Payroll Software – Pros and Cons
Posted on: 28 September 2021 by Reshmika Tandon
A lot of companies can get by with payroll software packages that automate aspects of payroll operations. These types of software can make it much easier and more efficient
A lot of companies can get by with payroll software packages that automate aspects of payroll operations. These types of software can make it much easier and more efficient to:
- Set and implement payment methods for employees
- Calculate wages
- Store pay and scheduling data
- Retrieve data for tax filing purposes
- Store data about benefits and retirement
Payroll software packages also come with their own benefits and disadvantages. While there are some processes that these types of software handle well, there are also some drawbacks to using a payroll software package to handle payroll operations.
Easier to Make Changes
Managers and leadership teams have upfront access to the payroll operations through the platform and can tailor the software accordingly. If anything needs to be adjusted, authorized users can immediately open up the payroll software and make the necessary changes with no barriers preventing access. In contrast, businesses that employ a payroll contractor need to contact said company to change any of their processes. This can have a much longer turnaround time for crucial modifications, in comparison to the quick-fix benefit of an internal payroll system.
Businesses don’t have to worry about third parties poking around their finances or getting data such as employee Social Security numbers or identifiers. Keeping payroll processing under the umbrella of in-house systems, as opposed to outsourcing the function to a payroll service, is generally more secure. With payroll software, businesses can manage access rights to ensure only the most critical employees are able to use the system and view the information stored within.
Many of these software packages offer a mobile-first design and online delivery architecture. With these capabilities, internal people who need access to payroll data can get it from wherever they happen to be. As mentioned, using a payroll service limits a business’s ability to perform their own payroll functions or make changes, so mobile capabilities are practically nonexistent if your company isn’t using payroll software.
Long-Term Vendor Relationships
Software vendors can help with automatic updates or provide other types of services, such as adding different kinds of service modules. Having access to vendor assistance through payroll software provides some of the benefits of a payroll service, such as expert know-how and troubleshooting.