Why Use A Payroll Software For Your Small Business?

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Running a small business is hard. You’re responsible for ensuring everything is running smoothly, including the payroll system.

And by the system we mean you. It means late nights and lots of stress, especially when you’re starting to grow your team. But it doesn’t have to be that way. There’s a wide variety of payroll software for a small business, like yours.

As an entrepreneur, payroll solutions can take a lot off your plate. You don’t need to be part of the 70% of small business owners who are burdened by payroll-related activities, specifically payroll taxes.

In this article, we’ve compiled a list that shows how payroll software can benefit you and your business. We’ll also give you an overview of the best software you can check out

By the end of this, you’ll have a greater understanding of how it can make your entire payroll process more seamless.

What is a payroll software?

Payroll software is a computer program that helps businesses manage their payroll.

Why Use A Payroll Software For Your Small Business

It provides detailed reports and helps businesses keep track of their payroll processing. Plus, It automates the task of calculating salary, deductions, and taxes for employees among many other features. 

By utilizing it, you can streamline payroll operations, reduce payroll errors, and save time on manual calculations. The wide array of additional features you’ll get will depend on the software you choose.

For instance, some small business payroll solutions produce timesheets, attendance tracking, and unlimited payroll runs. Therefore, the choice of the best payroll platform would depend on your business needs and how big your team is.

With that, let’s get into the specific benefits you can get with an online payroll solution.

The 8 proven benefits of getting payroll software

As a small business, chances are you don’t have a fully-functioning human resources department that takes care of payroll.

But there’s no need to worry, thanks to the numerous small business payroll software available in the market today. It offers convenience and advantages, especially if you plan on scaling your business.

What are those benefits? Let’s start.

1. Save a lot of time

Small business payroll software solutions can save you a great deal of time. For example, it automates the tedious task of calculating labor costs, payroll tax payments, and other related calculations.

With all-in-one payroll software, you can stay on top of employee payments and ensure accuracy in your financials.

Some platforms even offer time tracking for your employees, which means you don’t have to check the employee attendance one by one.

The integrated payroll solution can automate that and consider the tardies and absences to give you the final amount. 

Moreover, some offer payroll tax filing services for an additional cost. This is going to save you hours of mind-numbing work. As such, you can focus on other aspects of your small business. 

For example, selling face masks is season-sensitive (e.g. flu and virus seasons). Therefore, face mask brand owners need to concentrate more when it comes to marketing during those critical periods. 

Using software allows them to use the many hours they save to develop a more cohesive marketing plan to sell their products. That way, they can ensure that they can achieve stability and a consistent cash flow throughout the year. 

2. Save money

A lot of HR practitioners specializing in payroll have high service fees. Fortunately, there is plenty of automated payroll software that offers affordable plans.

You’ll have access to many basic features, including direct deposit options. Of course, what the basic plan offers will vary depending on the platform you choose.

However,  full-service payroll software comes with advanced features, including the following:

  • Legal assistance
  • Automatic tax filing
  • Business Insurance
  • Access to a dedicated payroll specialist 

You’ll have to pay extra costs for more premium features. But even with higher-priced plans, it might still be cheaper than employing a full-time payroll specialist, especially if your team is still small.

Not to mention, saving money is especially crucial if you’re selling products that require huge initial investments like solar generator kits or panels.

Those aren’t cheap, so you’ll want to save money in any way you can. A great all-in-one payroll management software can help you with that with its many automated features. You won’t have to hire an expensive expert by the hour.

3. Avoid crucial errors

With the help of online payroll providers, you can avoid costly mistakes or human errors when it comes to managing payroll processes. For instance, the system can ensure that your employees are paid accurately and on time. 

3. Avoid Crucial Errors

In addition, payroll solutions can help you avoid getting into trouble with the law, especially when it comes to state or federal taxes.

Some platforms have many compliance tools that can assist you when it comes to tasks such as federal tax filings. Hence, it reduces the risks of filing the documents late or miscalculating.  

So, if you’re planning to be a long-standing company like Vivion, which has been around for 60 years, you have to start fixing your payroll system.

