasks and decreases the workload.

What To Look For In Payroll Software Program

admin — Mon, 14 Jun 2010 05:59:47 +0000

Payroll software in today’s business climate may seem so integrated it might be hard to imagine exactly how companies ever managed to get along without it. Considering all the various things payroll software accomplishes, it certainly makes things easier. However, because payroll software fills such a complex and integral role, trying to decide on the right payroll software program for you can often be a very comprehensive and potentially confusing job. How do you decide what software program is best suited for you? Here is a look at some of the most important aspects of any payroll software that should definitely be a priority in your decision making process.

Create and manage company details

The software program will be able to automate many organizational tasks such as information storing and enable access to that information. This can simplify storage and search for information as well as save space for storage. This also can potentially make the sensitive information more secure.

Create and manage employee details

It is important to not only manage the company’s important details but also to be able to integrate that with new employee information. This program needs to be able to handle constantly dynamic information as the employee payroll information will be in a constant state of flux.
Able to run during specific financial time increments (weekly, quarterly, yearly)

The pay periods are of utmost importance in any payroll software program. If the pay period ends weekly, or if there are quarterly reports and/or goals that need to be achieved, the program must be able to accommodate this. The automation of the programs are only effective if the information is tracked and pulled when necessary.

Processing of departments individually or in aggregate

Not only incremental pay periods but at any point that reports are needed the program should have the capability of running the reports. The reports need to be contingent on a variety of desirable variables depending on the specific needs at that time. In short, payroll software needs to be able to work with multiple departments in tandem or to separate the information into departmentally segregated blocks.

Tax reports required by state and federal

The program needs to be able to keep track of all taxes paid for and by each employee and by each department for the purposes of tax organization. Various different forms and other necessary documents that are legally required which are absolutely imperative to have organized and turned in on a very time-sensitive basis.

Flexibility for bonuses, period end deductions/ additions, and overtime

Any incidentals above and beyond standard salary and hourly pay need to be accounted for. This needs to take into account a potentially different standard for payment such as a pay rate augmentation for overtime or lump sum payments of bonuses based on certain prerequisite company determined goals.

On the one hand, a good payroll software program will eliminate the need for much of the paperwork that comes along with any business, small or large. However, the need for paychecks, reports, and tax papers make an entirely paperless operation unfeasible.

One of the most important aspects of any payroll software program is undoubtedly security. Automating menial tasks and organization of large quantities of information for convenient and informative reports will do no good if anyone can access the information contained in the program. The company’s and employee’s most sensitive and important information is contained within the payroll software and the ability to store that information securely cannot be overstated enough.

An important aspect of the payroll software industry is that many of the programs are not stand- alone items. Often payroll software is integrated with job costing modules, purchases ledger, financial software etc. Or the software can be a sub-program of another program serving simply one task in a larger encompassing field.

Because payroll software can often be quite a complex program handling many things, the training can be fairly extensive. The learning curve will usually be proportionate to the complexity of the program. However, keep in mind that this will ultimately pay off as having a more comprehensive program will enable your payroll to run smoother and more effectively. Additionally, though some programs can be more complex to pick up, they should also have more sophisticated interfaces which allow for the learning curve to be lessened somewhat.

Due to the variety of different payroll software programs available on the market today, the first thing to do in narrowing down the choice for you is to determine what exactly you expect from a program and what you need it to do for your company. Consider how your company is structured, how large your company is and how many employees there are, etc. Make sure that a program you are interested in has the features you need. Often you will be able to try a demo. If you are talking to a salesperson, have them show you how the program works in an overview. Do not commit to a program you do not know anything about. Ultimately this program will be an integral part of your company. Payroll software program makes things easier for any established business or a company.

Payroll Tax Software

admin — Mon, 17 Aug 2009 16:03:08 +0000

Dealing with numbers day in and day out can be too exhausting at times! A little discrepancy in the accounts can put even a well-off business into trouble. Thus, correct handling of the payroll, which includes financial records of salaries, wages, bonuses and deductions, is very crucial for a business to grow. It has been seen that since the past few decades, the payroll is managed by the company head, which only means that a lot of time is being wasted in handling accounts and thus, affecting the growth of the company.

Today, competition is so fierce that a business doesn’t looks at the state or the country level, but aspires to have a good reputation all over the world. It is obvious that time needs to be spent on the growth of the business rather than managing the financial accounts, which is equally important though. Payroll is something that needs to be kept secret, thus company heads find it difficult to trust the professionals hired to handle payroll. To help ease the process, many payroll software packages are available these days, like payroll tax software, payroll accounting software, etc.

