Payroll Functions

Payroll software contains a multitude of functions that can make payroll processing run much more smoothly. Many companies are not even aware of all their payroll program can do for them! Here are some key functions to look for to save your company time and money on payroll processing.

After the Fact Payroll: This feature allows you to enter pay checks into the system for payrolls that have already been completed.

Deduction and Earning Codes: Deduction codes represent the calculations by which money is deducted from employee pay, such as health insurance, child care, etc. Earning codes represent the methods by which employees earn pay, such as hourly, salaried, overtime, etc. Most payroll programs come with a standard list of earning and deduction codes. If your needs are more complex, you should make sure you have the ability to customize your own codes.

Direct Deposit: This is the ability to transfer pay electronically into employee bank accounts. Some payroll programs offer this via their own service, and some offer you the ability to use your own bank. Direct deposit can save money on check paper and printing supplies.

Electronic Tax Filing: This feature allows you to file tax forms via the internet in place of printing and sending tax forms. All filing is done electronically via the web, which makes tax filing much more efficient.

Employee Garnishment: Allows you to set up, track, and pay employee garnishments to the appropriate vendor. Tracking garnishments in your payroll software ensures accuracy and also makes the process of paying garnishments much easier.

MICR Check and Signature Printing: MICR is the special magnetic ink that allows you to print checks on check paper, and also allows you to print a signature on the check. Having MICR check printing capability provides much more flexibility if different checks are used, or in case of check design changes.

Minimum Wage Calculation: This payroll feature lets you verify employee pay to ensure they are being paid minimum wage, helpful for piecework employees.

Pay by Piecework: This feature lets you set up codes for piecework pay rate, and then pay employees based on work completed. This tool is a must-have for those paying employees for piecework pay as it is much easier than calculating from a spreadsheet or by hand.

Project Tracking: With this feature, you can enter and track employee pay to a project, so you can easily calculate labor costs for that project.

Shift Differential: Shift differential pay handles multiple employee shifts and tracks the different pay rates associated with those shifts. This makes the tracking of shift differential accurate, and easier to track.

Time Clock Import: This features lets you pull time data from a time clock directly into your payroll system, decreasing manual entry errors and increasing efficiency.

Vacation Leave/Accrual: Use this feature to track and compute employee vacation/leave accrual, based on the rate you set up. This is a much easier way of tracking employee leave time than in a spreadsheet.

Vendor Checks: A vendor check refers to liabilities such as child support which must be paid by the employer. Having the ability to calculate totals and pay vendor checks directly from the payroll system can improve accuracy.

Workers Compensation: Tracking employee worker compensation by job type can help you save on worker compensation insurance. Your payroll software is an excellent place to track this information.