Direct deposit is a feature included within a payroll program that allows you to deposit employee pay directly into a bank account. Payroll software programs vary when it comes to their direct deposit capabilities. For example, some systems allow you to deposit funds to your choice of bank account, while others require the money to be transferred via their service. Here are some factors to consider when trying to find the right direct deposit feature for your business.

Transfer options.

There are two main ways payroll systems allow you to transfer pay. You can either have the funds deposited directly into each employee’s individual bank account from your own choice of bank, or you can use a service which takes the funds and deposits them into the employee bank accounts for you. By using your own bank to deposit the funds, you may save money; however some banks do charge for this service and fees vary greatly. Using a service to deposit the funds does incur ongoing costs also, so be sure to check the costs of the service before deciding on one.

Deposit employee pay and third party pay.

Obviously the most important aspect of direct deposit is the ability to distribute employee pay to their bank accounts. But some payroll systems go a step further, and also provide an option to deposit third party pay electronically. This function allows employers to pay third party payees, such as 401K management companies or insurance companies, via electronic deposit, rather than processing a check manually. Sending these payments electronically can be a huge time saver when compared to writing and sending paper checks.

Deposit to multiple bank accounts.

A basic direct deposit system will allow for one account, but some systems allow for multiple deposit accounts. This way, employees can deposit part of their check to checking, part to savings, another part to a holiday savings account, and so on. While this typically does not cost the employer extra, it provides employees with the perk of more comprehensive money management options. So it’s a win-win!

Pay cards

Some payroll companies offer employers the option of loading (depositing) employee pay to a pay card (a debit card) instead of into a regular bank account. This is an excellent option for employees who do not have bank accounts. For those without bank accounts, it eliminates concern about where to cash a check, and also the associated check cashing costs.

It pays to use direct deposit, and all the features that go along with it. Check into your payroll software and what it can offer you for direct deposit. You could be on your way to great time savings and happier employees.

MICR stands for “Magnetic Ink Character Recognition” and is a special kind of ink that can be detected by check processing machines. Some payroll software systems offer the ability to print checks on blank check stock, using MICR ink. This feature can benefit some businesses greatly and make payroll processing much easier. Here are some of the ways printing your checks on blank check stock with MICR ink can help you and your business.

Various check designs, various companies.

If you run the payroll for multiple companies, the MICR printing option could save you some serious time and frustration. Instead of having to load up the correct check paper for each separate company, use the MICR option and print checks with different designs onto the same blank check stock. This can also save you money if suspect there will be an address change or other information revision to your check stock. Instead of throwing out the old stock, you will be able to simply change the design and print onto your blank check paper. Using the MICR option allows you to print checks using multiple bank accounts too, especially helpful in the case of doing the payroll for separate companies.

Print check signature.

Another benefit of MICR printing is the ability to print a signature on file right onto your paychecks, especially helpful if the signing party is away or cannot sign the checks. Payroll software will typically require you to set up a security policy for each signature, so that only users who are given permission will have access to print checks with them. This is especially important, since the printing of checks would typically be allowed to only a very few people.

Sometimes we do something the same way for so long, that we don’t realize there is a much more efficient way to accomplish it. Even when we know there is something better, it’s hard to make the switch. Change can be hard. But if there is clearly a faster and more efficient way of getting your payroll done, you could save yourself wasted time and agony. Here are some of the top time wasters when it comes to payroll processing.

Double entry

If your employees are filling out a time sheet, and then you are taking that data and entering it by hand into a payroll software, you are double entering data. This not only wastes time, but leaves an additional margin for error. You can streamline that process by implementing an electronic time clock, where you pull in the hours electronically into your payroll system. Yes, there is an added expense for the time clock, but you will quickly recoup that expense with the time saved! You will wonder how you went so long without it.

Tracking employee leave time on a spreadsheet

A surprising number of people could use their payroll software to track employee leave time, but instead use a spreadsheet and manage the process manually. Maybe the thinking is that their leave calculations are too complex for software to compute or that the setup will take too long. Either way, it’s worth your time checking into whether your payroll software can handle your employee leave calculations. A good payroll system will be able to handle a variety of calculation methods and make the job of calculating leave a whole lot easier for you, and also maintain accuracy.

Troubleshooting problems on your own.

Yep, we are a payroll software company. So you might be thinking this is a plug for us, but it’s not. Far too many people think they can personally handle questions, problems and issues they are having with their payroll, when a payroll support team could easily help them resolve questions and issues much faster. So, no matter whose payroll software or service you are using, opt in for a support plan. Calling for help and getting your issue resolved right away will bring peace of mind, and may also stop the issue from snowballing and becoming worse!

Once you stop the payroll time wasters, payroll processing will go much more smoothly, and you can expect accuracy to be improved as well.

