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The Top 6 Features Every Payroll System Needs

No matter the size or scale of a payroll system, they should always have the same set of fundamental features. These ensure legal and efficient operation, both from a payroll and a wider business perspective.

So, here are the top 6 features every payroll system needs.

1. Tax management

This should be a no-brainer: every payroll system must track and generate payroll tax information. However, the extent to which it does this is slightly more flexible.

For example, a payroll system might just tell you how much tax you must submit, which you then do manually, or it might generate all necessary tax forms, including W-2s, W-3s, 1099s and more.

2. Financial reporting

Again, a fundamental process for payroll systems is reporting on finances. Every business benefits from such information, but it’s particularly important for small businesses and startups, where every cent counts.

Having clear, accessible payroll reports makes it much easier to track where your money is going without having to dig down into the finer details.

3. Compatibility with other systems

Ideally, payroll systems should integrate with existing business processes for maximum efficiency. While this might seem obvious, you’d be surprised at how many payroll platforms don’t integrate with other aspects of a business.

4. Employee self-service

To improve efficiency, payroll systems should allow employees access to their own information, such as timesheets and payslips. It means they can handle their payroll needs without delays to wider payroll processes.

5. Benefits and earnings management

A good payroll system should automatically manage aspects such as benefits, deductions, and earnings. Automating benefits means employers can add more without spending time approving or managing them. Similarly, automating earnings means you can offer PTO, tips, commission and more without bogging yourself down with paperwork.

6. Reasonable pricing to benefits ratio

Pricing is subjective based on what the potential buyer is willing to pay. However, it can be a big consideration when choosing the best payroll system for a business. Essentially, every business needs the same features from its payroll system, but a small business or startup can’t pay the same as a large business for these features.

A business needs to assess the payroll systems market to find the right benefits to price ratio. As a bare minimum, payroll software should provide everything mentioned above regardless of how much you pay.

However, a cheap platform isn’t often a good platform. So, look for one that provides everything you need and more, and perhaps be willing to spend a little bit extra to get it. After all, payroll is a fundamental aspect of running a business.

Conclusion

Hopefully, knowing these 6 features that every payroll system needs will help you narrow down the right choices for your business.

Paynub offers all this and plenty more. It’s a full-service payroll solution that will scale with your business needs, supporting you from startup to multi-state enterprise. 

Paynub exists on the Bindr.AI platform, a cloud-based business management solution that scales with you, protects your privacy, and integrates seamlessly for more efficient workflows.

If this sounds like what you need, get in touch with Bindr.AI and see how you can deploy the best payroll services for the small business.