Situation: You are using an outdated software system, and there are distinct benefits such as improved efficiency and improved customer satisfaction. But you don’t want to move because the economy seems dismal, and you want to keep your money instead of spending it on software. Here are some questions you can ask yourself to help make the decision easier. If you are honest with your answers for each of these questions, your decision will be an easy one, either way.

• Will the time and money saved pay off the new system? How long will it take?

  Accounting software and payroll software for your business typically costs money. If a system is good, it will improve your efficiency enough that the money paid is well worth it. For instance, invoices are processed faster, bringing in cash more quickly. Inventory is accurate, so you know how many items to order and when to order them, so you keep just enough in stock, saving you money on costly ‘dead stock’ or backorders. These are just a few of the benefits you may be gaining by upgrading your software. Be sure that the benefits you gain are immediate enough that the cost of upgrading is worthwhile.

• Will customers benefit daily from the switch?

  You might be wondering, “What can accounting and payroll software do for my customers?” One shining example is that you can give your customers the information they request while they are on the phone, saving you the time of checking and calling them back. How many items are there in stock? What is my outstanding balance with your company? When is my payment due? Every time you have to check something out and call a customer back, that customer is waiting and you are spending double the time on the phone. If you upgrade to a new system, consider your customers. If they benefit daily from your software upgrade, it is probably worth it.

• Do you have a plan to make a smooth transition?

  Any software move involves a learning curve. With a plan in place, you can make that curve much shorter, and the whole process much smoother. Work with your software sales representative to help you develop a plan and timeline for your software switch. This plan can include steps for your own company, as well as additional tools offered by the company providing the software. Many software companies provide a variety of training and support methods. Find the ones that are right for you, and put them in your plan, so you won’t be tempted to ditch the new system halfway through the transition.

• Is there a compelling reason to move, outside of just technology?

  Some people just love technology for the simple fact that it’s new and cool. Especially during a slow economy, you have to ask yourself if this is the reason you are switching, or are there other compelling benefits? Switching for the sake of only technology is not a good idea unless you happen to have lots of spare money sitting around, or your software simply won’t work with new operating systems. Switching because there are true benefits to you, your business, and your customers is definitely reason enough to make the switch, especially during a slow economy.

You are offering your employees a retirement plan, and perhaps you have even chosen to contribute money to each of their plans. Congratulations! Now think about how you keep track of that retirement information. You can keep the costs of managing your retirement plan down by automating the tracking of that information. Here are some ways to streamline it, and keep employees happy!

Use software instead of a spreadsheet.

Tracking 401(k) deductions with a payroll software system allows you to set up the calculations, and the 401(k) contribution is automatically calculated during time entry. This eliminates your manual calculation, which of course saves time and also reduces errors. You will wonder how you ever got by keeping track of this data in a spreadsheet.

Set up 401(k) deduction limits for employer and employee.

The ability to set up limits within a software system is extremely helpful! By setting up limits, you can be assured you take out no more than the deduction allowed by the federal government, or the amount specified by the employee. You can rest easy, knowing that you are compliant; whereas a spreadsheet makes it difficult to track that information.

Set up effective dates.

If you offer a 401(k) for employees after a period of employment, how do you ensure they are starting to receive those benefits once they become eligible? A great way to remedy this is to set up an effective date within your payroll software system, based on the parameters you set. That way, employees will start receiving benefits as soon as they are eligible.

Export a 401(k) file.

How do you send your 401(k) retirement plan administrator the data they need to manage your plan? Use your payroll software to track 401(k) retirement information, and generate a file right from your software to send directly to your retirement plan administrator. By generating and sending a file, you will eliminate the additional step of gathering/re-entering the information, which could result in manual entry errors. This will also save you significant time!

Show employees the value of your 401(k) program.

Offering a 401(k) program is a valuable employee benefit. Show your employer share of the 401(k) contribution on the payroll stub for employees to see, and they will appreciate each week the contribution they are receiving from you, their employer.

