Sometimes we do something the same way for so long, that we don’t realize there is a much more efficient way to accomplish it. Even when we know there is something better, it’s hard to make the switch. Change can be hard. But if there is clearly a faster and more efficient way of getting your payroll done, you could save yourself wasted time and agony. Here are some of the top time wasters when it comes to payroll processing.

Double entry

If your employees are filling out a time sheet, and then you are taking that data and entering it by hand into a payroll system, you are double entering data. This not only wastes time, but leaves an additional margin for error. You can streamline that process by implementing an electronic time clock, where you pull in the hours electronically into your payroll system. Yes, there is an added expense for the time clock, but you will quickly recoup that expense with the time saved! You will wonder how you went so long without it.

Tracking employee leave time on a spreadsheet

A surprising number of people could use their payroll software to track employee leave time, but instead use a spreadsheet and manage the process manually. Maybe the thinking is that their leave calculations are too complex for software to compute or that the setup will take too long. Either way, it’s worth your time checking into whether your payroll software can handle your employee leave calculations. A good payroll system will be able to handle a variety of calculation methods and make the job of calculating leave a whole lot easier for you, and also maintain accuracy.

Troubleshooting problems on your own.

Yep, we are a payroll software company. So you might be thinking this is a plug for us, but it’s not. Far too many people think they can personally handle questions, problems and issues they are having with their payroll, when a payroll support team could easily help them resolve questions and issues much faster. So, no matter whose payroll software or service you are using, opt in for a support plan. Calling for help and getting your issue resolved right away will bring peace of mind, and may also stop the issue from snowballing and becoming worse!

Once you stop the payroll time wasters, payroll processing will go much more smoothly, and you can expect accuracy to be improved as well.

With the constant growth in technology, many business processes are becoming more streamlined. Payroll processing that used to be done over several days with paper and pencil can now be done in minutes with the right software. Since the inception of companies using payroll software to process payroll and write checks, even more tools have become available to make the process easier, more accurate, and more efficient. Here is a list of today’s must-have payroll software tools for a business to improve payroll processes.

1. Direct Deposit: This tool allows a business to transmit pay data electronically directly into employees’ bank accounts without printing pay checks. Information is usually transmitted from the payroll software to the bank accounts securely in a bank-friendly format. By using direct deposit, companies can save money on pay check processing time and supplies. Many employees also prefer direct deposit because it saves them trips to the bank and also eliminates the problem of lost pay checks.
2. Electronic Tax Filing: Whereas mandatory end of year tax filing has traditionally been done on paper, today’s payroll software programs have built-in tools to make electronic tax filing (“e-Filing”) simple and accurate. By filing taxes electronically, a business can eliminate the cost of forms. Tools are now even available to allow employees access to W-2 forms online instead of having to wait for the paper version to arrive by mail. Filing electronically can also reduce the stress of tight, end of year deadlines because transmission is instant.
3. Time Clock: If employees are required to fill in time sheets, re-entry into a payroll software system leaves room for entry errors and also duplicates efforts. By implementing an electronic time clock, a business can remove the margin for error, keeping employee pay checks accurate. Most time clocks are simple to use, and pull information in a standard file format so that time clocks will operate with most payroll systems. Most payroll software systems allow for mapping of information to be pulled in from the time clock to the software.
4. Advanced Earnings Matrix: With an advanced earnings matrix (which may go by various names depending on software developer), a company sets up each employee with a separate rate for all ways they can be paid. For example, if a company tracks pay by department and by profit center, each employee record is set up with a pay rate for every department and profit center combination in which they may work and be paid for. All earnings and deductions are calculated accordingly when time is entered. An advanced earning matrix saves time by drastically cutting down on the number of pay codes that are necessary to track employee pay. Instead of using a long list of codes, time is simply entered by choosing the factors they set up.
5. Custom Reporting: Do not underestimate the fact that your company is unique. Some payroll systems now pay tribute to this fact by offering simple tools which allow the user to customize reports, and to name and save them for later use. By using custom reporting, a business can easily see pay data in a timely manner, and filter out only the information that is important to their own organization.

Managing payroll for multiple companies is a big task. And the more locations you manage the bigger task it becomes. Whether it’s paying employees, managing employee information, running reports by location, or the multitude of other payroll functions you must handle for multiple locations, you need a way to stay organized, accurate, and timely. Here are some ways your payroll software can help.

Unlimited Companies

If you manage the payroll for multiple companies, it’s crucial for you to have the ability to keep track of them separately. Many payroll systems allow for just one company, some have a limit for the number you can manage within the system and others allow for unlimited companies. Due to the variations in payroll systems, be sure you choose a system that can grow with your company and handle all of the different companies for which it manages payroll.

Track Data by Location, Department, Project, etc.

