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Payroll Software

Payroll software is an all-in-one tool that makes it easy for businesses to pay their employees. Payroll management systems automate and centralize the management of employees' salaries, wages, bonuses, and deductions. Online payroll software makes it easy for small businesses to process payments, apply the correct taxes to salaries, and keep the payroll process in-house. Within a payroll management system, companies can also track time off, vacation accrual, benefits and returement accounts. Some payroll tools are standalone, centralized platforms, but some are integrated with an organization's separate accounting software solution. Payroll software is related to Human Resource software, Time Clock software and Workforce Management software. Browse our catalogue to find the best Payroll software for your organization in Canada.

Featured software

Local products for Canada

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Rippling syncs with all global & domestic HR data so role transitions, benefits changes, PTO, deductions & more are applied to payroll. Learn more about Rippling
Rippling Payroll allows admins to automatically onboard hires in Canada and abroad into payroll, prorate their first check, sync deductions, and more—in under 90 seconds. When an employee’s role, compensation, or benefits change, payroll is automatically updated, so admins never have to manually import employee data into their systems. Rippling also automatically calculates and files all taxes, in accordance with all federal, state, provincial, and local laws. Learn more about Rippling

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Canada Local product
Pay your employees on time, every time with a payroll software built by Canadians, designed for Canadian SMBs. Learn more about Humi
Run payroll with ease. With fully integrated payroll, you can reduce payroll reporting errors, eliminate platform switching and duplicate entry that comes with having a stand-alone payroll vendor. Humi Payroll is built for Canadian businesses, with CRA remittances, automatic T4s and ROEs, and more. And if you don’t want to run payroll yourself, take advantage of Humi’s managed payroll service, where we will run payroll for your business. Learn more about Humi

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Dayforce Payroll, a global HCM platform that transforms the employee experience. For companies with between 500 and 50,000 employees. Learn more about Dayforce HCM
Most organizations maintain separate systems for payroll and time. This forces you to wait until time data has been processed at the very end of a pay period to work with your payroll data. Dayforce empowers you and your payroll team, scalable for 500-50000 emps to access & audit data continuously throughout the pay cycle instead of waiting until the pay period closes. This provides you with more time for reviews and audits, which helps to ensure a more complete and accurate payroll submission. Learn more about Dayforce HCM

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Canada Local product
Simple online payroll software built for small businesses in Canada and the accountants and bookkeepers who support them. Learn more about Wagepoint
Wagepoint is on a mission to simplify payroll and help small business owners get more time in their day. Direct deposit, automatic tax calculations and remittance payments, an online employee portal, year-end reporting, T4s/ROEs, accounting integrations and support from the world’s friendliest team. Under one simple plan, Wagepoint has everything you need to stay compliant with payroll regulations as well as pay your employees and contractors on time, every time. Learn more about Wagepoint

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
BambooHR makes running payroll easy, quick, and stress-free by offering a single source of data. Learn more about BambooHR
BambooHR makes running your payroll easy, quick, and stress-free. By offering a single source of data, comprehensive payroll reporting, superior customer support, and full-service tax filing, you’ll save time and worry on payroll—setting you free to focus on other important initiatives. Learn more about BambooHR

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Dayforce Powerpay modernizes the payroll and HR experience by enabling you to pay and manage your employees quickly and accurately. Learn more about Dayforce Powerpay
Dayforce Powerpay is an easy-to-use payroll and HR software solution for Canadian small businesses. Using Powerpay, you can help reduce risk by cutting through compliance complexity, streamline processes, and take advantage of automatic calculations and remittances. Powerpay includes features such as payroll processing, reporting, self-service, record management, onboarding, time-off requests, managed payroll, HR advisory, integrations, and time and attendance. As a Powerpay customer, you also have access to a world-class, award-winning customer service team that is NPI-trained and ready to help you in real-time Learn more about Dayforce Powerpay

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Papaya’s payroll automation promotes scalability, compliance, accuracy, and security. It delivers unprecedented visibility & control. Learn more about Papaya Global
Papaya’s cloud-based SaaS platform automates global payroll end-to-end – from people to payroll to payments - in over 160 countries. Companies can upgrade their outdated legacy payroll software to Papaya’s groundbreaking platform without ripping and replacing their network of local partners. Papaya can integrate with the companies' network in one payroll cycle. All payroll data is automatically verified though built-in compliance and accuracy engines to ensure a perfect payroll every time. Learn more about Papaya Global

