# A Beginner’s Guide to Choosing Payroll Software for Your Small Business
Managing payroll can be a time-consuming task for small business owners, especially as their team grows. Errors in calculations and late payments can not only create tension among employees, but also impact the overall success of your business. To ensure that your energy is focused on client communication and team management, it’s important to find the right payroll software that can streamline the process. In this beginner’s guide, we will provide you with essential tips to help you make an informed decision when choosing payroll software for your small business.
## 1. Understand Your Company’s Needs
When it comes to payroll software, not all options are created equal. It’s important to assess your company’s specific needs before selecting a service. Consider the following questions:
– How many employees do you have?
– Do you work with contractors?
– What is your budget?
– How important are usability and customer support to you?
To cater to the unique requirements of small businesses, you may want to explore options like OnPay. OnPay’s payroll software is specifically designed for small businesses, offering features such as the ability to pay both traditional employees and contractors. Additionally, its flat monthly rate simplifies software budgeting, while their white-glove setup ensures a smooth implementation process.
## 2. Insist on Direct Deposit
In today’s fast-paced world, employees expect access to their money whenever they need it. When selecting payroll software, make sure it supports direct deposit. Processing paper checks for multiple employees can be time-consuming and costly, with studies showing that each business check can cost between $4 and $20, factoring in additional “soft” costs. Direct deposit not only eliminates these expenses, but also offers a more secure method of payment, reducing the risk of lost or altered checks.
## 3. Check for Tax Features
Dealing with taxes can be one of the most time-consuming aspects of managing payroll. Therefore, it’s crucial to choose payroll software that can generate and file both federal and state taxes. Look for options that allow for quarterly and annual tax payments to provide flexibility. SurePayroll is one such service that offers full-service plans, taking care of both employee payments and tax handling. With their tax-calculation guarantee, they even take responsibility for any tax-related mistakes and handle them with the IRS on your behalf.
## 4. Consider the Cost
Understanding the true cost of payroll software can be challenging, as some services may have hidden fees. While a basic account might be suitable for some businesses, others may require advanced features, which could result in additional expenses. Pay attention to whether services charge fees based on payroll frequency or the number of employees you have. It’s recommended to choose a software that allows unlimited payroll, enabling you to pay your employees as often as necessary. Don’t hesitate to ask for examples of fee structures for businesses of different sizes to ensure transparency.
## 5. Look for HR Features
To save time and effort, consider selecting payroll software that includes HR features. These features can automate processes such as tracking employee paid time off (PTO) and sick days, allowing your team to submit time-off requests for your approval directly through the software. Additionally, look for software that offers features like organizational charts, roster management, in-app messaging, and document storage. These functionalities can streamline HR-related tasks and boost overall efficiency.
## 6. Ensure System Integrations
Integrations between your payroll software and other business software are crucial for seamless data transfer and reduced manual work. Take a closer look at the other software programs you’re using within your business. For example, if you already use QuickBooks for bookkeeping purposes, it’s worth exploring QuickBooks’ payroll services as well. By integrating both payroll and bookkeeping functions, you can eliminate the need for duplicate data entry and ensure consistency across your systems.
## 7. Grant Employee Access
Granting employees access to your payroll software can save both time and effort. Rather than manually entering their information, employees can create their own profiles and access necessary documents like pay stubs, attendance records, and tax forms. However, it’s important to prioritize data security when providing such access. Make sure the software you choose has robust security measures in place to protect sensitive employee information.
Conclusion
Choosing the right payroll software is a crucial investment for your small business. By considering factors such as your company’s needs, direct deposit capabilities, tax features, cost transparency, HR functionalities, system integrations, and granting employee access, you can make an informed decision that aligns with your business requirements. Streamlining your payroll process with the right software allows you to focus your energy on growing and managing your business effectively.
For more information and tips on payroll software for small businesses, visit [oceannenvironment](http://oceannenvironment.com.au/).