5 Must-Have Features In A Payroll App For Tech Workers
Payroll can incur errors if not managed professionally. These errors can even mess up a company’s finances. Some business managers try to take charge of payroll systems without consulting a payroll expert and end up making mistakes.
Payroll is not an easy task, especially with fluctuating incomes, varying tax rates, and intricate compliance regulations, and it requires an export with financial qualifications. These matters can cause great penalties or fines for your company.
If you are a tech worker, a freelancer, or a contractor and lack the financial qualifications to handle salary management, you can always opt for a reliable payroll management app. These apps offer tools that make the process easier, automate tasks, and provide valuable insights, helping tech workers focus on what they do best: their work.
Let’s discuss what you need to look for in a payroll app and what must-have features a good payroll app will have to offer you.
Feture #01. Time Tracking And Timesheet Management
According to Harvard Business Review, the U.S. economy wastes $7.4 billion a day in productivity due to workers not recording their hours. For tech workers, freelancers, and contractors, accurate time tracking is essential for several reasons. It helps in billing clients accurately, especially for hourly rates or fixed-price projects.
Moreover, it aids in project management, allowing you to estimate timelines, allocate resources efficiently, and track project profitability.
Automated time-tracking features significantly streamline this process. With a few clicks, you can record time spent on specific tasks, projects, or clients. These apps often include time-off request features, making it easy to manage vacation, sick leave, and other absences.
Additionally, integrating your payroll app with popular project management tools like Asana, Trello, or Jira can further optimize your workflow by automatically syncing tasks and time entries.
Feature #02. Tax Filing And Compliance
Do you know how tax filing and compliance can be vital for your country’s economy? Well, in fiscal year 2021, federal payroll taxes brought in a whopping $1.3 trillion, representing 5.8% of the nation’s GDP and 32.5% of all federal revenue.
These figures underscore the complexity and significance of tax compliance. For tech workers, freelancers, and remote workers, navigating the intricate web of federal, state, and local tax laws can be particularly challenging.
Staying compliant with these regulations is crucial to avoid penalties and legal issues. However, it can be time-consuming and prone to errors. A reliable payroll app can alleviate these burdens by automating tax calculations and filings. These apps stay up-to-date with the latest tax laws and regulations, ensuring accuracy and peace of mind.
When considering payroll software, OnPay Payroll is a popular choice for small businesses, often lauded as one of the best payroll software for small business needs. Its user-friendly interface and accurate tax calculations make it a reliable tool for managing payroll and tax compliance.
Feature #03. Direct Deposit And Payment Processing
A study by ADP Research found that over 80% of employers in North America offer direct deposit, and 80% of employees say they prefer it. However, more than 50% of employers still offer paper checks.
Direct deposit offers numerous advantages, including faster payment processing. Funds are directly deposited into your bank account, eliminating the need for physical checks and potential delays. Additionally, direct deposit enhances security by reducing the risk of lost or stolen checks.
While direct deposit is widely preferred, it’s essential to have flexible payment options. For instance, ACH transfers are suitable for domestic payments, while wire transfers are ideal for international transactions.
In some cases, paper checks may still be necessary, particularly for vendors or contractors who don’t have direct deposit capabilities. A comprehensive payroll app should seamlessly integrate with various payment processors, ensuring you can choose the most convenient method for each payment.
Feature #04. Expense Tracking And Reimbursement
Accurate expense tracking is crucial for tech workers, especially freelancers and contractors. Not only does it help in claiming legitimate tax deductions, but it also aids in budgeting and financial planning. With meticulous recording of expenses, you can ensure that your tax returns are accurate and avoid potential audits.
Automated expense reporting and approval workflows streamline the process. These features allow you to capture receipts, categorize expenses, and submit expense reports electronically. Furthermore, they enable managers to review and approve expense claims efficiently, reducing processing time and minimizing errors.
For those who frequently travel or incur business expenses, integrating your payroll app with popular expense management tools like Expensify and QuickBooks can be a game-changer. These integrations allow you to automatically sync expense data between the tools, saving time and effort.
Feature #05. Payroll Reporting And Analytics
Detailed financial reports are the cornerstone of effective financial management. For tech workers, freelancers, and contractors, these reports provide valuable insights into income, expenses, and tax liabilities.
With the analysis of these metrics, you can make informed decisions about budgeting, forecasting, and tax planning.
Customizable reports and dashboards offer unparalleled flexibility. You can tailor these reports to your specific needs, focusing on the key metrics that matter most to you.
For instance, you might want to track your monthly income, quarterly expenses, or yearly tax payments. These reports can be visualized in various formats, such as charts, graphs, and tables, making it easier to identify trends and patterns.
A robust payroll app should be able to generate a wide range of reports, including income statements, expense reports, tax reports, and profit and loss statements. These reports provide a comprehensive overview of your financial health, enabling you to make data-driven decisions and optimize your financial strategies.
Bonus Feature – Integration of Attendance and Payroll Modules
For businesses, especially small and medium-sized enterprises (SMEs), integrating attendance and payroll modules can streamline operations and enhance efficiency. With the combo of these two critical functions, businesses can eliminate manual data entry, reduce errors, and improve overall productivity.
When attendance and payroll systems are integrated, employee attendance data is automatically synced with payroll processing. This seamless integration ensures accurate calculation of wages, overtime pay, and other deductions.
Additionally, it helps in tracking employee leaves, sick days, and other absences, which are essential for payroll calculations and compliance.
Furthermore, integrated attendance and payroll systems can provide valuable insights into workforce productivity and labor costs. With analysis of attendance data, businesses can identify trends, track employee performance, and make informed decisions regarding staffing and scheduling.
When considering payroll software, OnPay Payroll is a popular choice for small businesses, often lauded as one of the best payroll software for small business setups. Its integration capabilities, combined with its user-friendly interface and accurate tax calculations, make it a reliable tool for managing attendance and payroll.
Final Thoughts
Today, tech workers, freelancers, and contractors need efficient tools to manage their finances. A robust payroll app can significantly simplify your financial life by automating tasks, streamlining processes, and providing valuable insights.
When choosing a payroll app, prioritize features like time tracking, tax compliance, direct deposit, expense tracking, and reporting. These features will empower you to manage your finances effectively, minimize errors, and maximize your earnings.
Remember, the best payroll app is one that aligns with your specific needs and preferences. Take the time to research, compare, and select a solution that will help you achieve your financial goals. By investing in a reliable payroll app, you’re investing in your future financial success.