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Canada Local product
SaaS-based platform that enables businesses to manage taxes, audits, payroll, reporting, wage garnishments, trade unions, and more. Learn more about MX-SmartPayer
Easy to manage Canadian payroll, reporting, wage garnishments, trade unions for any company with 50 employees and up. More than a simple deductions calculator, MX-SmartPayer automates the whole payroll process and responds to complex needs, comprising group insurance benefits, vacation pay, a bank of hours, retirement plans, trade unions, wage garnishment, CCQ, CNESST etc.. Learn more about MX-SmartPayer

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Canada Local product
Powerful, flexible, easy-to-use -- UMANA is the most advanced HR and Canadian payroll system you can buy. See it for yourself. Learn more about Umana
Designed for companies with 150+ employees. Powerful, flexible, easy-to-use -- UMANA is the most advanced HR and Canadian payroll system you can buy. Fully integrated HR, Time-and-attendance (including punch clock & time-sheet), and Payroll. Able to handle the hard stuff: complex remuneration rules, employees who wear multiple 'hats', seniority by job, benefit arrears, and much more. Learn more about Umana

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Run payroll in 100+ countries and 200+ currencies with a single platform and eliminate the ongoing admin of local compliance. Learn more about Deel
Run payroll in 100+ countries and 200+ currencies from a single place. Deel’s comprehensive global platform eliminates the ongoing admin of local compliance, taxes, and benefits. With in-house experts across 100+ countries, dedicated CSM’s, visa and PTO support, and more, Deel provides unmatched payroll expertise and service. Plus, with a single point of contact, we eliminate handovers, providing you with faster support and compliance, so your entire global team gets paid quickly and securely. Learn more about Deel

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
QuickBooks Online is a small business accounting software and app that allows you to manage your business anywhere, anytime.
QuickBooks Online is a small business accounting software and app that allows you to manage your business anywhere, anytime. Used by over 7 million customers globally, QuickBooks provides smart tools for your business, yet is easy to use. You can organise your books, manage expenses, send invoices, track inventory, and even run payroll. With QuickBooks Online, you can get organised, save time, and even get paid fast by adding payment features. Best of all, you can try it for free for 30 days. Buy now and save 75% off QuickBooks for the 1st 6 months! Learn more about QuickBooks Online

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Canada Local product
ADP Workforce Now is a human capital management solution for companies with more than 50 employees.
The core capabilities of the solution are human resources management, payroll, benefits, talent management, compliance, time & labor management, analytics & benchmarking. The fully integrated suite is built on a single database, which automates data synchronization across different components and helps users to minimize manual administrative tasks. The platform also integrates with other HR and business applications via the ADP Marketplace and APIs. Learn more about ADP Workforce Now

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Canada Local product
An easy invoicing and accounting solution starting at $7.60/mth (first 6 mths). Join 24 million people who've already used FreshBooks.
FreshBooks Payroll integrates seamlessly with FreshBooks’ accounting, billing, payments, and payroll tools, allowing you to easily oversee your business’s health from one comprehensive platform. Using Gusto’s top-of-the-line technology, FreshBooks Payroll pays your team quickly, helps you stay on top of compliance and tax changes, and gives you an accurate snapshot of your business. Learn more about FreshBooks

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Gusto is the all-in-one HR platform for growing businesses—one place to hire, pay, insure, and manage your hardworking team.
Whether you’re just getting started or scaling your fast-growing business, Gusto is the partner you need to grow and nurture your team. With Gusto, you get modern HR features like payroll, benefits, hiring, management resources, and more — all in one place. Gusto is proud to serve more than 300,000 businesses across the US with a single trusted system, competitive compensation tools, and expert guidance to help you empower your team. Because when your people thrive, your business thrives too. Learn more about Gusto

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Basic Payroll: $17/mo + $4 per employee or contractor. Full Service Payroll with tax filing: $37/mo + $4 per employee or contractor.
For USA business owners with 1-500 employees. Basic Payroll: $17/mo + $4 per employee or contractor. Full Service Payroll with tax filing: $37/mo + $4 per employee or contractor. You run payroll, but let us handle the payroll tax filings. Free 2-day direct deposit, or print paychecks right from your software. Learn more about Patriot Payroll