Plus, avoiding crucial errors ensures that your finances are in order if you want to grow. Looking back at Vivion, it’s a company that continues to expand and is involved in multiple industries like cosmetics and pharmaceuticals.

And software can help you reach that same trajectory. You don’t want to be hit with employee complaints or be served with penalties for the incorrect filing of documents to the government. 

Hence, you can continuously run your business operations for decades to come and grow in your industry if your finances are in order. Having a great payroll online tool allows you to be in control without doing the heavy lifting.

4. Improved employee satisfaction

We already mentioned that a full-service payroll system allows you to guarantee that there will be no late payments to employees. But that’s not all it can do that’ll keep your small group of staff happy. 

It makes it seamless to handle employee benefits such as vacation time and health insurance. This makes it easier for employees to access the benefits they need and helps them feel more secure in their job.

What’s more, some business software has employee portals. Thus, your staff can access details regarding their payment.

Keeping them in the loop or giving them information about their pay history or access to tax forms can enhance their experiences with your business. It’s because they’ll appreciate how you’re also making things convenient for them. 

And you know what they say, happy employees lead to happy customers. As great as AI chatbots are, nothing beats the customer service provided by human support staff. When they’re in a great working environment, that’ll show in the quality of their work.

5. Access from anywhere

One of the best things about utilizing the software is its accessibility.

5. Access From Anywhere

This convenience is especially helpful for businesses that have multiple locations or remote employees. With complete access to payroll data from anywhere, you can keep track of their payrolls more easily and efficiently. 

Additionally, accessing a payroll calendar from anywhere allows businesses to plan and ensure that all payments are made on time.

You don’t always have to be hunching over a desk running the numbers and fixing the payment schedule. You can be in another country and your payroll activities won’t cease.

6. Create an audit trail

The great thing about utilizing online payroll software is that it can help you create an audit trail. Thus, guaranteeing accuracy and consistency in your financial records.

By using a payroll service, your business can simplify the process of tracking employee payments and benefits deductions. As such, if questions arise from disgruntled employees, you have your records to back you up. 

Also, this software comes with an online portal. You can access all your records anytime and identify any discrepancies and errors in your financial records.

So, if there’s inconsistency, the audit trail allows you to pinpoint the problem and fix it. Not to mention, accuracy in your financial records is needed to stay compliant with government regulations.

The great thing about this is you don’t have to pay for the most premium plan to achieve this. Even the software that offers basic payroll features is enough to keep everything intact.

7. Expense management

Another advantage this technology can give you is to assist you in managing your expenses. Aside from streamlining the process of tracking and paying employee wages, it can also help you with your employees’ benefits administration.

7. Expense Management

Moreover, the online tool can automate the calculation of overtime pay and bonuses. It can also calculate taxes and deductions.

All of these can be included in the generated reports, which you can use to plan your business expenses accordingly and monitor your spending.

This is a great benefit, especially if you’re selling products that have to be shipped to different parts of the country like dress forms. You’ll have to ship the products to fashion schools or clothing boutiques. 

With payroll software giving you accurate reports, you can plan the best logistic options to get your dress forms to clients.

For instance, you can always check the cheapest flights or partner up with a freight company. Your strategy is up to you but overall, the payroll system can be a guide for you in managing the finances of the business.

8. Technical support and training

Payroll companies are committed to providing their clients with the best possible experience when it comes to payroll services.

They offer a range of helpful resources and key features to ensure that their customers can get the most out of their system.

This includes technical support and training, designed to help customers understand how to use the system and ensure they have access to the latest updates

Additionally, this help ensures you’re updated about things like labor law compliance and other regulations.

Several payroll software providers update their products every time the requirements for filing taxes changes. As such, you can be sure that you’re always complying with the law.

Since we’re on the topic of support and training, we have a bonus piece of advice. Payroll data is extremely sensitive. You and your staff should go through security awareness training to prevent data breaches

You can also ask your chosen payroll software provider if they take care of system updates to help secure your data.

Following our discussions of the benefits, it’s time to give you some of the best payroll software options for your small business.

The 3 best payroll software for a small business

There are so many available payroll solutions companies out there that it can take time to choose which one is right for your business. Thus, we’ve compiled a short list of the best ones in the market and provided some of their features.

