5 Automated Payroll Systems Considerations For Small Businesses

Automated payroll systems are becoming increasingly more popular. This popularity is for good reason. Not only do automated payroll systems save small businesses time, but they can also reduce the amount of mistakes made. However, these advantages cannot occur if the wrong system is chosen. As an HR team member, you must be fully aware of what to look for in a system. Read on to discover what to consider when looking at automated payroll systems for small businesses.


Small businesses, especially ones that are trying to expand, should always be conscious of pricing. Reducing business energy use is a great way to cut back on costs as a business. You’re able to cut back on costs with automated payroll systems as well. Prices range per software system as well as per plan. There are monthly subscription plans, per-user pricing plans, and quote based pricing plans among others. Pricing is commonly based on how many employees a company is paying. However, if you’re in need of additional features, you will need to pay additional costs. Determine your budget based on any additional features you may need. Money is definitely a major factor worth consideration when looking at automated payroll systems for small businesses.

Proven Compatibility

Finding an automated payroll system that is compatible with other systems that the business uses is crucial. You must also ensure that it will be able to grow as the business does. Expansion could lead to your company’s name turning into a famous name. If that is what the future of your company holds, you’ll want an automated payroll system that doesn’t hold you back. Research the integration capabilities of each automated payroll software option you’re considering. Can it work with the HR software and financial software the company uses? Make sure the answer is “yes” before committing to a system.

Payroll Tax

You may have heard that automated payroll systems can rid businesses of payroll tax fines. If this played a major role in persuading you to consider such services, you must do your research. Triple check that the system you choose can guarantee no payroll tax fines or penalties. Certain systems provide a guarantee that you will not be fined. Those same systems also agree to reimburse any company who is fined. Consider this component when choosing from the numerous payroll systems for small businesses.

Employee Self-Service

This is an important feature for employee satisfaction. You’ll need more than just inspirational quotes to keep your workers happy and motivated. An employee self-service feature allows employees to see their payroll history. They are also able to log in to add their hours if desired by the business owner. These inputs would be included in the salary calculations done by the automated payroll system. By choosing a system that provides employee self-service, you will relieve yourself your other HR team members from constant questions concerning payroll. This is due to employees being able to log into the portal, where their questions can be answered. If this feature could benefit the small business, take it into consideration when sifting through the automated payroll systems.

Secure Backup

Although it would be nice to be able to completely rely on one system, it’s simply not a good idea. With that being said, make sure you acquire a secure backup plan for the small business you’re working for. In the case of the system or computer crashing, you must have the payroll records saved elsewhere. This will prevent company panic. It will also prevent tons of time wasted re-accumulating the information. Store the records on more than one database for easy recovery. When contemplating automated payroll systems, creating and maintaining a secure backup plan should seriously be considered.

Automated payroll systems can greatly benefit small businesses. There are many elements to acknowledge when considering using one. The first element that should be looked into is the pricing. Next, narrow down your search based on which ones are compatible with your other systems. You can narrow it down further based on the guarantee of no payroll tax. Employee self-service is also a beneficial feature to consider. Last but not least, don’t overlook the need for a secure backup. These are all factors that you should consider when choosing between the various automated payroll systems for small businesses.

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