Accounting Software, Payroll Software

What is Payroll Software?
Payroll software provides a vast variety of computer applications which can help organize, maintain and process organization's employees’ salary details. The computer application which is used by an organization to maintain company’s payroll is defined as payroll software. Payroll software can consist of a simple spreadsheet or it can encompass an entire system of software applications. Payroll software is a must have application for every company these days.

Why Use Payroll Software?
With an increased number of companies using temporary, contract, or short-term workers, payroll has become a much more complicated task. Payroll software eliminates paper work by allowing you to automate most of the payroll process. Payroll software also decreases the amount of time you need to spend performing payroll tasks and increases accuracy and efficiency.

Types of Payroll Software
There are dozens of different types of payroll software that your company can use to help make the payroll process more efficient. Whichever type of software you choose, be sure to pick one that will meet the needs of your organization. Payroll software is generally classified according to three main types:

Off-the-Shelf: Off-the-shelf payroll software is available at any computer or software outlet. This type of software has been pre-designed according to a specific template, and is not customizable. It can be purchased at low cost and easily installed on your computer. It is especially suited for small businesses or home use.

Multi-User Customized Software: Multi-user customized software is usually designed for medium-sized or larger companies. Designed by a software company with your organization’s needs in mind, it usually consists of various applications that can be linked to the different departments in your company. Customized software generally costs much more than off-the-shelf payroll software.

Web-Based: Web-based payroll software consists of applications that can make use of the Internet. This is often used by large companies who need to access online bank accounts. Web-based payroll software makes tasks like taxation and direct deposit much quicker and easier.

Features of Payroll Software
The features of your payroll software system depend upon the type of system you choose and whether or not you wish to have it customized to your workforce. Payroll software systems can accomplish almost any task related to payroll. Here are some of the more common features of a payroll software system:

• Tracking of employee hours
• Calculation and printing of paychecks on a weekly, bimonthly, or monthly schedule
• Direct depositing
• Monitoring of sick and vacation pay
• Monitoring of yearly tax rates
• Monitoring of job pay history
• Completion of applicable tax deductions
• Electronic filing of taxes
• Production of year end reports

Most payroll software packages are compatible with existing accounting software packages or can be specially formatted to work with your accounting programs.

Payroll Software Support
You may be a little intimidated about using a fully computerized payroll system, especially if you aren’t that familiar with these types of computer applications. However, most software companies will provide you with good technical support to help get your payroll software up and running. Software support often includes:

• onsite tutorials
• telephone support
• online support

Costs of Payroll Software
Payroll software tends to range in price, depending upon the type of software you choose and the scope of that software. Off-the-shelf programs are often the least expensive and usually cost around $500. Customized payroll software will be much more expensive, but can be worth the money, particularly if your company is large and you have complex payroll needs. Customized payroll software can be upwards of $20,000.

Choosing Payroll Software
If you decide to implement a payroll software system, be sure to take into account your company’s individual needs. Be sure to consider:

• the size of your organization
• the number of employees you have
• the number of departments you have

These factors will play a key role in determining the type of payroll software system that you choose.

# posted by KK @ 11:15 PM