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Xero is a beautiful online accounting software with a payroll solution designed for small businesses and accountants in any industry.
Xero is an award-winning online accounting software and payroll solution designed for small business owners and accountants, available on any computer or mobile device with an internet connection. Manage your employee payruns, timesheets and pensions all in one place, give staff easy access to enter timesheets, request leave and submit expense claims from their web browser or mobile app, and eliminate the need for manual data entry as payroll information is seamlessly updated into your accounts. Learn more about Xero

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Paycor’s payroll software is an easy-to-use tool that streamlines the process, eliminates compliance issues and ensures accuracy.
Transform the way you process payroll with Paycor. Paycor is intuitive payroll software that gives you time back in your day by automating the process, helping users manage tax compliance and serving as a single source of truth for employee data. With features like OnDemand Pay, AutoRun functionality, employee self-service and powerful reporting tools, law alerts and how-to guides, businesses can pay employees quickly and accurately. Learn more about Paycor

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Canada Local product
Automate key invoicing & bookkeeping tasks and get more time for what you love with Wave’s small business software. Try for free today!
Sick of bookkeeping blues, cash flow woes, or tax time terror? With Wave’s small business software, you can automate the most tedious bookkeeping tasks, create professional invoices, get paid fast online, and simplify tax prep. Unlike other software, Wave offers easy-to-use bookkeeping tools that work together, all in one place, so there’s no need to endlessly google solutions or switch between software. Here’s more on what Wave can do for you: Get more time for what you love: Say bye-bye to manual data-entry by automatically importing and categorizing your bank transactions with our Pro Plan. Be the wiz of your biz: Make smart business decisions with helpful financial reports. Plus, track payments, view customer info, and manage cash flow with our dashboard and mobile app. Beat imposter syndrome: Always look and feel like a pro, now and as you grow. Wave is the only solution committed to offering plans for every business stage. Try Wave for free today! Learn more about Wave

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Special Offer: 6 months free - manage payroll, online or in-house, and save money on time tracking reports, and processing payroll.
Paychex Flex is an all-in-one Payroll & HR solution that you can build on as your business grows or changes. Use it to run payroll and integrate your HR administration, retirement, and insurance management with service the way you want it, and our expert knowledge of the regulations that could affect your business. Get 6 months of free payroll processing & free W2's for a limited time. Click the link to get the details. Learn more about Paychex Flex

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
NetSuite, the world’s #1 cloud ERP, gives you the visibility and control you need to make smart decisions and grow with confidence.
NetSuite is an all-in-one cloud business management solution that helps more than 37,000 organizations operate more effectively by automating core processes and providing real-time visibility into operational and financial performance. With a single, integrated suite of applications for managing accounting, order processing, inventory management, production, and supply chain and warehouse operations, NetSuite gives companies clear visibility of their information and control of their business. Learn more about NetSuite

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Hubstaff has payroll, invoicing, reporting, scheduling, and more. No credit card is required. Start a free trial today!
Improve payment inefficiency with Hubstaff. Manage payroll, reporting, scheduling, and more through one dashboard. Hubstaff integrates with over 30 apps so your business can run more efficiently, including Paypal, Wise, Payoneer, Quickbooks, Gusto, and more. Start automating and sending payments in a snap with Hubstaff. Available for Mac, Windows, Linux, iOS & Android. Learn more about Hubstaff

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Workday Payroll offers the control, flexibility, and transparency you need in order to support your unique organization.
Workday is committed to making payroll more efficient and intelligent with continuous payroll calculations, smart payroll audits, and retro payroll processing. Workday Payroll offers the control, flexibility, and transparency you need in order to support your unique organization. Learn more about Workday HCM

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Canada Local product
7shifts centralizes onboarding, scheduling, time clocking, compliance, tips, and payroll for your restaurant team. Free for 14 days!
7shifts Payroll is designed to address restaurant challenges like tips, labor compliance, union fees, and onboarding. You can sync your 7shifts tip data directly to Payroll for automatic tax deductions and tip credit top-ups. Improve efficiency and accuracy with a solution that replaces the need to export or manually enter information into another non-integrated system. Employees will appreciate having one single place to send paperwork and understand their pay with the 7shifts mobile app. Learn more about 7shifts

