Month: April 2021

HR Software: Features and How to Choose Best One?

If the “HR solution” of your small business consists of some spreadsheet and some paperwork kept in a filing cabinet, you might be missing out on a trick.

Although the informal approach can work in the very early days, it quickly becomes a nightmare as your business grows, eating up valuable time with low-cost administrative tasks.

In fact, a 2013 OfficeMax survey found that small business owners overall were wasting more than four billion hours on administration each year, and 41% said it eliminated their passion and energy for operating their companies.

One way out of this chaos is to invest in a good HR software solution, which can help you stay organized and handle common HR tasks such as record keeping, payroll and employee performance management. Prices start at just a few dollars a month and are usually increasing based on the number of employees you have, this is an investment that can pay off quickly, even if it costs you a few hours of your valuable time.

In this article, we’ll cover the key features of HR software for small businesses and how to choose the right software for you. Their Highlights and Benefits Finally, you will have a clear idea of ​​the options available to you and how to select a package that will help you manage HR more efficiently.

Key features to look for in HR software for small businesses

In this section, we will look at some of the options available to you when looking for HR software for small business.

Types of Business HR Software

There are two main types of business HRIS software packages: core HR and strategic HR.

1. Core HR deals with traditional, “administrative” HR functions such as benefits administration, attendance tracking, processing pay, and more.

2. Strategic HR packages, on the other hand, help you with more visible strategic tasks such as recruiting and retaining better employees and tracking their long-term growth.

Not all software suites focus on one area or another — often there are multiple crossovers, and some packages cover everything, while others are more space. But this is a useful distinction to keep in mind as you decide what you want.

Key Features

Here are some important features that business HR software can offer:

1. Employee Record-Keeping: Keep copies of your employees’ important records, as explained in our tutorial on key small business HR requirements.

2. Self-service option: Allow employees to log on and do things like update their details, take time off, etc.

3. Benefits Administration: Enroll for employee benefits and help manage your options from within the software.

4. Conscription: Use software to keep track of job applicants and manage the recruitment process.

5. Enlightenment: Help new employees get up to speed quickly as needed by training and resources.

6. Succession planning: Plan your future staffing needs and reduce your dependence on key staff members by planning succession for key roles.

7. Training: Some packages let you plan the training and development needs of your employees, and sometimes you can also integrate training into your app.

8. Performance reviews: Keep track of employees’ performance year by year, set new goals and objectives, and gain access to their entire development history within the software.

9. Reporting: Analyze your employee data and create custom reports on things like attendance, turnover, employee satisfaction, and more.

10.Time and attendance: Manage staff leave requests with a schedule to ensure that you have adequate cover. Some software changes also provide more detailed time tracking for workers.

11. Communications: Let your employees pass on important company news, and allow them to communicate with each other through blogs, forums, message boards, etc.

12. Mobile access: Allow employees to access the system through a smartphone app so that they can check and upload notifications on the move.

How to Choose the Right Small Business HR Software

As you have seen, you have quite a wide range of facilities available. But more comprehensive solutions, of course, often come with a higher price tag, so you’ll have to go through the list and decide what you really want out of them.

If you are spending hours every month printing out resumes from prospective employees every month and then trying to find and remember which ones you have contacted and which you do not have, the recruitment module might give you Will save a lot of time and help you. Software to pay for itself.

Other characteristics of this HRMS, such as communication devices, may not be such a direct payment, but they may still be valuable. For more information on the importance of good communication, see the following tutorial:

Also think about how you work and how your employees work, and decide on the facilities you need and the ones you can do without. For example, some packages offer mobile apps that employees can use on their smartphones. If you have a very mobile workforce, this can be a useful feature, but if your team is office based, this may not be necessary.

Finally, the best way to make a final decision is to limit your choices to two or three, and take them for a test drive. Most providers offer free trial periods, and also for those who do not have a one-month cost prohibitive.

Therefore, it is appropriate to establish a test account on two or three different systems. Drew around in dashboards and settings, deciding which features you prefer, which interface is easier to use, and so on. You will usually feel for one that you like more than the others, and then you can also cancel the rants and focus solely on gaining momentum with your chosen provider.

