Software as a Service (SaaS) is the term used for software that’s delivered and used totally online or in the cloud.
As more businesses turn to online solutions to manage their workflows, do accounting, etc., it should be no surprise to see that payroll processing is no exception. From tax-filing and employee self-service to data security and compliance management, SaaS payroll automates routine tasks and ensures accuracy, so business leaders can focus on what really matters, improving the bottom line.
If you’re in the market for payroll software online, you’ll need a sharp eye to find the perfect match for your organization. Keep in mind, not all payroll software is created equal. Whether you want to go with a bare-bones solution or you’re set on a more robust option, there are some functionality choices to consider.
The Elements of a Great SaaS Payroll Solution
Before you sign on the dotted line, make sure your payroll solution offers these features and functionalities.
- Time and Attendance – As you probably know, manual time cards are a thing of the past and a huge waste of time. Your payroll processes should integrate with an automated time and attendance solution. This integration eliminates duplicate data entry. Additionally, you can choose from multiple time entry options: badge terminals, biometric readers, online entry, a mobile app or phone-in.
- Employee and Manager Self-Service – This feature enables employees to easily access PTO balances, schedules, and pay stubs, 24/7. Additionally, they can change withholding statuses and access year-end tax documents. Managers have additional features that enable time approval whether they’re in the office or on a remote beach.
- Tax-Filing Services – Ensuring that your company is compliant when it comes to federal, state and local payroll tax can be a burdensome process, but it’s an integral part of processing payroll. Timely filing of your payroll taxes and accurate processing of the information contained in employee/contractor W4s, W2s and 1099s can reduce your business’s exposure to risk and can protect you from pricey penalties and fines.
- Reporting – Your payroll system should generate all the important reports whenever you need them. For example, if the chief financial officer asks for the company’s total labor costs by location, you shouldn’t have to hunt for that information, it should be right there at your fingertips. Or if department managers need to look at this week’s schedules, you should have the ability to easily pull overtime reports to see whose time needs to be adjusted.
- Compliance Management – Depending on size, most businesses have more than just tax compliance to take into consideration: Equal Employment Opportunity Commission (EEOC), Fair Labor Standards Act (FLSA), and Department of Labor, all have laws that, when not followed to the letter, can land your company in hot water. For example, you need to ensure that you’re in compliance with minimum wage laws, and make sure your employees and contractors are properly classified. If your organization is audited, it’s important that your payroll data is all in one place to help mitigate risk.
- Security – Companies retain a lot of confidential data about their employees that could result in damaging financial calamities such as identity theft when in the wrong hands. Your payroll database is viewed as a gold mine to hackers. Just think of all the information it contains: Social Security numbers, checking and savings account information, home addresses, and family member data. Make sure the SaaS payroll provider you select has put measures in place to protect your employees’ data such as multi-factor authentication (MFA), data encryption and provides access to a risk assessment team.
How Paycor HelpsAt Paycor, we’ve spent decades perfecting the payroll process. Our solution enables small and medium-size business to quickly and easily pay employees from wherever you are, all while ensuring tax compliance. Through 30 years of user feedback and product innovations, we’ve made payroll simple, so you can get in, make edits, run payroll and get out. Discover why nearly 30,000 organization are partnered with Paycor by talking with a representative today.