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How Payroll Software for Small Business Can Handle Massive Payroll Problems?

  • payroll software for small business
  • 10 min read
  • July 19, 2023

Payroll Software for Small Business

In the era of technology, there are many relevant ones that small business owners can adopt. Amid multiple challenges, the payroll challenge is a massive one! Right?

Last year, 2022 was a big hit for AI & automation! What if as a small business owner, you can get benefits as business process automation, especially business automated payroll? Getting online payroll software for small businesses to avoid running payroll manually is a boon for an HR manager, an accountant, a business owner, or employees.

So, in upcoming years, if you don’t adopt a revolution like having the best payroll software then it can be a silly mistake! However, even if you decide to get the payroll software, you need to choose the appropriate one for your business.

If you are confused and wondering to get the best payroll software in India, then this ultimate guide can help you to understand-

  • Why you should invest in payroll software?

  • What are the benefits you will get from the best payroll software?

  • How to choose the right small business payroll software?

  • How to find the payroll services provider in a particular area?

Let’s dive in deep to know more about how payroll software can handle one of the biggest challenges in any business- PAYROLL!

As a Small Owner, Why Do You Need HR Payroll Software?

Human Resources processes are incredibly time-consuming. Just like that payroll is error-prone, daunting, and clumsy as well!

Small business owners’ aim in establishing a business is to minimize time and costs whenever possible. For that cause, automating payroll processing is beneficial!

payroll processing

There are multiple challenges you must face in payroll processing if you are running a small business.

Challenge #1: Complex Payroll Calculation

Indian payroll is complex, and if you have more than 10 employees, then it can be tougher. To count everyone’s salary, with a basic payroll solution, manually is daunting as well as clumsy. For manual payroll calculation, you need to count present working days as payroll data, add in payroll systems, and then process payroll by calculating it.

From attendance tracking to counting each and everyone’s pay takes too much time, also there are chances of payroll counting errors as well. Small business owners can’t take the chance to waste the efforts and time of a single employee in the company, that’s why it is more challenging.

Challenge #2: Uninvited Data Breaches

Accuracy and security are major concerns of any payroll operation, because it is a matter of money, Right? Because payroll operations consist of sensitive payroll data, it should be authenticated properly. Authentication & verification is the Process, every business or HR should follow for a seamless payroll system.

This can be only solved if there is automated payroll processing. Data breaches can occur due to various factors, such as paper-based work, weak cybersecurity measures in spreadsheets, inadequate employee training, malware infections, or vulnerabilities in systems. When a data breach occurs, it can lead to severe financial consequences, including financial losses, reputational damage, legal ramifications, and loss of employee trust.

Challenge #3: Compliance With Regulations

There are multiple types of statutory compliances in India, and before processing payroll they can be followed and added to payroll service. Small businesses must navigate their flow with the complex local, state, and federal taxes related to payroll, benefits, and other labor laws. Moreover, these regulations are changing, and adding them to the payroll system is necessary.

Non-compliance payroll can result in severe fines, and legal repercussions, which can significantly impact the business finance and reputation of your startup. HR departments in small businesses must establish robust payroll processes, implement online payroll software that automates compliance tasks and maintain accurate records.

Challenge #4: Payroll Tax Filing

Calculating payroll taxes (federal taxes or local taxes) accurately and on time can be a complex task for any startup or medium business, especially when considering state, and local tax obligations.

Does every HR know about taxes? Sometimes it may happen that managing payroll taxes involves too many daunting payroll tasks.

So, accurately calculating taxes, withholding, and remitting various taxes, such as income tax, unemployment taxes and etc can be missed. Small businesses may face challenges in understanding and keeping up with the complex tax laws, however, some reminders or automated systems can be a medicine for this headache

Challenge #5: Timely Pay Employees

Though, payroll processing can be time-consuming, paying employees on payroll period is necessary. But it can be quite messy or you can say hard especially when manual calculations and paperwork are involved.

In this case, ensuring that employees are paid accurately also on time is essential for maintaining employee retention, satisfaction, trust, and morale. Even though, the paying date is already decided, managing multiple pay frequencies, calculating timing & commissions, tracking real-time, and considering payroll tax filing, takes time and HR perhaps delays to proceed with payroll.

Read more: Payroll Outsourcing Service and Payroll Software- What to Pick!