Tracking the payroll data for different companies can be a helpful tool. For instance, maybe you want to compare the labor costs by department or by location. Setting up and tracking that information in your payroll system makes it easy to pull reports at any time to do the comparisons you require.

Direct Deposit with Publish Pay Advice

Managing the payroll for multiple companies means you may not be near enough to some of the companies to deliver physical pay checks to employees. This issue can be solved by paying employees via direct deposit, and delivering their pay advice or ‘stub’ electronically via e-mail and that is accessed securely on the internet. This eliminates the need to print anything at all, which also saves money on paper, ink, time stuffing envelopes, and more.

Multiple State Tax Filing

Having multiple companies typically involves employees in multiple states, and therefore you must be certain your payroll software can handle that, since not all systems do. The best way to be sure your system processes multiple state tax filing, is to implement a system that can handle the tax forms for all 50 states! Even if you don’t require it now, chances are you will down the line.

Import Time Electronically

To streamline the entry of pay for multiple companies, importing time directly from an electronic source can be helpful. A digital time clock, for example, allows you to import the time and populate the hours directly into your payroll software program, reducing errors by eliminating the double entry of information. Other ways to capture time include hand-held time capture devices and online time entry.

Customized Reports

No two businesses are alike, and that’s why each business has its own way of running reports. With different companies, the ability to run reports the way each company desires can be extremely helpful. Customize payroll reports to the exact specifications each company chooses, and then save and name them for easy access whenever you want to run them.

Check Designer

Each company’s payroll likely requires different check designs or styles. One way to handle this is to use your payroll system’s check designer to create and save appropriate check designs for each company. Many designers will allow you to add, delete or edit fields of information and even add a logo. You can go step further and print checks on blank check stock using MICR encoding. The MICR function also allows you to print a custom signature from a file on pay checks, especially helpful in the case where the person signing is not always nearby or available to sign pay checks.

Many businesses start out by paying employees by hand. As a business grows, so does the number of employees, and along with those employees comes a growing variety of payroll needs. Managing earnings like paid time off, wage garnishment, overtime calculations, and a host of other options can become complex and nearly impossible to manage on paper. Enter: payroll software. Are you ready to say good bye to the long green sheets and manually processing payroll, for a long term solution that can streamline your payroll processes and save you time and lots of headaches? This article may just help you make your decision.

Tracking pay and deductions: Keeping track of pay and deduction types can become difficult as a business grows. Each employee has their own set of specific needs: hourly or salaried, regular or overtime hours, 401K participation or not, and these are just for starters! If you are tracking this information by hand, it becomes hard to know if what you have written down is the most current. A software system keeps track of this information with codes; each employee is linked to a code that fits how they are paid. This way you can be sure that the employee gets that pay or deduction type, and when payday comes, pay entry is a snap because calculations are done automatically behind the scenes, providing a fast and accurate pay process.

Tax payments: If you are worried about your payroll tax payments being timely and accurate, this may be a sign that it’s time to automate the process. Calculating these payments is a very complex and time consuming process, especially as your number of employees grows. Most payroll software programs will have the tax calculations you need already built into the system, so rather than calculating each employee’s tax by hand, you simply run a report for the tax form you need, and the information will be generated directly from the pay that you have entered into the system. Some programs even offer complete online filing “eFiling” capabilities, so that nothing needs to be printed, and the process is completed electronically, saving you money on costly forms, envelopes, stamps, and most importantly, your valuable time.

Support: Processing payroll by hand means you are going it alone, and have nobody to turn to when you have questions about payroll processing. This is a major advantage offered by most payroll software companies! Support services are offered to customers, so a source is available when questions or problems arise. This is especially helpful when there is a time crunch for completing your payroll!

Switching from hand-processing to a software program sounds daunting, but the majority of people are pleasantly surprised to learn how much time can be saved and how accuracy is increased after implementing a good payroll software program. To make the transition easier, create a plan for your switch, including a timeline and all the necessary steps. And when it comes time to make the switch, be sure to use all the help provided by your new software provider. You will be glad you did!

Remember the days of using a calculator and a typewriter to process payroll? Thankfully, those days are gone, and there are much simpler tools to make the process more efficient. Today, there are tools available to help ensure timely tax payments, accurate and complete payrolls, and to make sure employees are paid on time. These days, most businesses use one of two methods to process payroll: in-house payroll software, or a payroll service. As a business, you must choose the method of payroll processing that works best for you. Start out by asking yourself these simple questions.

What staff is available to manage the process?

No matter which processing method you use, you will need staff to manage the associated tasks. Many in the business world tend to believe that a payroll service takes less staff time, since it handles the tax payments and processing. While this may be true, be sure to account for all of the time your staff must spend collecting and entering time data for employees (if applicable), updating employee earning and deduction changes, running payroll reports, and generally making sure that data is accurate and timely. When using a payroll software program, it is a good idea to have at least one employee who is familiar with your payroll processes, and your payroll software. He/she should be able to set up employee information, enter time in the appropriate manner, process payroll, run reports, maintain tax filing schedules and be able to file them using your system.

