Things To Consider When Looking At Free Payroll Packages
If you’re business is in the process of trying to choose a payroll software package that does everything you require of it, you have no doubt realised just how difficult it is to find that perfect solution. The main reason for this difficulty is the sheer number of different packages that are out there. However, choosing your payroll system is of critical importance to the running of your business, so you want to make sure that you make the right choice.
Smaller businesses that only have a handful of employees have quite often given up on finding the right package, and use the ever trusty pen and calculator to do their wages at the end of each week. While this may be an option in the short term, every successfull business grows, and as it does so, it’s employee numbers grow as well. In the end, a manual payroll system just becomes too time consuming and unwieldly. Not to mention the fact that doing it manually also leads to more cases of human error. The worse case scenario is that you end up with some heavy fines, or even in court, because of a simple miscalculation.
Once you have reached the threshold were using a manual based system is no longer viable, you need to ask yourself a few questions. For example, will your software need to handle the creation of checks, or will you still continue to do that side of it manually? Would your employees benefit from having a direct debit system set up, so that their pays are automatically deposited into their accounts at the end of each week?
One of the main concerns that a business owner has with switching to a computerised system is the security aspect. You need to ensure that the sofware you choose is encrypted and password protected, so that you don’t end up with the very real threat of hackers, or even disgruntled employees, breaking into your system. For this reason, it is a good idea to go with a known software provider, one that is recognised in the field and respected by other businesses.
Some of the aspects that you need to consider when researching your payroll software are..
- Workers Compensation
- Insurance (eg, health and life)
- Union Fees
- Sick Days and Holidays
- Overtime Hours
- Child Support
- Emplyee Expenses
- 401(k) or Superannuation Payments
- Changing Pay Rates
- Taxes
Remember that the more research you put in beforehand, the more likely you are to find the right package the first time around. This is important, because starting a new payroll system involves a lot of work up front inputting employee data and getting all the foundations in place. Once you have done this once, you will realise that it is not something that you want to be doing over and over again, as you test different systems.
