HR Management Essay Paper on Payroll Processing Software Programs

Payroll Processing Software Programs

Introduction

Every business organization pay salary and wages to its employees and therefore they must manage payroll. Small business usually process their payroll manually but when the business expands beyond a certain level, managing payroll manually become a hefty task and time consuming due to large number of employees. Various systems have been developed over the years to help businesses process their payroll and ensure effective administration of salary and wages to their employees. Currently, there are software that are viable to small businesses that have less than 50 employees as well as those viable to large corporations with thousands of employees (Singh, 2014). Choosing the right software to be used in the organization is often difficult since there are many options in the market and every organization has different needs. The cost of the software is also a determining factor when an organization is choosing the best software to use in the management of payroll (Singh, 2014).

As head of the human resource department in a small manufacturing organization with 200 employees, I have been tasked to recommend a software program to handle both payroll processing and wage and salary administration. From the research, I have come out with three payroll systems that can be applied within the organization to facilitate in-house processing of payroll and salary and wages administration. The three payroll software includes sage payroll, center point payroll, and Ascentis Payroll system. Each system has their strength and weakness when being applied in the business. The payroll systems also have different price and, therefore, the organization must carry out a thorough analysis before making the decision on which to apply.

Center Point Payroll

Center Point Payroll provides in-house payroll processing and salary and wages administration. Center Point Payroll is flexible and can be used in the business of any size and complexity. The basic function of the software includes payroll processing, direct deposits, 401-k tracking, benefits management, attendance management, accounting integration, payroll tax management, wage tracking and W-2 preparation among other functions. The cost of the software per year is about $795 in addition to other processing cost (Norimy, 2011).

Strengths

  • It can be customized to much business needs
  • Strong reporting features
  • Can be integrated with other systems in the organization
  • Ability to handle several human resource functions

Weaknesses

  • Lack inbuilt HR functions
  • Very expensive

Ascentis Payroll

Ascentis Payroll is a web based payroll management tool designed to meet unique needs of small and medium size businesses. Ascentis Payroll reduces payroll processing time by 30% and produces a wide range of reports to be used by the human resource department as well as the accounting department.  Some of the basic functions of Ascentis Payroll include real-time payroll processing, direct deposits, tax filing, and ACA compliance among others. Ascentis Payroll can be integrated with other software such as Ascentis Recruiting, Ascentis HR, and Ascentis Timekeeper to improve it HR functions (Hao, Guangli, Yuhuan, & Yilong, 2012).

Strengths

  • Highly customizable to much business needs
  • Can be integrated with other human resource systems to improve it functions
  • Reduce payroll processing time by 30%
  • Highly accurate since it identifies payroll mistakes in real time
  • Less costly

Weakness

  • Only applicable to small and medium size business
  • Limited HR functionality unless integrated with other software

Sage payroll

Sage payroll is an in-house payroll-processing tool used by several small and medium business organizations. The system offers functions such as payroll management, direct benefits, HR report generation, workforce management, employee training management, talent management (Kingston, 2012).

Strengths

  • Relatively low cost
  • Simple user interface
  • Can be integrated with other information system and third party software

Weaknesses

  • Not recommendable for large organization
  • Lack of social media tools
  • Limited human resource functionality

Recommendation

As a head of the HR department, I would recommend the organization to adopt Ascentis Payroll for in-house payroll processing and salary and wages administration. The software is highly customizable to business needs and can be integrated with other systems in the organization to improve its functionality. Additionally, Ascentis ensures a high level of accuracy in payroll processing and ensures compliance with various legislations that governs businesses. Ascentis Payroll is also less costly hence; the organization will not incur much cost (Cruces, Galiani, & Kidyba, 2010).

Wage and salary plan administration and payroll processing should be housed in the human resource department, but the accounting department should have real-time access to the HR data. The main reason why the payroll processing should be handled by the HR department is because the HR department is responsible for the management of human resource needs in the organization (Norimy, 2011). Thus, most of the employee’s data are held by the HR department, and the report generated by the payroll software can help to assess the human resource needs of the organization. Nevertheless, the accounting department requires payroll data from the human resource department for planning and budgeting (Hao, Guangli, Yuhuan, & Yilong, 2012).

Conclusion

From the assessment of the organization need, the top management should adopt Ascentis Payroll system to save time, improve accuracy, and ensure compliance by all employees. The system will also provide real-time data on the organization workforce at any time.  The payroll system should be customized to mat all the organizational need (Farah, 2010).

References

Cruces, G., Galiani, S., & Kidyba, S. (2010). Payroll taxes, wages, and employment: Identification through policy changes. Labour Economics, 17(4), 743-749.

Farah, S. (2010). Cloud computing or software as a service—which makes the most sense for HR?. Employment Relations Today, 36(4), 31-37.

Hao, Z., Guangli, X., Yuhuan, Z., & Yilong, L. (2012). A salary management system for small and medium-sized enterprises. Physics Procedia, 24, 2255-2260.

Kingston, W. (2012). Sage 100 ERP I Customer Success. Sage, 866, 530-7243.

Norimy, M. I. (2011). Payroll Processing: Outsource or do it In-House (Doctoral dissertation, Universiti Utara Malaysia).

Singh, G. (2014). Implementation and Development of a Proposed Payroll System. International Journal of Research, 1(6), 954-965.