With the constant growth in technology, many business processes are becoming more streamlined. Payroll processing that used to be done over several days with paper and pencil can now be done in minutes with the right software. Since the inception of companies using payroll software to process payroll and write checks, even more tools have become available to make the process easier, more accurate, and more efficient. Here is a list of today’s must-have payroll software tools for a business to improve payroll processes.

1. Direct Deposit: This tool allows a business to transmit pay data electronically directly into employees’ bank accounts without printing pay checks. Information is usually transmitted from the payroll software to the bank accounts securely in a bank-friendly format. By using direct deposit, companies can save money on pay check processing time and supplies. Many employees also prefer direct deposit because it saves them trips to the bank and also eliminates the problem of lost pay checks.
2. Electronic Tax Filing: Whereas mandatory end of year tax filing has traditionally been done on paper, today’s payroll software programs have built-in tools to make electronic tax filing (“e-Filing”) simple and accurate. By filing taxes electronically, a business can eliminate the cost of forms. Tools are now even available to allow employees access to W-2 forms online instead of having to wait for the paper version to arrive by mail. Filing electronically can also reduce the stress of tight, end of year deadlines because transmission is instant.
3. Time Clock: If employees are required to fill in time sheets, re-entry into a payroll software system leaves room for entry errors and also duplicates efforts. By implementing an electronic time clock, a business can remove the margin for error, keeping employee pay checks accurate. Most time clocks are simple to use, and pull information in a standard file format so that time clocks will operate with most payroll systems. Most payroll software systems allow for mapping of information to be pulled in from the time clock to the software.
4. Advanced Earnings Matrix: With an advanced earnings matrix (which may go by various names depending on software developer), a company sets up each employee with a separate rate for all ways they can be paid. For example, if a company tracks pay by department and by profit center, each employee record is set up with a pay rate for every department and profit center combination in which they may work and be paid for. All earnings and deductions are calculated accordingly when time is entered. An advanced earning matrix saves time by drastically cutting down on the number of pay codes that are necessary to track employee pay. Instead of using a long list of codes, time is simply entered by choosing the factors they set up.
5. Custom Reporting: Do not underestimate the fact that your company is unique. Some payroll systems now pay tribute to this fact by offering simple tools which allow the user to customize reports, and to name and save them for later use. By using custom reporting, a business can easily see pay data in a timely manner, and filter out only the information that is important to their own organization.

Managing payroll for multiple companies is a big task. And the more locations you manage the bigger task it becomes. Whether it’s paying employees, managing employee information, running reports by location, or the multitude of other payroll functions you must handle for multiple locations, you need a way to stay organized, accurate, and timely. Here are some ways your payroll software can help.

Unlimited Companies

If you manage the payroll for multiple companies, it’s crucial for you to have the ability to keep track of them separately. Many payroll systems allow for just one company, some have a limit for the number you can manage within the system and others allow for unlimited companies. Due to the variations in payroll systems, be sure you choose a system that can grow with your company and handle all of the different companies for which it manages payroll.

Track Data by Location, Department, Project, etc.

Tracking the payroll data for different companies can be a helpful tool. For instance, maybe you want to compare the labor costs by department or by location. Setting up and tracking that information in your payroll system makes it easy to pull reports at any time to do the comparisons you require.

Direct Deposit with Publish Pay Advice

Managing the payroll for multiple companies means you may not be near enough to some of the companies to deliver physical pay checks to employees. This issue can be solved by paying employees via direct deposit, and delivering their pay advice or ‘stub’ electronically via e-mail and that is accessed securely on the internet. This eliminates the need to print anything at all, which also saves money on paper, ink, time stuffing envelopes, and more.

Multiple State Tax Filing

Having multiple companies typically involves employees in multiple states, and therefore you must be certain your payroll software can handle that, since not all systems do. The best way to be sure your system processes multiple state tax filing, is to implement a system that can handle the tax forms for all 50 states! Even if you don’t require it now, chances are you will down the line.

Import Time Electronically

To streamline the entry of pay for multiple companies, importing time directly from an electronic source can be helpful. A digital time clock, for example, allows you to import the time and populate the hours directly into your payroll software program, reducing errors by eliminating the double entry of information. Other ways to capture time include hand-held time capture devices and online time entry.

Customized Reports

No two businesses are alike, and that’s why each business has its own way of running reports. With different companies, the ability to run reports the way each company desires can be extremely helpful. Customize payroll reports to the exact specifications each company chooses, and then save and name them for easy access whenever you want to run them.

Check Designer

Each company’s payroll likely requires different check designs or styles. One way to handle this is to use your payroll system’s check designer to create and save appropriate check designs for each company. Many designers will allow you to add, delete or edit fields of information and even add a logo. You can go step further and print checks on blank check stock using MICR encoding. The MICR function also allows you to print a custom signature from a file on pay checks, especially helpful in the case where the person signing is not always nearby or available to sign pay checks.