Quick Tips to Choose and Implement Online Payroll Software

Online Payroll Software

This year has been a rollercoaster ride for almost every sector and the corporate is no exception.

To stay afloat in these tough times, organizations have adapted to several working conditions and cultures that they were previously reluctant to.

Now, with the trend of remote working to overcome business challenges, came the need to embrace online software and technology. A rapid increase in the automation of one of the most elaborate & intricate processes of the workflow, i.e., payroll management has been seen in the past few months.

Today, payroll management software is widely used in companies to streamline the operations related to payroll processing. Some of the main tasks that are mechanized using online payroll systems include enabling payroll structure and verification, resolving payroll queries, maintaining tax compliances, managing expenses, and arrears, and providing payout insights.

Since these solutions make the entire workflow smooth and efficient, they are of extreme importance. Hence, businessmen/employers must pay extra attention while choosing, buying, and implementing payroll software. Let’s have a look at some quick tips for the same:

Selection Tips

Company Requirements

First things first, any software or technology that is brought into the company must align with the organizational requirements. The one who runs the business or, to be specific, the payroll in the company should define needs as per the overall objective, targets, and goals.

The online payroll software India has can be customized as per the varying demands of the buyers. So, when you shortlist the options, make sure the software is in accord with your company’s requirements.

User Preferences

Next comes the choices of the users. The HR professionals as well as the employees should have an equal chance to express their preferences before making the decision. The one who is ultimately going to use and operate the software should be able to personalize it as per his/her wish and requirement. So, the user’s inclination must also be considered while selecting the appropriate software for your company.

Payroll Features

Another factor that should be responsible for making a choice here is the kind of features that the online payroll software is offering. For example, direct deposit, employee self-service, reporting, tax filing, compliance management, etc. must be checked. And the features offered by the software should match with the ones that you need.

Learning Curve

The whole point of incorporating an online payroll system is to minimize human intervention. So, software that has a shallow learning curve, i.e., can be learned easily and doesn’t require specialized training is the one to go for!

Software Benefits

Learn the advantages of implementing a particular payroll software before doing so. An online payroll solution has the following benefits that should be analyzed beforehand:

  1. Quick and error-free calculations
  2. Auto-generated payslips and tax slips
  3. Salary direct deposit
  4. In-depth payroll reports
  5. Energy & time-saving
  6. Employee satisfaction
  7. Privacy & security of data, etc.

Purchase Tips

Request for Proposals (RFPs)

A request for a proposal should be prepared by the buyer as well as a demand from the vendor. The RFP should include detailed specifications for all processes and functions along with a complete picture of requirements. The same RFP should be circulated amongst all the selected software vendors.

A standard RFP for online payroll software in India must also be requested from the vendor that outlines what features and benefits their software can offer so that you can analyze the price-to-performance ratio.

Demos & Presentations

The second consideration while making the purchase should be to first invite vendors to give demonstrations and presentations of their payroll software. In this way, you can retain some part of the demo content to check whether what is being presented is offered or not. Plus, in-depth knowledge of the product can also be acquired through the same.

Budget Limitations

A budget is a must to be prepared before going for the purchase. Keep all your expenses in mind, all the overheads, and other financial aspects to formulate the budget for the software. Also, the price range that you decide shouldn’t burn a hole in your pockets but at the same time, any important feature should not be compromised to stay within the budget. Keep it a little flexible.


Finally, keeping all the aforementioned points into consideration, it’s time to pay for the software. So, make sure the decision-making power is not in an individual’s hands but in several important authorities. Moreover, while buying payroll software, be futuristic, and make sure it is scalable and flexible for a developing organization.

Implementation Tips

Execution Scheduling

Until now, it was all analysis and paperwork. Now, once the software is in your hands and comes to the workplace, the real job starts. It’s time to prepare a timeline for executing each process of implementation. Formulate a roadmap as to how you are going to proceed with the set-up stages. Prepare a calendar for the important dates like the ‘go-live’ date and then act accordingly.

Authority Delegation

Since payroll is an imperative part of the HR department and the organization altogether, it should be managed by safe hands. Cross-train your payroll staff to minimize dependency. Besides, it is vital to have additional specialists with authority to ensure on-time approvals.

Online payroll software is already quite robust. However, it needs to be kept under the lens of experts such as audit and accounting personnel, fund approvers, compliance teams, and stakeholders among others. Hence, delegate the officials as required.

Parallel Payruns

While you are implementing the payroll software, it is important to parallelly perform the required functions in the existing system. Meaning, you should make time and resource allowances for running the new payroll software simultaneously with the existing one with the same data input. This is going to be a thorough and careful step as you don’t want to carry out the same process twice.

System Integrations

Lastly, while implementing the online payroll software, it is extremely important to check if it can be integrated with other relevant systems or not. For instance, expense management and time & attendance management software must go hand-in-hand with the payroll system.

Zo, consider any updates or upgrades required for the same. So, these were the quick tips! All the points mentioned above must be meticulously planned and executed while choosing, buying, and implementing online payroll software.

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