Last Updated November 25, 2022
It is impossible to change the system once integrated. Like any other piece of technology, the software you have been using will become obsolete with time, if not updated. Changing payroll software can be very tricky. It’s a scary thought to switch to another software once your company starts to grow.
If you are an employer in need of efficient payroll software, you need payroll software for accountants that will help you run the business and keep the employees satisfied alongside.
So, it’s possible there are several questions in your mind now. But out of those several inquiries you need to begin with “how a payroll software will make things easier for me?”
Handling payrolls can become a nasty task when not handled properly. It’s not the minimum wage but the benefits, compensations, tax deductions, etc all are part of the payroll process.
So, keeping these points in mind, a list of factors is listed down below to help you choose the perfect payroll software for accountants.
Points to Consider when Looking for Payroll Software for Accountants
Payroll Software is the best tool for human resources. But for accountants, it is a double treat! Small businesses focused on remote hirings must assure that the payroll software they use can be easily used by the accountants working online for them.
Software Must Meet Your Needs
The first thing you look for in payroll software is that it must fulfill your business need. But first, you need to determine your payroll needs.
For instance, some of the most commonly included features in practice management software for a payroll includes;
- Form printing
- Employee accessibility
- Mobile compatibility
- Payroll tax filing
- Deposits etc
So once you have figured out the type of payroll needs that best suits your small business, you can then choose an adequate payroll software package. Knowing your needs and wants at this point is compulsory. Your decision in choosing the package will also affect your budget.
Complete Business Information
Payroll software for accountants is not only limited to employee information. You need to provide input about your business data as well. Business information like legal name, DBA (doing business as), address, telephone number, etc all needs to be mentioned.
So the business must be registered with an official name being used within the state government. Also, keep in mind that each state’s requirement for registration is different.
Clear Employee Information
Employee information must include the following;
- Legal name
- Social security number
- Wage deductions
- Tax filing status
Form W-4 contains all the preliminary information about the employee. At the time of hiring, a new employee is supposed to fill Form-W-4.
It is the responsibility of the employer to make sure all employees are handed the form W-4. at least for 4 years, the record of the form must be kept. That’s why the payroll software will decrease the odds of misfiling or lost records. At the time of setting the payroll software add the desired information for safe maintenance.
Keep The Tax Identification Numbers Up Close
Payroll software for accountants also need several tax identification numbers like;
- EIN – the employer identification number is used to report all federal taxes. When a new document is sent to the IRS, you will also need your EIN to be entered into the practice management software.
A new employer can apply for EIN online.
- Local and State ID – In some states, employers must have an ID that is used to report local taxes.
In case your state demands the ID, you need to enter the information in the payroll software for accountants as well.
Keep Up With Tax Rates
Every employer must withhold income taxes from employee wages. The FICCA taxes are also withheld. The tax rate for Medicare, social security number, employee wages, etc varies from state to state since the payroll tax regulations are also different.
Before starting to use payroll software, you need to confirm the tax rates first. Because you need to enter the tax rates into the payroll software for accountants also keep an eye on the tax deadlines. So also enter the tax due dates. It helps the payroll software to calculate how much tax is due till date.
Every business follows a specific pay period. Usually, it’s a 12-month pay period. Salaries are paid on a monthly basis. But a business may also choose bi-weekly payments instead. The pay period identifies the number of times an employee gets paid.
So whichever pay period is used add the information in the payroll software. That way employees will be compensated properly without any errors. Some states have specified the number of times an employee has to be paid. So keep such critical information in mind too.
The total wages an employee earns are recorded in the software as well. The software is designed for accountants to ensure that all information (whether its hourly rate or a salary) is recorded and complied with. Employees are also identified for the overtime wages. What if employees are given a bonus at the end of the year?
Relevant information about employee wages is compulsory to enter. Without it, payroll software will be a sitting duck. So when you are adding the details about employee wages, also consider other types of compensation. Such compensations or time-offs are also required to be added to the payroll software.
If it’s not your first time using payroll software, you need to collect the previous payroll records and enter them into the new payroll software for accountants.
Using practice management software means that the employer needs to keep all the previous records too for avoiding any ambiguity in the database. It helps to accurately calculate taxes and tax returns. The deductions are also handled carefully.
How many employees are currently working in the company? When entering the employee information you also need to enter information about new hires. Also including the list of turnover rates is crucial.
Many payroll software offers the feature to categorize the employees as old, new, left, and so on. This helps to analyze the team members for compensation too. So usually payroll software is priced according to the employee number bands. The more employees you want to add, the higher-priced package you need to subscribe to.
Payroll Software Mobility
Do you need to access the practice management software remotely too? This is a common case most of the time. Accountants want easy access, therefore, payroll software with ease of mobility is a great option.
For instance, My CPA Dashboard is one of the many cloud-based software for accountants. It can be accessed from anywhere.
So a business should consider the software that is mobile and allows you to access it with a unique ID and password.
For first-time buyers, you are always skeptical about the right option. Sometimes a payroll software for accountants might be offering great features but for a premium package which you cannot afford. So it’s best to have a backup plan.
Always opt for free trials. Trying out payroll software before committing it for the long term is a sound decision. So if you are not satisfied with the trial version or in case it doesn’t meet your needs, you can choose another payroll software.
It’s hard to pick a final choice. Payrolls are crucial to handle and a mistake can cause serious consequences. To better take care of your employee wages and compensation you need to use an easy dashboard.