Many businesses start out by paying employees by hand. As a business grows, so does the number of employees, and along with those employees comes a growing variety of payroll needs. Managing earnings like paid time off, wage garnishment, overtime calculations, and a host of other options can become complex and nearly impossible to manage on paper. Enter: payroll software. Are you ready to say good bye to the long green sheets and manually processing payroll, for a long term solution that can streamline your payroll processes and save you time and lots of headaches? This article may just help you make your decision.

Tracking pay and deductions: Keeping track of pay and deduction types can become difficult as a business grows. Each employee has their own set of specific needs: hourly or salaried, regular or overtime hours, 401K participation or not, and these are just for starters! If you are tracking this information by hand, it becomes hard to know if what you have written down is the most current. A software system keeps track of this information with codes; each employee is linked to a code that fits how they are paid. This way you can be sure that the employee gets that pay or deduction type, and when payday comes, pay entry is a snap because calculations are done automatically behind the scenes, providing a fast and accurate pay process.

Tax payments: If you are worried about your payroll tax payments being timely and accurate, this may be a sign that it’s time to automate the process. Calculating these payments is a very complex and time consuming process, especially as your number of employees grows. Most payroll software programs will have the tax calculations you need already built into the system, so rather than calculating each employee’s tax by hand, you simply run a report for the tax form you need, and the information will be generated directly from the pay that you have entered into the system. Some programs even offer complete online filing “eFiling” capabilities, so that nothing needs to be printed, and the process is completed electronically, saving you money on costly forms, envelopes, stamps, and most importantly, your valuable time.

Support: Processing payroll by hand means you are going it alone, and have nobody to turn to when you have questions about payroll processing. This is a major advantage offered by most payroll software companies! Support services are offered to customers, so a source is available when questions or problems arise. This is especially helpful when there is a time crunch for completing your payroll!

Switching from hand-processing to a software program sounds daunting, but the majority of people are pleasantly surprised to learn how much time can be saved and how accuracy is increased after implementing a good payroll software program. To make the transition easier, create a plan for your switch, including a timeline and all the necessary steps. And when it comes time to make the switch, be sure to use all the help provided by your new software provider. You will be glad you did!

Remember the days of using a calculator and a typewriter to process payroll? Thankfully, those days are gone, and there are much simpler tools to make the process more efficient. Today, there are tools available to help ensure timely tax payments, accurate and complete payrolls, and to make sure employees are paid on time. These days, most businesses use one of two methods to process payroll: in-house payroll software, or a payroll service. As a business, you must choose the method of payroll processing that works best for you. Start out by asking yourself these simple questions.

What staff is available to manage the process?

No matter which processing method you use, you will need staff to manage the associated tasks. Many in the business world tend to believe that a payroll service takes less staff time, since it handles the tax payments and processing. While this may be true, be sure to account for all of the time your staff must spend collecting and entering time data for employees (if applicable), updating employee earning and deduction changes, running payroll reports, and generally making sure that data is accurate and timely. When using a payroll software program, it is a good idea to have at least one employee who is familiar with your payroll processes, and your payroll software. He/she should be able to set up employee information, enter time in the appropriate manner, process payroll, run reports, maintain tax filing schedules and be able to file them using your system.

Who manages what?

It is important to consider your current staff and their expertise, when you are deciding on payroll processing. For instance, if you don’t have a skilled HR person, you may lean toward a payroll service, since some of them offer HR services. If you have a person who is skilled in using in-house payroll software already, you might find it easier to stay with that. Consider who you have on staff and their expertise, and then whatever system you choose will come along with a much smoother transition.

Where is my data safest?

There is a major different in the location of your payroll data when comparing a payroll service to in-house software. With a service, your data is typically stored in a remote location and accessed via the internet. Of course, most services use strong encryption to provide security for your data. For payroll software, your data is stored on your own server, so the information is not available via the internet. However, you still need to be sure there is a good internal security system, since payroll data is sensitive, and you don’t want unauthorized employee’s to log in and view or edit sensitive data.

No matter whether you use payroll software or a service, payroll solutions are definitely a key way of ensuring your payroll is easy to manage, accurate, and that taxes are paid on time! And of course most importantly, that your employees get their checks. There are a few additional steps you can take to make your employees happy. Just by adding features that may already be included within your payroll solution, you may increase the happiness level of your employees!

Add direct deposit

You might just be surprised how much happier employees would be by receiving their pay directly deposited into their bank account, rather than receiving a paper check. Direct deposit allows employees to eliminate the hassle of going to the bank, and also reduces the chances of lost checks. Some payroll solutions even allow for the depositing of funds to unlimited bank accounts, allowing for Christmas savings accounts, additional checking accounts, child savings accounts, and more!