I. OnPay payroll software

OnPay is a great payroll software that simplifies payroll management for businesses of all sizes and industries.

I. OnPay Payroll Software

It offers a comprehensive suite of features to help you manage your payroll, including integration with accounting programs and timekeeping software.

What’s more, it has a great team of payroll experts that can set up your account and help integrate the other business software you have with their product.

By paying for the payroll software, you’re also getting access to its HR tools that will assist you in managing your employees from new hire onboarding to multiple pay rates and schedules.

For example, if you’re running a housekeeping service, you have cleaners with different levels of expertise. Thus, their pay rates will be different, and the schedule of payment may also be different if their services are on a per-project basis.

Keeping up with projects, schedules, and their rate will be time-consuming to do manually. However, with OnPay to help you automate everything, you can ensure that you’re paying them the right housekeeper salary without delays.

Pricing 

The base fee is just $40 monthly but there’s an additional $6 per person. Your total monthly fees are easy to calculate since you can do it on the company’s website.

This is perfect if you only have a small team, especially since you’re getting many features that are considered add-ons for other brands.

II. Gusto payroll software

Gusto is a great payroll software since it’s easy to use, secure, and integrates with QuickBooks for seamless accounting. Not to mention, it has other features such as helping you set up a benefits package for your employees.

II. Gusto Payroll Software

It can help you offer health insurance, 401(k) plans, and paid time off. Gusto also automates the filing of your payroll taxes as well as offers top-notch customer support and direct deposits.

Plus, it has a self-setup system for employees to input their details. It also offers your staff access to a digital Gusto Wallet as well as a Gusto debit card.

So, let’s say you’re a national solar panel provider and installer company.

That means you’ll have staff all over the country. Instead of writing checks, your staff can just receive their money directly into their Gusto debit card and access their digital wallet. 

Hence, there’s no hindrance for them to get their wages on time no matter where they are in the country.

Pricing

Gusto offers three tiers of payroll software plans, and these are:

  • Basic: It has a base fee of $40/month plus $6/month/person
  • Plus: Pay a base fee of $80/month plus $12/month/person
  • Premium: You’ll need to contact them for details.
  • Contractor-only: The base fee is $35/month and $6/month/person.

As you already know, the more expensive plans offer more advanced features. Although, getting the basic plan still offers great support and features. 

III. Patriot payroll software

Patriot is an intuitive and comprehensive payroll software that makes it easy to manage all your payroll needs. It offers many powerful payroll capabilities, making it an excellent choice for businesses of any size.

III. Patriot Payroll Software

For example, it’ll allow you to integrate accounting software into its payroll system. It can also help track employee attendance, file payroll taxes, and has customizable inputs. Additionally, employees will have access to their online portal. 

And if you have contractors, you can also pay them through the software. You don’t create a separate system for them or process their wages manually

So, for instance, if you have a contractor for software development from a recruiting/consulting company like Trustshoring, there’s no need for you to track his time or process his payment on your own.

You can input his details and rate and the money will be sent to him through direct deposit. 

That way you can manage the payroll of everyone working for you on one platform. It doesn’t matter if they’re contractors or full-time employees.

Pricing

Patriot offers two plans, basic and full-service. The former has a base fee of $17/month plus $4/month/employee and contractor. It offers amazing basic features but you’ll have to do your taxes. 

The latter has a $37/month base fee plus the same $4/month/employee and contractor. The advantage of the full-service payroll plan is the tax-related tasks are handled for you.

Conclusion

You already have a lot of responsibilities, especially since you’re most likely still figuring out a lot of things as a small business.

But the painstaking tasks of payroll don’t have to be part of your daily worries. There’s a lot of payroll software you can choose from based on your business needs.

Here is also a list of the best payroll software in Dubai.

Do you want an accounting program integration? Would you like HR software as well? Do you want an automated tax filing feature?

It’s completely up to you which one will best benefit your business, you, and your employees.

The goal is to make the payroll process seamless, fast, and accurate. And together with payroll software, you can also improve your entrepreneurial life with Onlinebiz Booster. 

We provide you with more business solutions to help you scale more smoothly. Join our community now and have access to excellent expert advice and content.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

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