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
The smarter way for a small business to manage an hourly team. Time clocks, scheduling, payroll, messaging, and HR all in one.
Homebase makes work easier for 100,000+ small (but mighty) businesses with everything they need to manage and pay an hourly team: employee scheduling, time clocks, payroll, team communication, hiring, onboarding, and compliance. Just don’t call us “Human Capital Management.” We’re tools built for the busiest businesses, so owners and employees can spend less time on paperwork and more time on what matters. Learn more at joinhomebase.com. Learn more about Homebase

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software
Buddy Punch simplifies payroll for your business with an all-in-one solution. We make it easy for any size business to pay your team.
Buddy Punch is intuitive for your employees & easy for you to manage payroll. Employees can clock in using a browser or mobile app. You can view who's working, their GPS position, or even limit where they can punch. Payroll can be run in a few clicks with time automatically imported. We integrate with your accounting software while also offering Excel exports. Advanced features are available too, such as: PTO Accrual Tracking, Punch Rounding, Job Codes, QR Codes, Automatic Breaks, & SSO. Learn more about Buddy Punch

Features

  • 401(k) Tracking
  • Time Tracking Software
  • Check Printing
  • Direct Deposit
  • Self Service Portal
  • Vacation/Leave Tracking
  • W-2 Preparation
  • Wage Garnishment
  • Employee Database
  • Reporting & Statistics
  • Compensation Management Software

Payroll Software Buyers Guide

Introduction

Payroll software is the name given to software solutions that assist businesses across Canada manage the process of paying employees' wages, salaries, and bonuses. Most payroll solutions are intended to automate as many of the associated tasks as possible, and this could include making accurate deductions and actually processing payments so that money arrives into employees' accounts reliably and on time. For businesses, payroll software can improve both efficiency and compliance with tax legislation while freeing up staff to focus on more complicated work tasks.

In addition to automating core tasks, payroll software will typically allow users to track relevant information about individual employees, such as the benefits they are entitled to, the amount of absences and time off they have had, and their holiday entitlement. This not only helps to ensure payroll is accurate but also allows businesses to resolve payment disputes more easily. Companies can also provide employees with limited access to some of their payroll information, which then enables self-service, such as employees opting in and out of optional services.

Through the use of payroll software, Canadian businesses can establish and maintain a culture of transparency. At the same time, use of the software can help to avoid the need to outsource responsibility for many of the related tasks and this, in turn, means personal data is kept in-house. Payroll software can come in the form of standalone packages, which are often able to be integrated with other software solutions, or as part of a suite of HR or accounting applications.

The nature of payroll software and its functionality means it is often compared with or categorized alongside solutions like human resources software, time clock software, and workforce management software. Generally, payroll-focused software solutions can operate alongside these other programs, although all-in-one packages are available, and there may be some significant crossover in terms of the features provided.

While some of the supplementary or bonus features can vary substantially from one solution to the next, most payroll software will have similar core features, even if the quality of their implementation ultimately differs. With this in mind, generally speaking, acquiring payroll software will allow users to:

  • Monitor attendance, track absences, and calculate how much staff should be paid
  • Digitally transfer money from company accounts into employees' personal bank accounts
  • Store important information about employee benefits, salaries, and holiday entitlement
  • Ensure compliance with employment and tax legislation, and create relevant reports

What is payroll software?

Payroll software is designed to help businesses, their managers, and their finance departments to manage all of the core tasks associated with the calculation and payment of staff salaries, wages, and bonuses. At the same time, payroll solutions are intended to help Canadian businesses to keep pertinent information organized and easily accessible so that it can be referred to when needed and the company can deliver greater transparency.

One of the biggest reasons why companies invest in payroll software is to automate many of the tasks associated with payroll. When configured properly, the software can automatically calculate how much each employee should be paid and deposit that money into their account on the specified date, without any need for major involvement from human users. However, on top of this, the software does also provide options for users to take a more hands-on approach when needed, such as accessing relevant data and manually issuing payments.