The technological advancements have made our lives much simpler. The time has come when more than hard work, smart work counts! Thus, it is very important to keep us updated with the changing technology. One of the examples to state here would be the growing importance of payroll tax software in an organization. While taxes were calculated manually till sometime ago, the coming of software’s like payroll accounting software and payroll management software, have brought a marked change in the working styles. Even small businesses can avail the benefits of these software’s, instead of paying huge salaries to accountants .It is important to note that every company is different from others, thus choosing the right payroll tax software is quite important. Although there are varied payroll tax software’s like QuickBooks by Intuit, Small Business Money by Microsoft, Quicken and Peachtree, etc., but which one suites your needs, is the main factor to consider.

What can payroll tax software do for you?

Meant for simplifying the tax computation process, payroll tax software can do the following:

Taking care of the federal and state income taxes.
Ensure that deductions have been properly mentioned in the accounts.
Helps dealing with sales taxes.
Makes e filing of taxes simpler.
Reduce the risks involved in the auditing process, when done manually.
Makes available information regarding tax rules and regulations, to employees.

Although big businesses can afford to invest in buying expensive payroll tax computation software’s or can even consider outsourcing their payroll accounting, but for small businesses, where budget is a problem, there are many online payroll software’s available. Even better are the open source payroll software’s, which can be customized to serve specific needs. These you freedom to use the source codes of the software to create something that meets your requirement. Some of the well known open source payroll software’s available online are Time Trex, DIY Accounting Payroll software, Payroll Mate, Time Sheet, Time Clock & Scheduling etc.

Choosing the right software meeting your business requirements is very important for the smooth functioning of the system.

Thus, you need to check whether the payroll tax software you are looking forward to, has the following features:

Should have easy-to-use/ user-friendly features
Flexibility to handle multiple operations
Should be built using the latest technology
Should have enough tools and wizards for modification and up gradation
Should be versatile, to indulge in a variety of tasks
Automated State and Federal forms to keep the rules and regulations in mind while calculating the payroll tax computation

Some of the favored payroll tax software’s available today are Automatic Data Processing, Inc. (ADP), specially designed for small businesses, MasterTax having a user-friendly interface to help those who aren’t familiar with tax computation methods and Sabrix, which supports global tax transactions and is thus preferred by those companies which have overseas clients. Tax Cut or Turbo Tax, CorpSystem Sales Tax Solutions and Independent Systems are some of the software’s dealing only with sales tax.

Most of the software’s give a free trial access to the potential customers for a limited period, which gives you enough time to decide the best payroll tax software for your company.

Never before could have anyone imagined that a software could solve so many problems that too within a blink of the eye. Managing the finances, which is such a sensitive field, has become a child’s task today, thanks to the existing online payroll softwares. Companies can now easily evaluate the potential of their employees and can give a justification when asked about the salary differences, hikes and deductions.

Open Source Payroll Software

admin — Mon, 17 Aug 2009 15:55:08 +0000

Managing a business efficiently needs a lot of skill and expertise in handling both the current and potential clients and the employees. It has often been found that people are not so loyal to their companies now, as compared to earlier times. Blame it on the changing attitudes, or work environment that has resulted in the fluctuating employee numbers in any company’s record. The desire for more money and better status is one of the factors that a company has to keep in mind while deciding which employees need to be promoted or given a salary hike. The payroll, which is the sum of all financial records of salaries, wages, bonuses and deductions thus, needs to be taken care of sensibly. The times have gone when the company head did the payroll manually. Today, when time is more precious than money, manual handling of payroll is only wastage of time. The technological advancements have opened up a world of opportunities by bringing many useful open source payroll software’s.

Since the payroll accounts are to be kept secret, the company heads don’t prefer hiring professionals or a payroll service company, so as to avoid any leakage possibilities that may creep in. With the help of certain software’s, this problem can be solved. Payroll tax software’s and payroll accounting software’s, like QuickBooks, manufactured by Intuit, Small Business Money by Microsoft, Quicken, Peachtree and many other software’s allow track spending, creating invoices, managing cash flow, in short, help in handling payroll efficiently and quickly.While big businesses can afford spending money on expensive payroll tax and payroll management software’s, the small businesses need not worry, as there are many open source payroll software available online for free. It is important to note that choosing the right payroll software that suits your business requirements is very crucial.

Some of the things you should check before deciding the payroll software are:

Flexibility to handle multiple operations.
Easy set up, in other words, it should be user friendly.
Versatility- It should be up-to-date and should have enough tools and wizards for modification.
Technology- It is very important that the software is built using the latest technology like Microsoft.NET framework based application.
Automated State and Federal forms to keep the rules and regulations in mind while calculating the payroll.

Every company has to follow some government rules and thus, while calculating the payroll on employees’ wages, tips, deductions and compensations; it has to refer to the latest rules and regulations regularly. This is one of the most important things to check, while buying payroll software.

Every business has different requirements and thus, it is not necessary that software that works efficiently in one company would do that in the other company as well. Understanding this, most of the software’s are available as open source payroll software, payroll tracking software, payroll deduction software etc. By making the source code available, this software’s can be easily customized according to the specific needs of the company.

