A recent survey shows that 63% of all small business owners underestimate the amount of time they spend calculating payroll. On average, small business owners who process their payroll spend over five hours per week on the task.

As an employer, you’re responsible for tax compliance as well as all withholding from your employees’ pay. You’re also on the hook for every other aspect of your business.

Why waste time on payroll management if you don’t have to? A payroll management system can save a small business owner precious time and money. Read on to learn how to find the best software for your business.

Does the System Suit Your Business?

Software for payroll isn’t a one-size-fits-all proposition, and no two businesses are exactly alike. Some factors to consider when searching for outsourced payroll are:

  • The size of your business
  • Number of employees
  • The employee benefits you offer
  • You and your employees’ desired pay schedule

If you offer benefits like health insurance and matching 401k, your system’s payroll management will need to be more nimble. You’ll also need to make sure any software you use complies with federal, state, and local tax laws. The last thing you need as a small business owner is tax compliance issues.

Does the System Payroll Management Have the Right Features?

Making sure your employees receive their pay on time is a vital factor for retention. Delays in payment or outdated payment methods can cause discord on the job. Any worthy payroll software system must come with modern features that ensure swift and easy payments.

Don’t forget a pay stub maker. Your employees will need fast access to paystubs, and the ability to print them quickly will keep them happy.

Direct Deposit

Paper checks are time-consuming for you and your employees. The last thing an employee wants is a paper check they have to take to the bank and then wait two to three days for it to appear in their account.

Pay cards are another form of inconvenient payment. Employees have to withdraw money from the card (and pay a withdrawal fee) and then deposit it into their bank account.

According to the American Payroll Association, 94% of American employees receive direct deposit payments. Any great payroll software system will provide swift direct deposit.

Isn’t This Outsourced Payroll?

Not entirely. Outsourcing your payroll means you pay a separate company to process all of your payroll needs. Outsourcing is an option for large companies with a high number of employees in multiple states. Third-party processing, however, remains an expensive investment for smaller businesses.

Payroll software does the work of a third-party company but keeps everything in-house. The plug-and-play features of this modern software reduce your time spent on calculating deductions and processing payments.

You Need a Payroll Management System

Do you wish you could eliminate the time you spend on payroll every week? Wouldn’t that time be better served in other aspects of your business?

You might think your only choice is to pay a third-party company. That’s not so! An effective payroll management system will free up your time and keep your employees happy. Do you need more small business news? Make sure to check out the rest of our page.