How to Choose the Best Hourly Payroll Software for Your Employees
Getting payroll right for your hourly employees is the difference between smooth sailing and late-night math sessions. Pick the wrong system, and you risk losing on time and money, while opening the door to stress you definitely don’t need.
But there are tons of options out there, and it’s not always clear what you really need versus what looks good on paper.
But don’t worry – you’ve got this, and we can help! Keep reading to find out how to pick the hourly payroll platform that makes the most sense for your small business. With the right system, you can run your payroll process like a dream and pay employees correctly and on time, every time.
Step #1: Figure out the type of hourly payroll software you need
Before you make any decisions – pause for a minute to think about what your business really needs. For example:
- How many hourly workers do you have?
- Do you need the software to handle overtime and tips?
- Should it also take care of payroll taxes, or is that something you’ll handle separately?
- Do you need tools to track labor costs, balance budgets, and generate payroll reports?
Don’t get distracted by shiny features that don’t serve a purpose for your business. Unnecessary add-ons just make the software more complicated to use and usually come with higher costs.
Step #2: Choose a system that’s easy to use (for hourly time tracking)
A messy payroll system makes life harder for everyone. You want a solution where entering hours is quick and straightforward, employees can check their pay anytime without bothering you, and it’s simple to process payroll from start to finish.
For hourly time tracking, your system should be able to:
- Automatically figure out overtime, double-time, and different pay rates.
- Handle split shifts, tips, multiple pay rates, and wage garnishments (without extra effort).
- Give clear payroll reports showing hours, overtime, labor costs, and any deductions.
If the system you’re considering can’t do that, you’re at risk for under or overpaying your employees, miscalculating your tax filings, and other financial headaches.
Step #3: Watch out for sneaky charges
Some payroll software looks like a steal…until you get hit with surprise add-on fees. A lot of programs hike their prices for things like tax filing, direct deposit, or even just adding a new employee (yep, really!).
Always read the fine print and make sure you know exactly what you’re paying for before you commit to anything.
Step #4: Make sure it works well with your current set up
If a payroll tool doesn’t line up with the systems you’re already using, it can end up being more trouble than it’s worth. For example, if your time clock or accounting software doesn’t connect properly, you could find yourself entering the same information twice – a big waste of time!
Before choosing a solution, test it to see how it fits with your daily workflow. The right one should take a lot of boring, time-consuming tasks off your hands without messing with the rest of your operations.
Step #5: Prioritize support and reliability
Even the best payroll software can have a bad day. That’s why it’s so important to know that someone’s got your back if any issues pop up. When shopping around for your payroll solution, ask the following:
- Can I get a hold of a real person if I have a question?
- Is their help section easy to understand, or is it loaded with confusing tech jargon?
- Do they have a good reputation for responsiveness from past or current customers?
The last thing you want to be left in the lurch for hours when something goes wrong with payroll. Choosing a provider that’s prompt, reliable, and cares about customer satisfaction is the only way to go.
Step #6: Find a software that can grow with your business
Hoping to grow your business in the future? Well, if an expansion is in the cards, you’ll definitely want a payroll system that can effortlessly keep up.
As you hire more people – or maybe open a new office – you’ll need a solution that can handle more employees and multiple pay structures without breaking a sweat. Trust us, choosing a system that grows with you is way easier than having to switch everything over later.
Step #7: Make sure your employees’ data is protected
Finally, it’s important to pick a system that takes your employees’ security and privacy very seriously. After all, their personal information, Social Security numbers, and bank details are all stored in the online payroll system. That’s not to mention your business’s financial records and payroll data, which also need to be kept safe.
Look for features like encryption, two-factor authentication, and regular security updates to make sure sensitive information stays protected.
Payroll Central – the payroll partner that offers it all
Searching for a payroll solution that offers all of the features above – and much more? You’re in luck! Payroll Central provides everything a small business needs to run payroll like a dream. Whether it’s tracking hours worked, managing overtime, handling taxes, or processing direct deposits – consider it handled.
You don’t have to create paper checks, manually distribute pay stubs, or hire a dedicated payroll manager just to keep things running anymore. Our cloud-based platform automates the entire payroll process, letting your employees access their pay and pay stubs online anytime, anywhere. From teams of 3 to 300, we create a solution tailored to your business.
Our platform lets you submit payroll, update employee info, and manage everything from anywhere – all while staying fully compliant with tax, labor, and ACA laws and eliminating costly payroll errors.
Plus, you’ll be paired with a dedicated support team who’ll guide you through setup, electronic onboarding, and any questions that come up along the way.
Stop stressing about payroll once and for all. Get in touch today and pay your employees accurately and on time, every time.