Who manages what?

It is important to consider your current staff and their expertise, when you are deciding on payroll processing. For instance, if you don’t have a skilled HR person, you may lean toward a payroll service, since some of them offer HR services. If you have a person who is skilled in using in-house payroll software already, you might find it easier to stay with that. Consider who you have on staff and their expertise, and then whatever system you choose will come along with a much smoother transition.

Where is my data safest?

There is a major different in the location of your payroll data when comparing a payroll service to in-house software. With a service, your data is typically stored in a remote location and accessed via the internet. Of course, most services use strong encryption to provide security for your data. For payroll software, your data is stored on your own server, so the information is not available via the internet. However, you still need to be sure there is a good internal security system, since payroll data is sensitive, and you don’t want unauthorized employee’s to log in and view or edit sensitive data.

No matter whether you use payroll software or a service, payroll solutions are definitely a key way of ensuring your payroll is easy to manage, accurate, and that taxes are paid on time! And of course most importantly, that your employees get their checks. There are a few additional steps you can take to make your employees happy. Just by adding features that may already be included within your payroll solution, you may increase the happiness level of your employees!

Add direct deposit

You might just be surprised how much happier employees would be by receiving their pay directly deposited into their bank account, rather than receiving a paper check. Direct deposit allows employees to eliminate the hassle of going to the bank, and also reduces the chances of lost checks. Some payroll solutions even allow for the depositing of funds to unlimited bank accounts, allowing for Christmas savings accounts, additional checking accounts, child savings accounts, and more!

Offer pay card option

Some employees may not have bank accounts, and in those cases it can be difficult or costly for them to find a way to cash their paychecks. Pay cards can be a great way to solve this problem! Deliver employee pay on reloadable debit cards instead of paper checks and you have just made some of your employees very happy by providing them an easy way to access the money they have earned.

Translate pay stubs into employee language

Do you have employees who are not native English speakers? Depending on their language skills, these employees may be better able to understand the important details of their pay and benefits if you have them printed on their pay stub in their native language. Payroll solutions that offer this feature will typically allow you to enter the translation one time, and assign it to the applicable employee(s), and the pay stub will be printed that way automatically from then on.

Add important information to pay stubs benefit summary etc.

Are employees constantly asking how much vacation time they have left? How much they’ve contributed to their 401K? Details like this, and much more can be included on a pay stub. Surely your company has its own unique set of details which you may want to include on the pay stub, so add whatever is most important to your business and your employees.

Add online pay stub access.

Many payroll solutions are now offering the ability for employees and previous employees to access their pay stubs online! No more searching around for slips of paper to access the information they need. Provide employees or previous employees with a password, and they will be able to look up their pay stubs and even W-2 forms online, making it easy for both them and you.

Don’t assume that what you are doing is the best or only solution available! You could make your own job easier as well as bump up employee happiness by adding features you may already have in your payroll system.

Many of you processing payroll in a wide variety of states face a similar challenge: local payroll tax withholding amounts by work location and by residence for your employees. Here’s more about how it works, and also suggestions for handling it within your payroll software.

Employees who work at several different locations during the same pay period may require a different local tax withholding amount, determined by the city in which the work is performed. In addition, there may also be a local withholding tax for the city of their residence. Without a way to track both of these taxes, you can easily make the wrong calculations or spend hours of time manually trying to figure it out. Here are states with some cities that assess local employment taxes.

Keeping track of these withholding amounts is complex. But there is a way to handle this situation within your payroll software. You can create ‘Local Tax Entities’ within your payroll software, relate the tax entities to the appropriate employees, and then during time/pay entry you can select the appropriate local tax entity assigned to the time/pay entry. This is something not all payroll software programs will allow you to do. It is worth asking your software provider if there is a way to handle it in the program you are using. If not, give us a call. CenterPoint Payroll Software can easily handle payroll local tax withholding, and much more. (PS: if you are a Red Wing Software customer with a current Customer Care Plan, give us a call and we will help you get this set up!)

Since we are a software company, we work with customers nearly every day who are moving to a new system, and are often bringing some information over from their old system to the new one. (This is referred to as ‘migrating’.) Of course, we all have our own opinion when it comes to migrating. Your company may have migrated with great success and had no issues, and another may have run into some problems along the way that left a bad taste in their mouth. There are so many variables involved in migrating your software, all of which can affect the success of your migration. Here are some statistics from a survey taken by real customers of Red Wing Software and customers of other software products. Understanding the experiences of others who have been there can help you make your own migration successful.

