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How to Choose a Payroll System for Your Small Business

By | Jaden Miller

Almost a third of small business owners say they spend more than six hours on payroll every month. That may not seem like much at first, but for busy entrepreneurs like you, it’s huge.

What else could you be doing within five or ten hours? You could be creating new content or closing deals with new brand partners.

Clearly, you have better things to be doing. Choosing the right payroll system can help you get your time back. There are plenty of systems out there though. If you’re wondering how to choose a payroll system, this guide is for you. Keep reading to find out more!

Check Out the Costs

The first thing you’ll want to think about when choosing a payroll system is how much it will cost you. You don’t have a huge budget to throw around, so getting something that’s cost-effective is important.

The trick here is to make sure you don’t look just at the bottom dollar. You want to think about value. A cheap solution can end up costing you a lot more if payroll is always late or there are mistakes you have to correct.

Instead, look for a payroll system that offers you more. You might decide to invest in easy-to-use software that’s backed up by an expert team. It might cost a little more, but it could be worth it because the app saves you time.

How to Choose a Payroll System for Ease of Use

Of course, you may not know how easy it is to use one app over another until you’ve already bought it. Make sure your payroll provider will let you take the app for a test-drive before you sign up for service.

You’ll want to make sure the app covers all the basics of payroll, including tax withholding and more. Also, think about the interface. Do you know where to click, or do you need to go hunting for buttons?

The easier the system is to use, the less time it will take you to get payroll done.

What Features Do You Need?

Most people have very simple payroll needs. As an entrepreneur, you might only want to produce pay stubs for yourself. That way, you’ll have a record of your earnings and tax withholding.

If you’re running a small business that has 10 or 20 employees, you’ll likely have different needs. The same is true if you have offices in two states . You’ll need to pick a payroll system that can handle more than one state.

Your needs will change again if you offer benefits or pension plans. Your needs may even change depending on the industry you’re involved in.

Think About the Future

It’s also a good idea to give some thought to the future when picking a payroll system. Sure, you need personal pay stubs for record-keeping right now. What happens if your business grows and you need to do payroll for two or three people?

Picking a solution that can grow with you is a good plan.

Tax Withholding and Reporting

You’ll also want to think about your payroll system’s withholding and reporting features.

Withholding and reporting are two of the biggest thorns for any entrepreneur . Even if you’re just doing payroll for yourself, you may still need to withhold and report to the IRS. If you don’t, the IRS might decide to penalize you

The best payroll system will keep you on the straight and narrow here. You’ll be able to file all your required paperwork, along with your reports. It will also help you calculate withholding and remit those amounts on time.

In short, the right payroll system makes it easy to deal with your tax obligations. That means fewer headaches when February rolls around. In turn, you can stay focused on growing your business and your career.

Integration With Other Software

If you’re working by yourself, you may not need your payroll software to integrate with other apps you’re using. For some, though, payroll needs to be connected to many other parts of the business.

Accounts payable teams may need access to this information. Freelancers may want to generate pay stubs from invoice information. That could mean hooking your payroll system up with your invoicing software.

Business owners with employees may want their payroll app to connect with benefits or scheduling software. That way, they can keep track of who worked which shifts, and how much they need to be paid during the next pay period.

The best small business payroll system will help you streamline data between apps. That way, you don’t need to spend hours entering it over and over again. Instead, you’ll have more time for the stuff that actually matters for your business.

Mobile Options for Entrepreneurs on the Go

You can do a lot on your phone these days, which means you can work from pretty much anywhere. Why doesn’t your payroll system work from anywhere?

That’s why you need to consider payroll systems that work on the go too, just like you do. That way, you can keep up with submitting expenses or logging hours  when you have a spare minute.

If you have employees, you want them to be able to access their payroll information on the go too. Mobile options for employee portals are a must for the modern business.

Think About Customer Service

Last but not least, you want to be sure your payroll system is backed up by a team of experts. Even if the system is simple to use, you may run into problems or have questions.

The best payroll system will have a customer service team that’s ready to answer every question that crops up. With their help, you’ll be running payroll in no time at all.

Faster Payroll Is a Click Away

Ready to ramp up your record-keeping and make payroll a snap? Now that you know how to choose a payroll system, you’re ready to slay payroll and get back to what matters for your business.

Looking for the easiest solution for creating pay stubs? Check out the pay stub generator  and discover just how fast and easy payroll can be.


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