There are many payroll software providers in the country, and most of them have good rankings and ratings. Still, not all of these are suitable for every company. When selecting among the options available, you will have to pick the one that meets your organization’s unique needs. While large businesses will want numerous features and HR-related add-ons, smaller ones may look for a simple payroll software solution. Here is a brief guide to help you make the right decision.

Which payroll software is right for you?
To know the right software, you will need to gather specific information about your business and its working, including:

• The size of the business
• The number of employees
• The categories of employees – hourly wage earners, salaried staff, or workers who receive tips and bonuses for performance
• How often are the employees paid – daily, weekly, or monthly?

The answers to these vital and practical questions will help you understand how your payroll calendar works, and you can narrow down your search for suitable payroll software.

Core features of any payroll software
Irrespective of which option you select, every software should have certain basic features, such as the ones discussed below:

Automatic payroll and payslip distribution
Payroll software automates the cumbersome process of collecting attendance records from various departments and people. This saves time and increases accuracy. The one you select should be good and accurate in factoring in the earnings, revisions in salaries, bonuses, one-time deductions, leave, and attendance so that you can process the data with a single click of a button. Automatically and securely mailing payslips and tax documents to employees is an added advantage.

Statutory compliance
Legal compliances are of paramount importance, no matter the size of your organization. Non-adherence to statutory laws can put your business on the wrong legal footing and cost you money in fines, legal fees, and penalties. So choose payroll software that automatically and accurately computes the contributions to provident fund, insurance, labor welfare fund, professional taxes, and income taxes. The software should be compatible with factoring in the differences in regulations in different states and automatically adapt to changes in tax laws.

Online salary payments
Opt for payroll software that has tie-ups with reputable banks that offer direct deposit services. Such tie-ups will allow you to send employee salaries directly to their bank account. Another alternative is to feed the employees’ bank account details into the software to directly credit the respective accounts with the money.

Payroll reports and filing of returns
Reports from the software are essential for budget analysis, governance, and tax filing. The software should generate the EPF-ECR reports for filing EPF returns, ESIC reports, and other reports.

Attendance, leave, and full-and-final settlements
The payroll software should integrate with a bio-metric attendance device and have accurate clock-in and clock-out data. Settlements to those who leave or retire should be seamless. The gratuity, bonus, outstanding leave encashment, and commissions should be generated accurately as and when required.

User-friendly interface
The payroll software should be easy to use as everybody may not be skilled in handling complicated features. Good software requires minimal training for your staff to learn to operate it. In addition, having a cloud-based system is incredibly beneficial to access data from anywhere.

Top-rated payroll software products
The following are some of the best payroll software products in the market:

• ADP smart compliance
• Gusto
• Workday Human Capital Management
• UKG pro
• RUN powered by ADP
• Quickbooks Payroll
• Patriot Payroll
• Paycor
• Paychex Flex
• Workful

You can select any of these deepening on what specific features your organization requires. Do not forget to compare multiple options and understand the terms and conditions.