What is Payroll software and Its Pros and cons

Payroll is all compensation that a business must pay to its employees for a set period of time or on a specified date. It is usually managed by the accounting or human resources department of a business; Small-business payroll can be directly controlled by the owner or an affiliate.

Payroll can also refer to the list of employees of a business and the amount of compensation due to each of them. This is a major expense for most businesses and is almost always deductible, which means that the company’s taxable income can be deducted from the gross income that reduces it. Payroll can vary from one pay period to another due to overtime, sick pay, and other variables.

Understanding Payroll

Payroll is the process of paying employees of a company, which may include tracking of hours worked, calculating an employee’s salary, and disbursing payments through direct checks directly to their account. However, companies must do accounting work to record payroll, withdrawal of taxes, bonuses, overtime pay, sick time, and vacation pay. Companies also have to put aside and the government will have to record any amount paid for Medicare, Social Security, and unemployment taxes.

Payroll is all compensation that a business must pay to its employees for a set period of time or on a specified date.

The payroll process may include tracking hours worked for employees, calculating salaries, and disbursing payments via direct deposit or check.

However, companies should set aside separate amounts of accounting for Medicare, Social Security, and unemployment taxes, as well as record-keeping.

The employer monitors the number of hours worked by each employee and relays this information to the payroll service. When the time of releasing payment of employee, the payroll software calculates the amount of the employee based on total work hours of the month.  This software also works as an attendance management system. The service deducts taxes and other withholdings from earnings and then pays employees.

Features of Payroll Software

This can save time for both the accounting department and the HR team as it can handle all payroll details automatically. This avoids the risk of having the necessary data in the wrong file and miss calls. For example, even a small mistake of placing a “0” or decimal can cause huge damage to the organization. A payroll system can save time and ensure accuracy. It also protects the organization from penalties as it complies with all regulatory guidelines. We have mentioned most of the features of Payroll software below:

Reporting

You can handle the following reporting tasks and customize the report criteria with software –

  • Audit report
  • Timesheet report
  • Unemployment wages
  • The report related to liability and salary audit
  • Output formats and reports such as XML, email, printed reports and text files
  • Form 941, W-3, 1096, and W-2

The software can also allocate resources to limited people because different teams handle different reports. Therefore, this software is cable for making the most of reporting. Ensure that important reporting features are provided before purchasing the software. Now you can ditch files, pens, emails, and spreadsheets as payroll software can do all this.

Payslips and Recording Files

The software can generate reports such as salary benefits, vacation summaries and salary statements. You can print peplat from its digital platform. It also has options to print and download forms such as Form 16, Form 12C and Form 12BA. This software handles all employees’ documents and records. Features like employee profile, experience sheet, organizational chart, offer letter, and business tax and security have been added to it.

Management Earnings

Payroll software manages employee earnings with the following elements –

  • Allocation rule
  • Calculation rule
  • Basic Pay and Premium Pay
  • Tax earning
  • FLSA overtime pay
  • Earning department on work performance or bonus tips
  • Earning code

Advantages and disadvantages of using professional payroll services

Professional payroll services provide many benefits and some disadvantages. A major benefit of payroll services is the ability to produce a wide variety of reports that simplify accounting procedures and help companies ensure that they are in compliance with legal and tax filing requirements. The payroll service can also keep a record of how much leisure or personal time employees have used.

On the downside, when companies outsource their payroll systems, they must rely on individuals from outside the business for accurate accounting. In the event of an error, the company’s on-site personnel must deal with troubled employees. Companies may also face tax penalties for payroll service errors. In addition, payroll services are more expensive than running payroll in the home. Services may charge a fixed monthly fee or offer different payment structures for different levels of service. For the small companies, the payroll service is not good as there are few employees there no meaning of using payroll software.

Payroll software program

In lieu of using specialized payroll services, some companies choose to rely on payroll software programs. Once the company purchases the software, there is no additional monthly fee. Software programs typically include printable tax forms and withholding tables. In addition to financial savings, internal payroll systems help companies keep confidential financial information private. However, software programs can be time-consuming, which can pose a problem for companies with small employees.