Doing your payroll manually by yourself is the risky business you will ever perform. Many companies, irrespective of their scale of business, are commonly committing this major blunder.
Logically, when you allocate extra work to your accounting or HR team with payroll, they will make mistakes; instead, by spending a few on payroll software, you can save your company from huge fines.
Nowadays, payroll software pricing plans are conveniently budget-friendly and useful for any business structure.
This article has clarified many of your fundamental payroll software pricing problems through an ideal roadmap towards the best purchase.
In-house or Outsource
Payroll is much more than handing over the check to your employees. From withholding taxes to providing wage garnishments, it is a hectic process.
The majority of the large companies hire a separate in-house payroll administrator, while small to medium-sized businesses pile up that duty to HR or accounting department.
Some business owners hand over this complex responsibility of handling tax codes and employment laws to dedicative payroll software companies.
However, outsourcing has some severe challenges like no guarantee for security of the employees’ personal data and service cost higher than payroll software.
To eradicate this issue, payroll software vendors create a hybrid solution comprising both payroll software and outsource assistance.
Thus, you can take care of the payroll internally and then hand over accounting reviews and tax calculations alone for outsourcing.
Software vs module
You need to know that there is a clear difference between a payroll module and payroll software.
A payroll module is an additional feature included with the Human Resource Management System (HRMS), accounting software, enterprise resource planning (ERP) solutions. In contrast, payroll software is a complete package of all these features presents within a single system.
If you have any of these features in your company, you can go for the payroll module that automatically integrates with the existing software. This decision saves you money.
If you don’t have any accounting or HR management software, it is good to invest in an all-in-one payroll software.
Per month subscription scheme
A SaaS pricing model requests the company to pay a monthly fee to access the payroll software through the cloud.
One of the regular subscription plans is a per month per employee monthly scheme.
For example, Gusto, a payroll software pricing includes $19 per month, plus $6 per employee for a basic plan. When you calculate for 100 employees, then it would cost around $619 for a month.
The more features included in the basic package, the more will be the pricing.
For extra services like HR, personal assistance to file taxes, and technical support, the payroll software pricing plan includes additional charges.
The license fee
Companies that demand HRMS and ERP on-premise buy the permanent license for that particular payroll module.
This one-time purchase doesn’t come under any monthly subscription and also not inclusive of any upgrades.
Using licensed software, you can customize your payroll software the way you want for your business.
There are other additional costs for payroll software, which includes implementation, support, and maintenance.
The implementation comprises feeding the employees data on the software and integrating the payroll software with accounting and HR modules.
Every payroll software offers customer service support to their users through email and manual instructions about the software.
Of course, every software requires proper maintenance, like regularly updating and upgrading the payroll software. Particularly, it is essential when tax codes and compliance laws change from time to time.
Most payroll software is available with free trial versions, which you can use to decide whether it fits your business or not. Kindly share the payroll software and the pricing plan you have adapted for your business in the comments below.