By using these steps, you will improve your 401(k) management, and also keep employees happy with this valuable benefit you are offering.

Processing W-2s is one of the most important and burdensome requirements businesses face every year. It is the time of year many payroll administrators dread for obvious reasons.

Making a mistake on an employee’s W-2 not only puts the business at risk of costly fines and penalties, but also creates a great deal of extra work to fix.

In addition to the liability issues when processing W-2s there is also the matter of effort needed to print forms, preparing them for mailing, and the costs incurred completing the whole process.

Complete W-2 eFiling services can eliminate most of the pain associated with processing W-2s in-house. In the past, these services were provided by payroll service providers and were often very expensive. The addition of complete eFile services to many payroll software solutions, has made this option very affordable, and offers significant efficiencies to small businesses.

What to look for in an eFile solution.

When determining whether a complete W-2 eFile solution is the right choice for your business, there are several features to look for.

1. The solution should be native to your payroll solution and automatically convey your payroll data directly from your payroll entries. Manual entry of your payroll data opens the door to transcription errors and lost time trying to locate and fix errors.
2. solution should include automated error checking that complies at minimum the standards set by Accuwage and eVerify.
3. It should provide the ability to save a history file of each filing and the ability to print file copies if desired.
4. It should include all filings required: Federal copies and State copies including the Federal W-3 and any state reconciliation forms required.
5. It should automatically print and mail employee copies directly to your employees
6. It should also host employee copies to a password-protected website so terminated employees who have change addresses can access their copy and print it as needed.

Additional features to look for.

Outside of the minimum requirements listed above there are several other features that provide benefits and efficiencies.

1. It should provide the ability to schedule when your employee copies are mailed, when your Federal filings are made, when your State copies are filed, and the ability to make corrections at no charge up until the filings are made. Often times when the employees receive their W-2s they recognize a change that needs to be made. The ability to file a corrected Federal and State filing prior to their submission date will save the need for W-2 Cs or other additional forms.
2. It should allow you to review all employee data in a spreadsheet format, which allows easy editing, and the simple entry of additional information required such as third party healthcare.
3. It should include forms for all states that require W-2s and all US territories.
4. You should be able to find testimonial evidence from customers who have used the solution with your native payroll solution.
5. The solution should have at least 3 years of history in providing this solution to assure that the solution is a mature and well-tested product.

Cost.

Finally, the service must be affordable. Typical in-house cost of processing W-2s is from $3.85 to $4.35 per employee. This cost includes processing time, forms, envelopes, and postage.

A fair price for a complete service solution should be below the lower limit of in-house costs.

Remember when payroll was processed by hand and tax forms were typed up on a manual typewriter? Well, as you know those days are long gone. Payroll software companies emerged, and software has since evolved into an indispensable tool for companies processing payroll. Instead of calculating deductions by hand, the software does it for you each time payroll runs are calculated. Instead of writing out checks, you simply print them from your computer. And no more worrying about tax calculations since the software computes them for you. Most businesses will attest to the fact that payroll software has made their lives much easier. However, a much more complex issue is finding a system that is right for your business. There is a wide variety of companies that produce and distribute payroll software. Here are some main differences among them, to help you choose the right company and software for your business.

Pricing Structure

Not all payroll software pricing structures are created equal. Some products seem affordable at the start, but quickly become expensive when you realize you need to purchase additional modules to go along with the software. Before you purchase anything, be sure to ask for a comprehensive quote for the first year, and the year after. Ask your sales representative to include things that are often forgotten: direct deposit, electronic tax filing, multiple state tax calculations, multiple companies, multiple users, support, training, and enhancements. Pricing for software can be complex, and varies greatly among software vendors. It is important to consider your needs at the start and get a comprehensive quote, so there won’t be huge surprises later.

