When you have employees, you need to pay them. Instead of manually calculating gross pay, payroll taxes and deductions, and net pay, you might opt for payroll software. With the right software, you can run payroll in minutes—not hours—each pay period.
But what kind of payroll features do you need to maximize your time savings and minimize administrative headaches?
Read on for five payroll features and benefits to simplify your payroll process and help you get back to business.
5 Payroll features and benefits
Payroll is the process of paying your employees. But it isn’t as simple as cutting a check for hours worked. You must calculate and withhold payroll taxes and deductions, like 401(k) contributions. You also need to remit taxes and deductions to the appropriate parties.
Software handles payroll calculations and, in some cases, tax filing and deposits. But no two software providers are the same. Some systems cater to small and midsize businesses, while others focus on large corporations. As a result, the features can vary. Some systems might have too many features. Others may not have enough.
Although your payroll needs are unique, here are five popular payroll software features to simplify your workload.
Payroll features and benefits #1: Hands-off tax filings and deposits
As an employer, you’re responsible for withholding federal, state, and local payroll taxes from employee wages and remitting them. You must also file tax forms, like Forms 941 and 940, to report wage and tax information.
Handling tax filings and deposits is time-consuming and can leave room for error. Full-service payroll systems handle tax filings and deposits on your behalf, making this a must-have feature for busy business owners.
When shopping for software, look for a full-service payroll provider that offers:
- Federal payroll tax deposits and filings
- State payroll tax deposits and filings
- Local payroll tax deposits and filings
- Quarterly and year-end payroll tax filings
Tax filing delays and mistakes can lead to expensive penalties. Consider looking for a provider that offers a tax filing reliability guarantee.
Payroll features and benefits #2: Easy setup
Whether you’re switching from another payroll software provider or using software for the first time, getting started is half the battle. Onboarding with a new payroll system can be particularly challenging if you switch midway through the year (pro tip: year-end is the easiest time to sign up for payroll!).
To get started, you’ll need to enter information like your:
- Tax ID numbers
- Account numbers
- SUTA tax rate
- Employee names, Social Security numbers, and addresses
- Employee pay rates and bank account information
- Deduction and contribution details
To streamline this process, some payroll providers offer easy payroll setup options, like bulk imports and step-by-step guidance. Some payroll providers even offer free setup, where you provide payroll information, and the company handles account setup.
Payroll features and benefits #3: Customer support
According to one study, 95% of consumers say that strong customer support is essential for brand loyalty. The customer support you receive from your payroll provider should be no less than the best.
After all, you’re trusting your provider with your company’s payroll information. Shouldn’t you also trust that they provide reliable, expert support each time you contact them?
Although some providers charge extra for customer support, others offer free customer support in each plan. Also, look into customer support hours and contact options (e.g., phone).
Want to get a feel for the support you can expect after becoming a customer? Call prospective providers and ask to speak to a representative. You can also read online reviews to see if customer support experiences are consistent.
Payroll features and benefits #4: Customizable payroll
Your business is unique. Shouldn’t your payroll software accommodate that?
Look for a system that lets you customize different aspects of your payroll, including:
- Your pay frequency
- Money types (e.g., bonus payments and reimbursement payments)
- Hour types (e.g., overtime and vacation hours)
- How you pay employees (e.g., direct deposit, paychecks, etc.)
- Deductions and contributions (e.g., 401(k), medical, etc.)
Some payroll systems offer a self-guided demo so you can explore the software to see if it meets your company’s needs.
Payroll features and benefits #5: Free direct deposit
Ninety-three percent of employees receive their wages via direct deposit. Do yours?
Look for a provider that offers free direct deposit with expedited options. Direct deposit should be fast and convenient for you and your team.
Bonus points if your payroll software includes a free employee portal where your team can manage bank accounts for direct deposit themselves.
Other notable mentions…
There are several important features not mentioned in the above list that deserve attention. Other notable mentions include features like:
- Net to Gross tool: If you give employees bonuses, you’ll want to use a Net to Gross Payroll tool. Enter the amount you want employees to take home, and the software will gross up the calculations for taxes.
- Employee portal: For a hands-off payroll experience, look for software with a free employee portal so employees can access their pay stubs, pay history, time-off balances, and more.
- Unlimited payrolls: Look for a payroll software provider that doesn’t charge you per payroll run. With unlimited payrolls, you can run as many payrolls as you want for the same monthly fee.
- Mobile friendly: Research software you can access anywhere with an internet connection. That way, you can pay your employees at the airport or on the beach!
- Contractors in payroll: Do you work with 1099 independent contractors? You may want the ability to pay them alongside your employees when you run payroll.
- Payroll reports: How much have you paid employees year-to-date? How much did you withhold for payroll taxes? Payroll reports offer invaluable insight into your payroll data.
- Integrations: Your payroll software’s ability to integrate with other systems (e.g., 401(k) plans, accounting software, workers’ compensation insurance, time and attendance software, etc.) can streamline administrative tasks.
Make a list of the payroll features most important to your unique business needs. You can also check review sites to learn about other business owners’ experiences.
Does Patriot’s top-rated online payroll have the features your business needs? See for yourself when you sign up for a FREE trial here!
This is not intended as legal advice; for more information, please click here.