No manual payroll now! – Adopt payroll software for small business!

Get the massive benefits of small business payroll software for an efficient payroll system. Don’t consider basic payroll, just go with the advanced version of it.

Know more about payroll services check Super Payroll!

To overcome these challenges, entrepreneurs can leverage payroll software for small businesses that automate payroll calculations also streamline payment processes. Payroll software integrated with HRMS, attendance management systems, leave management systems & many more helps small businesses to manage payroll operations easily.

How To Process Payroll Using A Payroll Software?

There are multiple activities coming under payroll operations, such as calculating timing, considering overtime of employees, taking data from the employee portal, calculating payroll by adding tax deductions, run payroll, and disbursing salary on time.

Payroll Software

These all operations can be handled manually or with the software. If you consider manual payroll calculation then all things can be performed by using Microsoft Excel or Google spreadsheet or on paper. Whenever you adopt the manual calculation, the chances of mistakes will be increased. Sometimes it may be effective with very little staff but this is usually more time taking and increases chances for mistakes.

Whenever you avail or get the best payroll software for small businesses, it can help you to pay employees without errors, within a payroll period without any manual intervention.

Here are steps to process payroll using payroll software for small businesses:

payroll software for small businesses

Step 1: Install Time Tracking or HRMS

First of all, you need to integrate payroll software into HR software or need to install an attendance or time-tracking system in your organization. If you have a budget, we prefer to install these automated systems, however, if you don’t prefer then you need to count manually with proper working days.

Step 2: Define the Payroll Policy

Now, coming to payroll calculation- This is payroll automation, so no need to count by yourself. You just need to define the payroll amount, deduction of taxes, compliance regulations, and complete payroll policies.

Step 3: Count Attendance & Leave

To automate payroll processing is not only a function of HR Payroll Software now employee portal plays a role. Employees need employee data such as adding a daily clock-in and clock-out time tracking, they can check payroll information and at last, they can check their payroll policy – (like what payroll components such as are there in their payroll), whether he is part-time or full-time payroll employee, also can check pay stubs as well.

Step 4: Calculate Payroll

Full-service payroll software for small businesses automates the entire payroll process, then with all deductions, and payroll tax filings, payroll software helps with payroll direct deposits. Most payroll software has this feature to consider the different bank accounts and process payroll to pay on time.

Also, See: Compliance Benefits of Using Payroll Services – Switch to Superworks!

Benefits Of Small Business Payroll Software To Solve Payroll Challenges

Payroll Challenges

The main benefit of payroll software for small business is – the automation of tedious payroll tasks!

Automating payrolls helps you save time and build more profitable businesses. You already read the above payroll challenges and these all can be solved with only one magic tool- “Payroll Software”!

  • You can reduce labor costs by reducing costs associated with payroll processing.

  • Higher accuracy and lower cost – Automated, online payroll services increase accuracy and reduce risks.

  • No fuss, no muss of time tracking of employees, small business payroll software can automatically take input through the employee self-service portal.

  • Payroll software streamline payroll processing to make all things smooth. Processes sit with the basic pay, deductions, and net pay and then finalize it.

  • The best free payroll software sends pay slips to employees and through a portal they can download directly from the payroll software or mail.

  • At last, on a payday, employees get their salary without any hassle.

There are many more advantages you can avail for your small businesses from cloud-based, automated, online payroll software. By using these payroll solution, you can streamline payroll management, expense management for HR as well as employee benefits.

This Is Your Guide to Top Small Business Payroll Software, 2023!

This is an unsaid truth, every business needs some good technology or system to make the process smoother. In this case, you don’t need a MIRACLE, however, if you have the best payroll software.

In the era of technology, there are several payroll software providers, and choosing the best payroll company among them needs research. But, we can solve your payroll problem easily.

We have made a guide as,

  • You are now aware of small business payroll challenges.

  • You know how payroll software easily manages payroll.

  • You also know about the benefits of payroll software.

  • Now, we can help you to choose the best one, and there is- Super Payroll by Superworks.

Let’s talk more about the payroll software made by us for especially small business owners.

Written By :

Alpesh Vaghasiya

The founder & CEO of Superworks, I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments. With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally. The core mission of Superworks is Connecting people, Optimizing the process, Enhancing performance.

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