Like PayThyme is open source payroll software meant specifically for UK, the software Time Trex is the most favored open source payroll software in the US. Efficient in handling multiple operations, like scheduling and attendance, payroll tax calculator and electronic pay stubs, software’s like Time Trex, Payroll Mate, Time Sheet, DIY Accounting Payroll software, Time Clock & Scheduling, etc. make the complex sounding payroll process extremely simple.

One of the advantages of using this software’s is the customer-billing feature, which allows companies to keep track of the accounts to their customers. Also, open source payroll software make the managing inventory and purchase processes easier for the companies, so that they can keep track of the transactions they make with their suppliers. Managing human resources can be difficult at times. For smooth running of the HR/administrative department, these software’s help in maintaining an employee database, an attendance management system and performance evaluation systems. Enterprise Resource Planning (ERP) software’s also help in business activities such as inventory control, order tracking, customer service, finance and human resources.

Managing the finances of a company is no doubt a difficult task, but by incorporating some changes in the working style, like bringing some open source payroll software’s, things can be simplified to a much larger extent. A business can grow only if right decisions are taken at the right time. Therefore it is very important to manage time efficiently. Open source payroll software’s, being available online for free, is best suited for small-scale industries, which do not have enough funds to buy expensive software’s. Payroll software’s have thus; become the heart of an organization.

HR Payroll Software

admin — Mon, 17 Aug 2009 15:50:31 +0000

Payroll is usually linked directly to the finance department of a company, which is true to some extent, but what we often ignore is the relevance of payroll software’s for HR or administrative functions. For smooth functioning of the work system and to maintain a good relationship between the employer and employees, the HR department plays a very important role. Be it providing information to the employees about their salaries, deductions, hikes, tax amounts or maintaining an employee database, an attendance management system and performance evaluation systems for the employer. While things used to be done manually till recently, but the coming up of a variety of payroll software’s like HR payroll software, payroll tax software and payroll management software, managing a company has become a lot easier than before.

t is the responsibility of the HR department to negotiate the demands put forward by the employees, with the employer. It is responsible to keep the employees happy and at the same time keeping the budget of the company in mind, while taking decisions. HR payroll software can be considered a comprehensive accounting solution to meet the demands of the modern day payroll process. While big businesses can afford to invest huge sums in buying expensive payroll software’s, small businesses usually look for bargains. One of the benefits of having the payroll software is that more work can be done without hiring any new employees. Some HR payroll software’s are more comprehensive than others, thus are well suited for big businesses, while there are some that do well in smaller companies. But irrespective of the number of employees, HR payroll software should be designed in a way, that any number of employees could be handled using that.

A payroll software helps in keeping financial records of salaries, wages, bonuses and deductions, usually done by the finance department of a company, but it is important to note that the HR department has the responsibility to ensure that the software contains all the modules to manage all payroll functions.

Some things that one needs to check, before considering a HR payroll package, are:

The software should be flexible to do a variety of operations.
It should have features of all these three- payroll tax software, payroll deduction software and payroll tracking software.
It should create and manage employee details efficiently, like leave reports, tax reports, provident fund details etc.
It should give easy access to monthly loan reports and periodic reconciliation reports.
It should have been built using the latest technology.
It should have enough tools and wizards for modification.

While these are the basic things to check before choosing payroll software, but you also need to justify its need for your business. Many a times, the software doesn’t have features we would have liked to have. In such a case, open source payroll software’s are the best option. By providing you the source code of the software, it enables you to make changes and develop it according to your requirements. Some of the software’s come with a free trial period, which lets you decide if the software is well suited for your business or not. You also need to see if you need a hosted solution or an in-house one. While the former frees you from buying hardware and maintaining it frequently, the latter is preferred by some companies, which prefer to have direct control over the applications, even if it means more maintenance and regular up gradation.
Many companies come out with different types of software to meet specific business requirement.

Some of the favored HR payroll software’s or Human Resource Management Systems (HRMS) available today are:

Simple HR, a Windows product, which maintains salary history, benefits, performance reviews, training schedules, vacation dates and incident reports.
People-Trak HR, affordable software that keeps track of salaries, work hours, benefits and performance reviews of the employees.
Orange HRM, a bit expensive software that categorizes HR functions into separate departments, which makes it user-friendly.
EmpXtrack Starter Edition, software that offers employee database and a self-service module that allows employees to edit and view their information.

Managing a payroll in a company is a task of utmost responsibility. A little discrepancy in the records can lead to employee dissatisfaction and thus, managing the human resources efficiently, is very important, specially in today’s time, when companies are finding it hard to retain their efficient employees for a long time. To survive in today’s competitive world, keeping updated with new technology is very important. HR payroll software is thus, an important investment for small, middle as well as big enterprises, for their smooth functioning and growth.