Whether you own a large or small company, you no doubt, need to make your payroll each week. This normally takes people and the right software. There are many brands to choose from, so how can you know which type of software is right for your company?
When it comes time to pay your employees, you want to make sure that the job gets done in a timely manner and error-free. You want to make the job as easy as possible, but there are many important factors to take into consideration when trying to decide how to handle your company’s payroll needs.
There are many companies these days who will do your payroll for you for a monthly fee. They can handle everything from time card entry to printing and mailing the payroll checks. This can take a great deal of strain off your time and budget. It’s important to choose the company that’s right for you though.
Another way to go is purchasing your own payroll software and hiring several specialists in this field to do your payroll “in-house.” There are many brands of small business payroll software on the market today. Choosing the one that’s right for your company can be challenging. Here are a few things to think about when deciding:
- Size of your business and number of employees
- What type of business is it? Do you need to maintain an inventory?
- Who will file your mandatory tax forms, such as Form 941, 944 and 940?
- Can your online payroll software print out W-2 and 1099 forms at year’s end?
- Does your company need to file state income taxes?
Some small business owners hire a Certified Public Accountant to do their taxes and to file all tax related documents. Even then, your CPA will need certain records and reports in order to do this job. They will require tax information on anyone your company employed during the tax year.
Online payroll software companies abound these days and you can often get a great deal on their products. There is fierce competition and so companies that sell payroll software online will offer some of its services for free or even allow you to use their product for a limited time so that you can check it out and get a feel for whether it’s right for your business needs.
If you are planning to hire a Certified Public Accountant to do most of the tax related paperwork for your company, then it is a good idea to meet with your CPA and discuss the best type of software for your company.
Here are a few areas to consider when purchasing online payroll software:
- Can the payroll software handle all your deductions? Can it handle reimbursements and employee loans? Is the payroll software capable of setting limits on deductions? Will it handle end of year resets?
- Earnings categories. Make sure the payroll software will support all of your company’s earnings categories.
- Will it handle Earned Income Credits (EIC)?
- Make sure the payroll software you are considering will allow you to print W-2 and 1099 forms to mail to your employees unless this is to be done by your CPA.
- Direct Deposits-Many employees these days are choosing direct deposit so make certain the online payroll software you choose includes this feature.
- Cash Flow Forecasting-Reports of all payroll activities can be an important tool in budgeting for next year.
- Security for your financial statements-Make certain that all your financial records will be completely secure.
Most manufacturers who sell online payroll software have people on staff who can answer your questions. Many will even send one or more of their people to your business to install the software and get it ready to go. They can stay at your company for several days and train your people in the use of the software. This will get your company’s payroll department up and running quickly and efficiently.
When considering online payroll software, be sure to inquire if this is a service that their company could provide. It’s a great way to make certain your employees are familiar with the new payroll software and can use it properly to do your weekly payroll.
It’s a good idea to sit down with the people in your accounting department as well as your Certified Public Accountant, and discuss which payroll software is right for you. If purchasing online payroll software, be sure you are comfortable with the company’s level of customer support and know if they will be there should you have any future problems with their products.