Your Complete Buyer’s Guide For Payroll Software
18 Sep 2020
After all that extensive “shopping” for your payroll software and you have finally narrowed it down the selected few, how do you eventually evaluate which payroll software is best for your company?
Most of the time, these payroll software vendors will grant you a free trial or demo to test out their system. While this is no doubt handy in getting the real feel of the payroll system, it consumes a lot of your valuable time when you have two or three payroll software to play around with.
Instead of spending time trying out figure out every nook and cranny of the system, here is a complete buyer’s guide for payroll software to help you spend that time wisely and get the most out of your potential payroll software.
Perform your daily payroll tasks
While the salesperson might be promoting you all the “fancy” stuff that the payroll software has, it is important to focus on the basic. After all, you will be using it daily to perform your critical payroll tasks.
Set up a few dummy employees in the system together with the required personal and payroll information. Generate a pay run as per how you would do it on a monthly basis. This includes generating pay reports for monthly and hourly-salaried workers, disbursement of pay, tax filing reports and functions etc. This will give you an overall feel of what the payroll software has or lack thereof. Additionally, it allows you to see how easy and quickly it would be to generate pay reports or retrieve the critical pay information.
Some may even consider doing payroll parallel testing. Payroll software parallel testing is typically the final phase and arguably, the most critical aspect of a new payroll system implementation.
Why is it so important?
Payroll software parallel testing is critical as it ensures that the new payroll software is accurately calculating the payroll. While the payroll output from both software need not be exactly the same, there should not be any unexplainable large discrepancies. Hence, running a payroll software parallel testing is to prevent any large discrepancies once the new payroll software goes live, thus ensuring that the transition to the new payroll software is smooth and problem-free. In our guide for payroll software, we touch on the basic steps on how to do the testing below.
A payroll parallel test comprises of the following basic steps:
1. Export and save all the payroll information and outputs for a selected pay cycle from the old payroll system.
2. The exported payroll information for the selected pay cycle should be entered into the new payroll system.
3. Run the payroll using the new system.
4. Using the results obtained from the new payroll system, compare it with the results from the old payroll system. Address any stark inconsistencies and if the differences can be explained appropriately.
Payroll software’s critical functions check
What might be key functions to a company might be a bane to another. Before you start testing your payroll software, identify and note down which are the critical functions that your company needs. It could be key payroll functions such as integration with timekeeping systems or automated tax filings etc.
If you are unable to find these functions while evaluating your payroll software, do get your salesperson to demonstrate to your where to find and use these critical functions in relation to your business.
Compliance and security
Security is pertinent when it comes to dealing with employees’ data and payroll information. Ensure that your payroll software is up-to-date and have a robust storage system in place. If possible, request for the salesperson to list out the key security protocols in place for you to have a better understanding of the payroll software.
Additionally, ensure that the payroll vendors are continuously improving and upgrading their compliance and security measures. Ask when was the last time they did a user testing on their payroll system – that should give you an idea of the compliance measures that the payroll vendor takes.
There are bound to be some questions left unanswered as you conduct your payroll software testing. Instead of wasting time scouring the payroll system trying to navigate your way around, simply write them down and send it back to the sales representative for them to answer. A proficient salesperson will respond to your questions timely so that you can get on with your payroll software testing.
Do keep in mind that engaging a payroll software vendor for your company is a huge investment. Make use of these tips to maximise your payroll software testing process. It will also aid you in making a more informed decision when it finally comes down to purchasing the payroll software for the company.
How do you find this guide for payroll software? Don’t leave yet, we still have more to share on how you can improve your payroll.
Start your payroll journey with ePayslip
It is rare in the online payroll software arena to have an Asia payroll software provider that can cover 8 countries payroll, excellent enough to make paying your employees an enjoyable experience.
Known for its exceptionally clean and simple interface, ePayslip is loaded with not only payroll features but also general human resource (HR) management features.
Setting up a payroll application is complicated, and 100 percent accuracy is needed. Your first run will not be correct if you have made even a small error. ePayslip walks you through this task, prompting you on what’s needed, and supporting you with detailed help articles and demos.
Fast Payroll Processing
Depending on the number of employees that you have and the amount of history data to be migrated, setup work can take anywhere from about 45 minutes to several hours, assuming you have all of the necessary information ready to go when you begin.
Running your payroll should only take a few minutes. ePayslip displays an employee list that includes the monthly salary or hourly/daily rate for each employee. You can enter any regular and overtime hours, and then any additional commission, bonus, reimbursement, and other earnings (such as unpaid leave and recurring allowances). You can also choose between direct deposit and cash/cheque payment here, and you can write a personal note on the electronic payslip if you wish.
Completing the post payroll activities
You have the option to save your data and continue later if you’re unsure of anything, or you can continue on to the next screen to approve your payroll. The final screen provides a summary of the payroll you have just completed. You can see the total for employee netpay, as well as the amount of employee and employer payroll taxes due from this run. You will be able to see clearly how much money is about to be deducted from your bank account for salary disbursement.
Once you’ve finished your payroll, you will want to be able to look over it and analyze the data, and that’s where reports come in. Reports are available in Excel with useful reports like year to date history report, reconciliation report, payroll detail by cost center etc.
ePayslip’s features and usability would make it a good choice for any businesses. It excels in every element of payroll, and takes a very friendly approach to a rather unfriendly process, living up to her tagline “Goodbye Payroll Stress”.
We hope that this guide for payroll software has been useful for you. Feel free to contact us to learn more about our payroll products.