HomeHCMPayroll 101: Overview of Payroll Tools and Technology

Payroll 101: Overview of Payroll Tools and Technology

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payroll 101 Overview Of Payroll Tools And TechnologyPayroll is often complicated by employee turnover, changing regulations, and other factors. When payroll practices are not carefully monitored, businesses and organizations collide with employee frustration, fines for non-compliance, and bookkeeping chaos overall. Fortunately, various payroll tools are available to simplify the process.

Most Common Payroll Tools

There are various options that are suitable for a variety of company sizes and needs, including:

In-house Payroll Processing

This option is most viable for extremely small workforces – that is, fewer than 10 employees with little variation in weekly schedules. In these cases, onsite employees can generally use payroll software to manage the process.

You should be cautious with in-house payroll processing, however; it can sometimes prove to take away valuable time from important business tasks. In-house processing can also be more costly than a high quality, scalable outsourced payroll.

Bookkeepers And CPAs

These individuals typically prepare payroll and tax records, but may not offer tax filing services.

Responsibilities ultimately lie with you, the employer – not bookkeepers or CPAs, so it is crucial to ensure these professionals remain up-to-date and flexible regarding changing regulations.

Online Payroll Services

payroll 101 Tools & TechnologyThese include knowledgeable and qualified experts in the field who keep pace with daily obligations and act in full compliance with relevant regulations. These payroll professionals handle everything from direct deposits to automatic deductions, paychecks, and more.

Online payroll entities enable employers to manage and monitor payroll from a secure web browser at any time of the day or year. Additionally, employee vacation, sick time, and other data can be integrated into the system.

There are many online options you can put to good use that also offer tax filing and payment, and email updates, as well that are all customizable based on your needs.

Are You Utilizing Human Capital Management?

Besides each of these options, a wide array of payroll tools can be implemented.

Referred to as Human Capital Management (HCM), this software is capable of managing Human Resource matters in addition to payroll processing. With the growing popularity of cloud services, these platforms can also operate within clouds.

HCM Software Features

Time Clocks

This feature can pull relevant information directly from the system, whether the system consists of badge readers, time clocks, attendance recorders, or security access authorizers.

Pay Types

Software tools can accommodate a variety of pay types and labor classes, based either on flat amounts or percentages. They can also be programmed to changes in pay rates, such as those based on performance and probationary periods

Leave Tracking

As the term implies, this feature enables the tracking of available paid time, such as sick time, holidays, vacation days, parental leave, and bereavement. Requests for time off can also be submitted and recorded through this software.

Payroll Processing

This feature allows for payroll processing based on a number of factors, including departments, work locations, earning types, deductions, benefits, and tax categories. Payments can be programmed to include both paper checks and direct deposits.


As you know, payroll deductions sometimes vary widely among employees. Common deductions include student loan payments, garnishments for child support, union dues, and retirement plans.

Each of these deductions can be managed by payroll processing software.

What Payroll Tools Should You Be Using?

Want to learn more about how your company can implement the right payroll tools to increase your efficiency?

Click below to get a free consultation with a payroll expert.

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