What You Need to Look for in Payroll Software

22 September, 2017 Enrique Estagle

Payroll software takes away the hassles of manual calculation of each employee’s pay. It drastically cuts down processing time and errors, which means that your staff always get paid for the right amount at the right time.

A quick Google search for “payroll software” shows that there are tons to choose from. But what exactly should you look for when choosing a payroll software for your business? Here are some of the items you need to consider before buying:

Easy to Use

The reason why you’re buying payroll software is to make things easier for you. That’s why, first and foremost, it has to be easy to setup and use. It should have a convenient method of adding information to the software and it shouldn’t be confusing to use.

For added convenience, consider purchasing cloud-based payroll solutions over traditional, desktop-based software. They allow you to access your account via the internet anytime, anywhere, on any device — including mobile. Some cloud-based payroll software also offers an employee portal, which lets your staff see how much they are earning, as well as other important info.


Payroll software handles a lot of sensitive information. Needless to say, it has to be secure. If considering a desktop-based solution, make sure that it encrypts the data inside the computer — although you might have to take additional steps to further secure the computer itself. Also, make sure that it has password protection and permission levels.

While cloud-based payroll software takes away most of the stress of securing the data on your end, make sure to ask how they are properly safeguarding your data on their servers. Make sure that they connect to you on a secure layer (ex. the address starts with https instead of http.) In addition, find a cloud-based payroll software that uses a secure password and two-factor authentication.


Every business wants to grow. And your payroll software has to be ready to handle a growing number of employees. It has to handle multiple sites at the same time, accounting for each site’s different requirements.

Handles Taxes and Benefits

Payroll isn’t just about calculating employees’ paychecks, it also handles their taxes and other benefits. Whatever payroll software you choose, it must be able to accurately calculate deductions for tax, social security, healthcare, and other benefits such as superannuation. In addition, it must be able to update itself whenever new rates are released.

Reporting and Cost Tracking

Whatever payroll software you select, make sure that it automatically generates reports for you. It should show you important information such as individual paycheck history, deposit detail, deduction history, and more. In addition, it should help you track overall costs to help you manage each cost centre.

Back Pay Support

Calculating and settling former employees’ back pay is very tricky. Make sure that the payroll software you’re purchasing can handle back pay on your behalf, ensuring that it is settled quickly and accurately.


Being able to work seamlessly with other programs is a big plus for a payroll software. Check if it seamlessly integrates with your accounting software, your enterprise resource planning (ERP) platform, and other programs. This allows you to have a bigger picture insight on your business with data exchanged across these solutions.


Tanda works well with the world’s leading payroll software, whether they are cloud-based or desktop-based. Its payroll integration feature it exports approved timesheets with gross wage calculation straight to your payroll software with one click. This means that it can further cut down your payroll processing time from hours down to minutes.

Click here to find out which payroll software works with Tanda.

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