Home TECHNOLOGY Key Functions to Look for in an Online Payroll Solution
Online Payroll Solution

Key Functions to Look for in an Online Payroll Solution

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Look for a solution that makes it easy for employees to self-service their payroll documents, reducing the burden on HR. Also, consider how fast and easily a user can get standard or customized reports.

Look for a cloud-based system that offers mobile accessibility and is compatible with your existing business systems. Ideally, it should support all regions where your business does work.

Easy Access to Pay Stubs and Tax Documents

The right payroll software should let you easily access and print paychecks, PTO balances, and employee personal information. The ability to customize employee data is also important. You want to tailor fields like employee names, company addresses, and tax configurations to suit your business needs.

The top online payroll services also offer self-service portals for employees, making it easy to view pay stubs and change personal information in real time. This reduces the time HR staff has to spend answering employee questions and frees their attention to more important tasks.

It’s also important to consider whether the service offers a new hire wizard and direct deposit and how much each feature costs. Some services are priced per-employee basis, while others have monthly subscription costs and additional filing fees. Ask your sales rep about these pricing options before deciding on a system.

Automated Onboarding

Automated onboarding saves HR time and effort while giving new employees a more personalized experience. The process provides all new hires with the account information and logins they need to get started right away, and it also tracks login activity to ensure security and compliance.

Onboarding automation allows HR to spend more time on other important tasks like preparing new hires for their roles, setting up training or meetings, and providing support. This will help to reduce turnover rates and create a more positive employee experience.

It’s essential to have an effective onboarding process in place to retain talent. New employees can take up to 90 days without one to become fully productive. This is a significant loss of time that can be avoided with automated onboarding. Fortunately, there are several online payroll solutions with this feature. Look for a simple, easy-to-use interface to streamline the process.

Real-Time Reporting

Using automated systems to run payroll reports reduces the risk of human error. This is because data entry screens automatically validate entries and prevent duplicate information. These features help keep data accurate, eliminating errors that can result in fines from the IRS.

A good online payroll solution provides a bird’s-eye view of payroll expenses. This gives HR teams the visibility they need to make budgeting and expense reduction decisions that benefit the company. Many services also provide the ability to customize and export reports to meet specific business needs.

Payroll software eliminates the need to manually store files containing employee salary rates, contracts, work hours, deductions and more. This frees up time on other tasks, such as generating revenue-generating reports. Additionally, payroll systems can help ensure compliance with ever-changing government regulations. This reduces the number of mistakes that can cost businesses penalties and lost employee trust.

Time Clock Management

Online payroll systems that provide time clock management make tracking work hours easy for employees and managers. This helps promote a culture of punctuality and accountability, reduces time theft and ensures that accurate data is entered into the system every pay period.

These time-tracking capabilities also help businesses reduce compliance risk by ensuring that employee hours and wages are reported accurately for tax purposes. This can help avoid costly mistakes and penalties caused by manually calculating and filing taxes or overlooking deductions and exemptions.

In addition to a time-clock feature, many online payroll solutions include biometric employee time-tracking options that utilize an individual’s physical traits (fingerprint, Iris, thumb impression) to confirm their identity and eliminate buddy punching and other time-tracking errors. This can simplify payroll processing and make it easier for managers to review and approve employee time sheets and overtime requests.


Online payroll solutions offer a cloud-based solution to simplify complex operations. They automate calculations and filings, making it easier to stay compliant and error-free. The best provider will have a transparent pricing model and flexible plans to accommodate varying business needs.

A good system will also reduce the workload of HR, finance and payroll teams by offering self-service features that allow employees to access their pay-slips, tax documents and leave balances easily online. It should also provide comprehensive training to ensure that all team members fully understand how the software works and how it can improve their workflow.

A tightly integrated solution allows all teams to collaborate and share data seamlessly. This is especially important for businesses with multiple offices and remote workers who may be in different time zones. It should also offer strong security to prevent data breaches and compliance issues.


Compliance management is one of the most important features to look for in a payroll system. This feature helps businesses comply with local, state, and federal regulations. It also helps them manage complexities such as changing tax rates, records retention laws, etc.

The best online payroll systems will provide compliance features that help restaurants save time, reduce stress, and minimize non-compliance risk. For example, they will automatically update tax rates as they change and assist with compliance audits and reporting requirements.

Additionally, the best online payroll solution will allow organizations to customize the software according to their unique needs without needing coding knowledge or hiring IT professionals. They will have built-in best practices and recommended formulas that guide nontechnical staff through the configuration process step-by-step. They will also have top-tier security that protects sensitive data from breaches and other risks.

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