There are few things in this world enjoyed so unanimously that they’re worth naming a candybar after. There are understandably even fewer in the world of HR, with only one candybar deriving its name from this department: Payday. And although the joy of selecting a candybar at the supermarket diminishes as we grow older, payday is still an exciting term as an adult.
However, whether you realize it or not, there’s a lot of work that leads up to that sweet, sweet payday (and we’re not talking about the candybar). Payroll processing is an arduous process that only becomes more complicated as your business grows. This is why many businesses turn to full service payroll software to automate and streamline the payroll process. However, with so many products on the market, it can be hard to know which one is right for you (and even harder if you’re just generally unfamiliar with the software!). That’s why we’ve narrowed down our top full service solutions.
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What This Article Covers
Benefits of Full Service Payroll Software
A full service payroll software can help with a variety of tasks. It can assist with calculating how many hours of work employees should be paid for, facilitate direct deposit, generate tax forms and much more. However there are more benefits than just assistance with basic payroll tasks. Implementing a full service system can benefit your business as a whole on a larger scale.
Higher Retention Rates
You may have a team of employees who are truly dedicated to their work. However, no matter how much they love their job, it’s highly likely that their top reason for coming into work every day is their paycheck. Consequently, it’s incredibly important to make sure that your payroll processes are accurate so that errors are rare, if not avoided entirely.
Improper payroll practices can lead to high turnover rates. In fact, according to a recent study, nearly a quarter of American workers will begin searching for a new job after a single payroll error. That number doubles after the second error. When you have good employees, the last thing you want is to lose them, especially as a result of payroll errors that are totally avoidable. Fortunately errors like late or incorrect pay can be eliminated by implementing a full service payroll software.
A full service payroll solution can automatically calculate hours worked and process payroll, accounting for factors like sick time or overtime pay. And automated payroll functions can also help guarantee that payroll is always processed on time, so your employees never need to worry that their paycheck won’t arrive on payday. This capability eliminates the possibility of human error, ensuring that payroll is always accurately processed on time.
Boost Efficiency & Productivity
Small businesses spend as many as 10 hours each month on payroll processes alone, and medium to large businesses devote at least twice that amount of time to payroll. Fortunately, it doesn’t need to be such a time consuming task every month. Solutions that automate these processes can do all of this work for you, freeing HR managers up to focus on other issues.
Rather than manually calculating hours worked, pay rates and taxes each pay period, HR managers can focus on other tasks like scheduling and employee skills development. Many full service payroll solutions offer time tracking features, such as electronic clock-in and clock-out functions, eliminating the need for messy spreadsheets or other inefficient time tracking tools. These functions allow the system to calculate all of the relevant pay information for you and totally automate many payroll processes.
In addition to saving you time, solutions can also save you money. Automation allows HR managers to focus on other work, meaning that you will be spending fewer labor hours on payroll processing. Full service payroll software also eliminates the possibility of human error so you never have to worry about overpaying your employees. The American Payroll Association estimates that automation can reduce payroll costs by as much as 80%.
A full service solution will also assist with other HR tasks such as applicant tracking. These additional features will help to automate and streamline a variety of core HR tasks, making your HR department more efficient. A solution with additional functionalities will help with far more than just payroll, making it a valuable addition to any HR department.
Hassle Free Taxes
There are very few people on Earth who look forward to tax season. Calculating and filing taxes is a lot of hard and confusing work. There seems to be an overwhelming number of tax laws and regulations to consider, and unless you’re an expert in tax law, it can be overwhelming. This fact is only exacerbated for HR managers who must try to figure out taxes and forms for employees. Fortunately, full service solutions can help with this also.
Many products automatically check applicable tax law, ensuring that you’re always using the most accurate tax information. These systems can also generate tax forms and some even file your taxes automatically. This ensures that you’re always in compliance with the current laws and regulations at state, federal and industry levels.
Features to Consider
The obvious reason for implementing a full service payroll solution is to streamline your payroll processes. However, the size of your business and how your business approaches payroll will inform what you need a product to do. There are a few key features that you’ll want to be aware of when evaluating software to determine if it’s the right solution for your business. So what exactly are the features you should look for?
- Payroll Processing & Management: This is the foundation of payroll features as it facilitates the most basic payroll functions. It allows you to process payroll and pay your employees through their preferred method.
- Tax Filing Services: Correctly filing your taxes, while difficult, is important, which is why the best products will offer a helping hand. This feature can help to make sure you’re up to date on the most current tax laws, generate tax documents like W-2s and file those documents with little effort on your part.
- Compensation Administration: Payroll involves far more than simply paying your employees for their work. This feature addresses everything beyond the most basic payroll functions. A good compensation administration feature can assist with things like bonuses, adjustments to minimum wage and more.
- Reporting: As technology advances, business intelligence becomes increasingly more important for assessing business practices. A reporting feature will provide you with insights into your payroll processes by giving a high level overview of various aspects of payroll, such as budgeting.
Compare Full Service Payroll Software Pricing & Costs with our Pricing Guide
Top Full Service Payroll Solutions of the Year
Obtaining the title of one of the best full service payroll products requires more than just basic payroll functions. A truly great full service solution will have excellent core payroll functionalities, but will also be able to assist with other core HR tasks and be easy to use. We’ve compiled a list of our favorite products of the year based on data from our expert team of analysts to help narrow your search for the bestsolution.
Paycom is a full human capital management suite that covers all the basics of payroll, with a variety of additional features as well. This solution is best suited for small to medium-sized businesses and can assist with the most essential HR tasks. In addition to payroll, Paycom can assist with a variety of management functions, including time and labor and talent acquisition.
Often, one of the most difficult parts of payroll processing is calculating and filing taxes. Paycom’s tax management feature can assist with regular payroll tax filings, as well as calculating and preparing annual tax documents, such as W-2s. Paycom also integrates basic pay data and performance information to help you manage compensation. This feature can be used to enhance your current budgeting processes.
Employees can easily access and update all of their personal pay information, including direct deposit and mailing address. They are also able to submit expense information and adjust their withholdings. The employee self-service function also allows employees to view pay statements, W-2s, as well as time off accruals and deductions.