The most important factor for a smooth migration is the support team. This answer got 59% of the responses - more than double that of any other choice selection! There are many things that can help with your software migration: training, help documents, videos, and more. But the support team is probably your most helpful resource during a migration. Anytime you have an issue or question, or need to know how to do something, you can just pick up the phone and give them a call. That’s why using support should be a big part of your plan to get the software up and running. You may feel like you are calling too often or bothering the support team, but that is their job, and they deal with the exact things you are dealing with every single day. Every call you make is an investment in your future with your new software.

36% of respondents said training was the number one thing they could have done to improve their migration experience. If you are thinking of getting training prior to migrating, you might want to consider this number! Once you start the wheels moving in the process of your migration, it’s hard to stop it and get training at that point. So think ahead when it comes to training. If you or your staff don’t know anything about the software and need to familiarize yourselves, plan to either attend training, or at least do some online tutorials, well before the actual migration process begins. Then you can get all of your questions answered and understand processes, which will greatly reduce your stress level once you start using the software.

Only 9% of people said they had a plan to help them stay organized. You might think you are far too busy with everything else involved in your software migration to come up with a migration plan. But just think about it, how lost would you be in your daily life without a calendar to keep track of what there is to do. Even if you just jot down some notes on paper, it’s a good idea to put a plan together for your migration. Key components to include are: who will do what, how long each step will take, and what will happen if one of the steps falls through or is completed late. When you are prepared for whatever happens, the migration process will go much more smoothly.

You know you have to make the switch from your old program to something newer! In the end, your company will reap the benefits of newer technology. Why not make your migration a successful one by heeding the comments of those who have been there and done that?

Implementing a new payroll software system can be a daunting task. There are some standard steps to anticipate when setting up the software system, regardless of which payroll system you choose to use. One crucial step during the setup process is deciding whether to set up multiple companies/employers in separate databases or to combine them. This decision can greatly affect how you view and analyze your payroll data, so it is important to take some time to consider which option is right for you and your business. Learn more about which database setup may be right for your company.

When setting up your new software system, be sure to consider what a database means before setting it up in your system. A company/employer is typically defined as a tax entity with financial activity. This allows multiple companies/employers to share a database, if they are part of the same operation. Companies/employers can then share accounts and analyze the combined data. At the same time, each company/employer maintains separate financial records. Be sure you understand how your software handles this before starting to set up your new system.

There may be circumstances that are better suited to setting up separate databases. If you have more than one company and they do not share the same type of activities, share the same type of accounts, or you do not wish to combine data from all companies in an analysis, you may want to consider setting up separate databases, rather than combining them into your payroll system.

When your database is set up correctly, you will be able to quickly pull and analyze your payroll data in a way that is most meaningful to your business.

If you are searching for new payroll software, you are either just starting up, or you have outgrown your previous system. Either way, there are certain problems you must solve with your payroll software! Before you begin conducting your search and calling vendors, take the time to consider these four important points. They will leave you better prepared for your search.

Issues.

Maybe you need to keep track of employee garnishments in a certain way, or you want to use direct deposit rather than issuing paper checks. No matter what your needs, be sure to write them all down on paper so you don’t forget them during your search! Use this check list to organize your thoughts.

Scale.

Several things can affect the scale of payroll software that will fit for you. If your budget is $2,000, then that’s where your search efforts should be focused. Having said that, you might find that your needs exceed your budget. Things that can affect the cost of your payroll software are the number of users, employees, and companies managed. Some of the features that typically affect cost are: direct deposit, tax filing method, multiple state tax filing, custom payroll setup, and more. Therefore start with a budget in mind, but understand that your needs may require you to adjust the budget accordingly.

Hardware.

Do you have the computers and/or networking capabilities necessary to run your payroll in-house? This is the major question you need to answer to help you decide whether to use in-house payroll software or software as a service. Some people like the control of having the whole system in-house, while others do not want the cost or responsibility of purchasing and maintaining hardware. If you are one who doesn’t want to deal with the hardware, then software as a service is probably the right direction to go. On the other hand, if you have the staff and hardware available, and you desire more control, then go down the road toward the payroll software option. Both in-house payroll and software as a service are extremely popular; it just depends on the needs of your business.

Future needs.

The reason many people switch software is that their payroll needs outgrow their software. They need to manage payroll for more employees, or need more flexible pay entry, etc. The list of reasons all depends on that company’s needs. You can prolong the life of your payroll software by projecting your needs for the next seven years or so. Ask yourself, will you expand to paying employees in other states? Will you add another business location? Will you want to offer employees debit cards or direct deposit for their pay? These are all things that should be considered, and then you should choose the payroll software accordingly.

Being prepared for your payroll software search can help ensure you get a payroll system that fits well and can grow with your company for years to come.