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9 Impactful Features of Payroll Software

Lauren DeBisschop
Jan 26, 2024
10 min

Learn how you can optimize your processes with these payroll software features.

Table of Contents:

When choosing payroll software, it’s important to understand your business’s specific requirements and identify the features that will most significantly benefit your business. The first step is learning about the most impactful features available in payroll software.

In this blog, we'll discuss several features you might want to include on your list of must-haves. Following this, you can start searching for a provider capable of meeting all your requirements.

What is payroll software?

Payroll software is a tool for businesses that facilitates the task of paying employees. It accurately calculates employee wages incorporating deductions like taxes, benefits, and more. Payroll software also manages the distribution of payments to employees, whether by direct deposit or other means.

What is the importance of payroll software?

By integrating many of the pieces of the payroll process into one system, payroll software reduces the risk of errors and saves time for businesses. It automates many of the tedious tasks involved in processing payroll, thereby freeing up your team to focus on more strategic initiatives.

9 Key Payroll Software Features

These features are important for your business to evaluate, as they each play a role in enhancing the payroll process, improving efficiency, compliance, employee satisfaction, and more.  

  1. Direct Deposit

Direct deposit is a secure and convenient way to pay your employees. By transferring earned wages directly into your employees’ bank accounts, direct deposit eliminates the need for physical checks, which reduces paperwork and administrative work. This feature also ensures that employees receive their payments promptly and reliably, enhancing their satisfaction and trust in the payroll process.  

Tip: Consider payroll software that includes alternative payment options like paycards to promote financial inclusion at your business.

  1. Time Tracking Integration

Integrating time tracking with payroll software is particularly beneficial for businesses with hourly employees. This feature automatically syncs work hours to payroll, ensuring accurate wage calculations based on actual hours worked. It reduces the manual effort involved in cross-verifying timesheets, which helps to minimize errors and save significant administrative time.  

  1. Employee Self-Service

Employee self-service portals allow staff to complete many tasks on their own and reduce the workload on payroll administrators. These portals empower individuals with the ability to view paystubs, update tax forms such as their W-4 for accurate payroll tax withholdings, and more. Employees appreciate the autonomy and convenience, while payroll teams can focus on more strategic functions.

  1. Reporting

Effective payroll reporting tools support tasks like reconciling accounts and verifying employee payments. By providing access to comprehensive, real-time reports, these tools provide valuable insights into your business’s operations. As a result, you can make informed business decisions, ensure regulatory compliance, and enhance your overall financial management.

  1. Tax Filing

Handling payroll taxes is a complex, but critical task. Payroll software can automatically calculate, withhold, and submit these taxes on your business’s behalf. This feature ensures accuracy in your tax filings and relieves your business of a significant compliance burden, avoiding potential penalties and legal issues.  

  1. General Ledger (GL) Mapping

To accurately track your business’s expenses, it's important to update your General Ledger (GL) with each payroll cycle. Payroll software capable of performing GL mapping helps ensure your business maintains accurate financial reporting. By automating the transfer of payroll expenses to your general ledger, GL mapping reduces manual data entry, minimizes errors, and saves time in reconciling accounts.  

  1. Garnishments

Payroll software that supports garnishment processing ensures compliance with legal requirements. By automatically deducting and remitting garnishments like child support or tax levies from employee wages, your business efficiently meets its legal obligations. This automation provides a clear, consistent approach to garnishment handling for your business and reduces the potential stress or confusion for your employees.

In the Greenshades blog - Everything you need to know about Wage Garnishments and Child Support.

  1. Deductions

For businesses offering healthcare, retirement plans, or other benefits requiring paycheck deductions, effectively managing these deductions is crucial. Payroll software actively calculates and applies these deductions during payroll processing. This approach ensures compliance with benefit plans and legal regulations, while also maintaining employee trust and satisfaction.  

  1. ACA Reporting and Monitoring

For businesses needing to comply with the Affordable Care Act (ACA), navigating its stringent requirements can be challenging. Having software that monitors and reports on ACA-related data is key for easing that burden. This feature helps your business stay compliant with healthcare regulations, avoiding penalties and ensuring that employee benefit requirements are met.

Transform Your Business Processes with Payroll Software

Choosing the right payroll and HR software is a decision that impacts the efficiency and effectiveness of your business operations. From direct deposit to ACA reporting and monitoring, each feature plays a role in enhancing payroll processing, ensuring compliance, and promoting employee satisfaction.

As you consider all the available options, remember that the best software is the one that aligns best with your specific business needs, streamlines your processes, and supports your team in their strategic goals.

Not sure what payroll software is right for you? Read our guide Choosing the Best Payroll Software to find the solution that fits your business's unique needs.

Discover the Greenshades Difference in Payroll Management

Greenshades’ solution meets the varied demands of payroll management, making complex tasks simpler and more manageable. With features like GL integration, reliable tax compliance, and user-friendly employee self-service options, Greenshades focuses on providing an efficient payroll experience.

We understand the challenges businesses face with payroll and strive to simplify these processes for you. Schedule a demo today to see how.

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