Support and Training

Most payroll software companies provide support for their customers. A wide range of support methods exist, including telephone, e-mail, online, community forums, and more. Training may be provided in live classes in person or via the internet. Some companies provide learning documents and videos on their site for their customers to learn at their own pace; other companies even give the option of onsite training. Think about which method of support and training you prefer, and ask your vendor if they offer that method. Since there is a great variation of support and training options, you will be surprised what some companies offer that others don’t! Be sure to inquire about the cost of these options as well, since some companies include it in one cost, and others charge additional fees.

Software Upgrades and Enhancements

Payroll software companies must keep their products current due to ongoing state and federal tax rate changes, changing payroll regulations, and more. Many software companies also make ongoing improvements to enhance the function of their programs. How can your business get those changes? Some companies charge separately for them, and some include them in one price. Be sure to find out the costs of upgrades and enhancements, since you will need them both at some point. The least you will need for payroll processing are the tax updates, so be sure to get that information ahead of time.

Payroll software companies definitely offer a wide variety of options when it comes to pricing, support and training, upgrades and enhancements. Dig deeper and get the details on these options before purchasing your new Payroll software, so there won’t be surprises as time goes on.

Processing your payroll can be time consuming and often, a real headache! Have you taken the time to see what payroll software can do for you?

No matter how big or small a business is hours can be spent managing the financial aspects of the company, including payroll. Payroll particularly can be very time consuming, since there are so many aspects to consider: Full-time hourly employees, part-time hourly employees, seasonal employees, salaried part-time employees and the list goes on. Let’s not forget the vacation pay, bonuses, direct deposit, manual checks, and then there are taxes! No wonder just the mere thought of payday gives you a sharp pain in the head!

Stop for one moment and look at how much money and time you spend processing your payroll. Many businesses still track payroll by spreadsheet and hand-write checks or send their records on to a payroll service. When you process payroll by hand, it isn’t just a weekly, bi-weekly or monthly event; it’s a full time job! Payroll information is ever-changing. There are daily postings, hours worked, vacation and sick pay information, and other employee changes which all must be recorded in the payroll system. That takes a lot of time and effort and really lacks efficiency. Once all of the data is entered, the check writing or direct deposit is the easy part.

Many businesses can save money by streamlining their payroll processing and add that profit to their bottom line by using payroll software.

Here are some things to look for when shopping around for payroll software:

• Flexibility: In order for you to benefit from payroll software, you will want a system that can be flexible to handle your specific needs. There are many payroll software programs available in the market today. You can find standalone programs to use with your general ledger, or payroll software that fully integrates with an accounting system is even better.
• Versatile, Easy Setup: The purpose of payroll software is to save you processing time and money. Look for a program that has tools and wizards to help you easily set up your payroll software the right way. Also look for software that gives you the ability to modify the reports you need and gives you the information you require.
• Options. Options. Options. Choose payroll software that is capable of handling many aspects of payroll reporting, not just collecting information to print a check. For instance; a software that can handle piecework pay, seasonal pay, shift differential pay, hourly pay or even a combination of any of these payment methods. By implementing these key features, you can have the system do the correct calculations for you. This saves considerable time. Also, don’t forget Direct Deposit and Publish Pay Advices. They are great options to have in your payroll software; employees love them!
• Automated W-2, State and Federal Forms: Processing time and money can be saved if your payroll software offers automated W-2 and State and Federal forms with eFiling. Data from your payroll is automatically added into your required forms for fast eFiling or printing on plain paper. If possible, choose a full-service W-2 and 1099 fulfillment option as an added resource.
• Experience, Expertise and Customer Care: Take care to look for a payroll software company that is experienced in development and has the expertise to create software that can handle your needs as you grow. Finally, take a look at the support and customer care the product offers. Is there personal attention offered? When you call for telephone support, do you actually talk to a person and not a recorded auto attendant?

See the Light! When all is said and done, remember, the purpose of purchasing payroll software is to utilize the wide range of additional tools that can help your company increase efficiency, reduce costs, access the information you need, and most importantly get your employees paid on time!