Offer pay card option

Some employees may not have bank accounts, and in those cases it can be difficult or costly for them to find a way to cash their paychecks. Pay cards can be a great way to solve this problem! Deliver employee pay on reloadable debit cards instead of paper checks and you have just made some of your employees very happy by providing them an easy way to access the money they have earned.

Translate pay stubs into employee language

Do you have employees who are not native English speakers? Depending on their language skills, these employees may be better able to understand the important details of their pay and benefits if you have them printed on their pay stub in their native language. Payroll solutions that offer this feature will typically allow you to enter the translation one time, and assign it to the applicable employee(s), and the pay stub will be printed that way automatically from then on.

Add important information to pay stubs benefit summary etc.

Are employees constantly asking how much vacation time they have left? How much they’ve contributed to their 401K? Details like this, and much more can be included on a pay stub. Surely your company has its own unique set of details which you may want to include on the pay stub, so add whatever is most important to your business and your employees.

Add online pay stub access.

Many payroll solutions are now offering the ability for employees and previous employees to access their pay stubs online! No more searching around for slips of paper to access the information they need. Provide employees or previous employees with a password, and they will be able to look up their pay stubs and even W-2 forms online, making it easy for both them and you.

Don’t assume that what you are doing is the best or only solution available! You could make your own job easier as well as bump up employee happiness by adding features you may already have in your payroll system.

Many of you processing payroll in a wide variety of states face a similar challenge: local payroll tax withholding amounts by work location and by residence for your employees. Here’s more about how it works, and also suggestions for handling it within your payroll software.

Employees who work at several different locations during the same pay period may require a different local tax withholding amount, determined by the city in which the work is performed. In addition, there may also be a local withholding tax for the city of their residence. Without a way to track both of these taxes, you can easily make the wrong calculations or spend hours of time manually trying to figure it out. Here are states with some cities that assess local employment taxes.

Keeping track of these withholding amounts is complex. But there is a way to handle this situation within your payroll software. You can create ‘Local Tax Entities’ within your payroll software, relate the tax entities to the appropriate employees, and then during time/pay entry you can select the appropriate local tax entity assigned to the time/pay entry. This is something not all payroll software programs will allow you to do. It is worth asking your software provider if there is a way to handle it in the program you are using. If not, give us a call. CenterPoint Payroll Software can easily handle payroll local tax withholding, and much more. (PS: if you are a Red Wing Software customer with a current Customer Care Plan, give us a call and we will help you get this set up!)

Since we are a software company, we work with customers nearly every day who are moving to a new system, and are often bringing some information over from their old system to the new one. (This is referred to as ‘migrating’.) Of course, we all have our own opinion when it comes to migrating. Your company may have migrated with great success and had no issues, and another may have run into some problems along the way that left a bad taste in their mouth. There are so many variables involved in migrating your software, all of which can affect the success of your migration. Here are some statistics from a survey taken by real customers of Red Wing Software and customers of other software products. Understanding the experiences of others who have been there can help you make your own migration successful.

The most important factor for a smooth migration is the support team. This answer got 59% of the responses - more than double that of any other choice selection! There are many things that can help with your software migration: training, help documents, videos, and more. But the support team is probably your most helpful resource during a migration. Anytime you have an issue or question, or need to know how to do something, you can just pick up the phone and give them a call. That’s why using support should be a big part of your plan to get the software up and running. You may feel like you are calling too often or bothering the support team, but that is their job, and they deal with the exact things you are dealing with every single day. Every call you make is an investment in your future with your new software.

36% of respondents said training was the number one thing they could have done to improve their migration experience. If you are thinking of getting training prior to migrating, you might want to consider this number! Once you start the wheels moving in the process of your migration, it’s hard to stop it and get training at that point. So think ahead when it comes to training. If you or your staff don’t know anything about the software and need to familiarize yourselves, plan to either attend training, or at least do some online tutorials, well before the actual migration process begins. Then you can get all of your questions answered and understand processes, which will greatly reduce your stress level once you start using the software.

Only 9% of people said they had a plan to help them stay organized. You might think you are far too busy with everything else involved in your software migration to come up with a migration plan. But just think about it, how lost would you be in your daily life without a calendar to keep track of what there is to do. Even if you just jot down some notes on paper, it’s a good idea to put a plan together for your migration. Key components to include are: who will do what, how long each step will take, and what will happen if one of the steps falls through or is completed late. When you are prepared for whatever happens, the migration process will go much more smoothly.

You know you have to make the switch from your old program to something newer! In the end, your company will reap the benefits of newer technology. Why not make your migration a successful one by heeding the comments of those who have been there and done that?