Payroll software is vital for any small business that wishes to expand and grow. However, understanding the payroll software cost can sometimes lead to confusion. So keep reading to find out exactly how much your payroll software should cost you.
There are several different factors that affect the pricing of payroll software. Different providers offer different pricing models, but many share some features in common. For example, some may charge monthly or annually based on the number of employees, whilst others charge every time you process the payroll. In this article, we will aim to discover how much your payroll software should cost by comparing the different costs that are incurred with payroll software.
Remember that when you are given a quote for payroll software, this quote is likely to include the licensing fee to meet your needs but may not factor in all the other costs that are associated with payroll software. Some additional features may cost you extra. We discuss these further below.
What Should A Payroll Software Offer?
Before you purchase payroll software, you must choose payroll software that covers everything your small business needs to process payroll efficiently and securely. To ensure that you invest in the best payroll software for your business that meet your needs, we have outlined essential features that your selected payroll software should offer.
In-House Payroll Processing
As a small business owner, you understand the significance of managing payroll software costs effectively. In-house payroll software presents a compelling solution that allows you to keep your expenses in check. By implementing an in-house payroll system, you gain the advantage of cost reduction by eliminating the need for outsourcing.
Empowering Your Team to Manage Payroll Internally
One of the primary benefits of in-house payroll software is the ability to train and empower various members of your staff to handle payroll tasks. By providing comprehensive training on the software, you can equip your team with the necessary skills to efficiently manage payroll processes internally. This eliminates the need to rely on external payroll service providers, which often come with hefty fees and ongoing costs.
High-quality payroll software prioritizes data confidentiality and data security through a secure database. With robust encryption and industry-standard protocols, it protects sensitive information such as employee details, ensuring compliance with regulations. Confidentiality is vital when you are handling important data such as employees’ names, addresses, social security numbers, etc. Streamlining operations and reducing risks, this feature provides peace of mind for your business.
Managing Multiple Companies & Employees:
As your small business expands and evolves, it becomes crucial to have payroll software that can accommodate your growing needs. An essential feature to look for is the ability to add multiple companies and employees, ensuring seamless management without incurring additional costs. Your payroll software should be scalable, allowing you to effortlessly handle multiple entities and a growing workforce.
By having this flexibility, you can efficiently navigate the complexities of managing payroll for various branches, divisions, or subsidiaries within your organization. Choose a payroll solution that grows alongside your business, empowering you to streamline operations and effectively support your expanding ventures.
Pay Employees with Paper Checks, Direct Deposit, or Pay Cards:
Every business is different when it comes to paying employees and you must have access to a variety of options to ensure there is an option to suit everyone. You should also be aware that certain states have laws regarding paperless payroll and how you pay your employees. So, it’s important to have access to multiple payment options in the software to comply with these rules and regulations.
Integrations with Other Accounting, Time Management, and Hr Software:
The seamless integration of payroll software with various business platforms, including accounting, HR, and time management systems, empowers you with unparalleled control, flexibility, and ultimately, improved outcomes. By effortlessly connecting your payroll software to these essential functions, you gain a comprehensive overview of your business operations and can effectively manage crucial processes.
Other Important Payroll Software Costs:
– Accrual tracking and management for paid time off
– Payroll reports
– Automatic payroll calculations for overtime, pay rate, accruals, taxes, and deductions.
– Employee Self-Service Portal
– Document Management
– Time Clock Integration
Generally, the more features a platform provides, the higher the cost of the payroll software. Therefore, it’s best to select features that align with your small business needs, and the aforementioned features serve as an ideal starting point. Make sure that the chosen payroll software includes these elements within the final price.
A Smooth Setup
Most payroll software systems will have installation costs. Your chosen software must include any costs needed to both install and configure the program for use.
The payroll software cost should include any set-up and installation fees within the final price. When it comes to desktop payroll software, it’s installed directly on your computer. Some desktop payroll software solutions require your computer to have certain software or hardware requirements, so in some circumstances, you may need to upgrade your current operating system, which could incur costs. However, cloud payroll solutions don’t need any installation or upgrades, and you have the freedom to access your payroll from anywhere and anytime.
It’s also important that your payroll software fee includes different setup requirements, such as:
– Adding companies and employees
– Setting up Federal, state, and local taxes
– Setting up additional incomes, deductions, hourly rates, etc.
– Setting up employer payees
– Setting up employees
– Setting up ledger accounts
How Much Should Training Cost?
If you have never used payroll software before, and you have no idea how to use it, then you and your staff will require training. If you have an accountant in your company, then it’s a cakewalk, but if you plan to do it yourself, then you need to learn the software. Most payroll solutions will offer you some basic training, but they will charge you separately to cover in-depth and comprehensive training. The time spent on initial training and the annual training of employees should be considered in your cost analysis of any payroll software application. That’s why it’s always best to choose a payroll software platform that’s easy to use and doesn’t require any formal training.
Staying in the Loop
You must be always IRS-compliant. Otherwise, you could fall into legal issues about taxes, etc. This means you need regular update releases that ensure your payroll software stays compliant. This should be issued without additional costs to your small business.
Should I Be Paying For Payroll Software Support?
The last payroll software cost we will consider in this article is the cost of support. It’s natural to run into problems when using payroll software, especially as your business grows and you test out new features. It’s therefore important that it won’t cost you to receive that assistance. The payroll software solution you choose must include on-hand technical support at no additional cost. It’s also helpful if they are US based and available on various platforms, such as email, phone & live chat. It’s even better if your chosen payroll software solution offers helpful manuals, online tutorials, or FAQ features that may help you solve any issues you are experiencing yourself.
When it comes to choosing a cost-effective payroll software system, CheckMark has you covered. We offer an all-inclusive one-time annual fee.
Unlike other payroll software platforms, we don’t charge you separately for an initial setup, adding additional employees and companies, or using additional features such as direct deposit, MICR encoded check printing, or e-Filing W2s & W3s, etc. CheckMark Desktop Payroll Software is a cost-effective option when compared to cloud options. This is because we neither charge you monthly fees nor surprise you with hidden costs and we either don’t charge you for additional features as your business grows. It’s all-inclusive. This means you’re receiving a payroll solution that not only offers great value but is also tailored perfectly for your small businesses. However, CheckMark Online Payroll comes with monthly pricing. In addition to all the functionalities offered in the desktop version, CheckMark Online Payroll provides ACH Direct Deposit, Employee Self-Service Portal, Document Management, automatic backups, and much more. You can assess our cloud application from anywhere and at any time.