Generally, payroll software is used by businesses and other organizations that are required to pay staff and keep records of their payments. With that being said, the functions of some payroll software solutions may make them useful for others, such as individuals who are looking to ensure compliance with tax rules. Payroll software often comes as a standalone package, but it may also be sold as part of a larger suite, containing a variety of other business management or finance applications that can be used in combination with each other.

What are the benefits of payroll software?

The benefits of payroll software for Canadian small businesses are primarily focused on the ability to carry out a wide range of different payment and salary-related functions from a single application, eliminating the need to move between multiple software solutions. However, there are a number of specific advantages stemming from the use of this software, and it can be important to evaluate some of these benefits in greater depth. Payroll software allows businesses to:

  • Boost Accuracy and Efficiency: businesses are constantly striving for ways to enhance efficiency throughout their organization, and the use of payroll solutions can contribute significantly to this. The automation on offer means that many of the processes that need to be carried out every month—or at regular intervals—can be achieved without anyone having to manually perform them. On top of this, the software can also be used to automatically calculate what each employee should be paid, based on their base wage or salary, the number of hours they have worked, and any bonuses or deductions that may apply. Not only can this further aid efficiency, but it can also boost accuracy by avoiding some of the human error-related issues that may otherwise arise.
  • Improve business compliance: one of the biggest potential benefits associated with using payroll software is the ability to improve overall business compliance in a number of key areas. The main area where this is likely to be relevant is with regards to tax, and a payroll application can help companies to manage their tax affairs, ensure that all payments are made on time, and serve as an easy-to-use repository for past records and reports. However, the software can also potentially assist businesses in other areas too. For example, regulations like GDPR can be relevant for many employers because companies have obligations to protect the personal data of employees, and payroll software could potentially assist with this by keeping data safe and secure.
  • Provide self-service tools: In many organizations, a significant amount of time and effort goes into responding to requests from employees for access to information related to their pay. This can be especially challenging when the employee needs information related to a past payslip or historic deductions that may have been made. With that being said, a great benefit of payroll applications is the opportunity to provide access to a self-service employee portal. Employees can be provided with limited access to the information contained within the database, such as their own payslips, while also being given options to make adjustments to any opt-in schemes. This then frees up time that otherwise would have been spent on responding to their requests and also means employees have the ability to access their personal details quickly, at any time of the day.
  • Reduce or eliminate outsourcing: many businesses that do not have access to payroll software will instead opt to outsource responsibility for payroll to a third-party organization. Although there are advantages to this outsourcing, there are clear risks too, with one of the biggest being the need to trust an external business with the personal data of staff. By handling payroll in-house, the security risks associated with outsourcing can be avoided, while the costs linked to outsourcing can also either be eliminated entirely or substantially reduced.

What are the features of payroll software?

The features of payroll software tend to be focused around making it easier to manage the process of paying employees accurately while automating as many of the more predictable or repetitive tasks as possible. Although there can be significant variation between different software solutions in terms of the supplementary or additional features they include—as well as in the quality of feature implementation—most products in this category share similar core functionality. The most common and important features of payroll applications are:

  • Payroll management: maintain a payroll database containing all of the crucial information that will inform staff pay and how those payments are actually calculated and processed. Data that will typically be contained within a database of this kind includes, but is not limited to, the names and contact details of each employee, their base salary or wage, their employee benefits, tax information, and information on pay advances or reimbursements. Individual entries within the database can be easily amended, while changes can usually be made to entire sections of the database at once, making it easy to apply, for example, a percentage increase in annual salary for an entire department or a wage increase across the whole company. In addition, many solutions will allow businesses to provide employees with limited access to their own information, as well as controls over some of that information. This could allow a worker to make adjustments to their participation in workplace pension schemes or update personal details.
  • Payroll reporting: track key metrics, store useful information, and use this data to automatically generate reports, which can be sent to employees, senior management, the HR department, or anyone else who may require access. The reports generated through the payroll reporting function of software solutions of this type can usually be tailored so that they meet the needs of each individual business. Using this feature can also help businesses and their financial or legal departments to ensure that they produce all salary statements, benefit reports, and other similar documents in a standard format, making them easier for all parties to understand.
  • Tax compliance: process any transactions related to tax, automatically schedule tax payments that need to be made by a specific date, and store important information that may need to be referred back to, such as relevant legislation, tax records, or receipts. Having access to multiple years' worth of tax-related documents and information in a single, centralized location can be invaluable for ensuring a business is fully compliant and able to fully cooperate with any audit requests that may arise. Furthermore, storing tax records can assist with any queries from employees about tax deductions that have been made from their salary.
  • Calendar management: view and update a business calendar, which can be used to store relevant information so that it is easily accessible and organized in a logical way. The calendar can contain the dates when payments will be made, the dates when employees are off on holiday, important deadlines for filing tax information or making important payroll decisions, and more. In many cases, calendar features can synchronize with other external calendar apps, while alerts can also often be set up so that businesses do not miss an important event.
  • Direct deposit: transfer wages or salaries to employees through the software, using a digital direct deposit function. Through the use of this feature, money can be easily moved from company accounts to the personal bank accounts of each employee. Banking information for every individual employee can be stored and amended as needed. Meanwhile, the actual process of sending payments to workers can be carried out manually or can be scheduled and fully automated. Through this kind of automation, businesses can ensure that their employees are all paid on the same day, at the same time. Each employee is automatically paid what they are owed at the time the payment is made, based on the information contained within the database. In many cases, this feature can also be used to move money to other accounts, such as those belonging to business partners.
  • Attendance tracking: monitor employee attendance over time, track the total number of hours that have been worked and record other important information related to attendance and payroll, including staff absences, unpaid leave, and employee holidays. Attendance tracking can include tracking company-wide statistics, such as the average level of attendance in the business or the average number of hours being worked by employees. However, it also includes the ability to record information on each individual employee. Referring back to this data can be crucial in the event that a pay dispute occurs or in the event that the accuracy of an employee's pay is questioned for any other reason. In some cases, this feature can also be integrated with workforce management software.

Using Capterra's payroll software directory, it is easy for users to filter the available options so that they only see solutions that include the precise features they need. This makes the entire process of acquiring the right solution much easier and allows businesses across Canada to identify the best possible solution for their needs.

What should be considered when purchasing payroll software?

When investing in a software solution for payroll, there are a number of different issues that need to be carefully considered. After all, businesses do not simply need to find the best all-round payroll solution on the market. Instead, they need to find the software package that is most likely to cater for their individual requirements. A good way to work through the main considerations is to ask a series of questions and come up with clear answers to them. Some of the most important questions to think about are explored below:

  • What are the payroll software features? The first and perhaps most significant consideration when selecting a payroll solution is the precise range of features that are on offer. While the core features outlined are likely to be present in many of the best solutions, the very best options sometimes stand out because of some of the extra features available. Even when business requirements are fairly basic or modest, it is important to take the time to find the best possible option based on what is required and what each application can actually offer. It is also crucial for businesses to understand that the best program for their needs could differ from the best solution for another business because the ways in which the application will be used could be vastly different.
  • How much does payroll software cost? When selecting software, businesses need to be clear on the available budget, and this could be a range, from the absolute maximum amount the business can afford to the amount the business would ideally like to keep the expenditure down to if at all possible. However, while the cost of software is always going to be a major consideration, companies need to look at this issue in the right way by thinking about the total cost involved in acquiring the software, setting the software up, training employees to operate it effectively, and continuously using it over time. Some software can be purchased outright, with the buyer gaining full ownership and control over how the software is used, whereas other solutions are sold via a subscription-style approach, where the business pays for access to an ongoing service. An organization will also need to take the time to research whether there are going to be costs involved with storing the associated data. Furthermore, there could be long-term costs, such as those linked with keeping the software up-to-date.
  • What integrations are possible? Next, buyers need to think about how the payroll software will form a part of their wider software strategy and, more specifically, how it will integrate with other solutions. Many applications within this category can be fully integrated with a variety of other programs, including human resources software, calendar software, accountancy software, and workforce management software. Yet, some businesses may have other tools that are critical to their work and which will need to integrate with their chosen payroll program. In a broader sense, it is also vital that companies look into whether options are compatible with their devices and the operating systems they utilize and whether or not some programs or tools may need to be changed.
  • Are there regulatory compliance tools? Organizations and their accounting departments must contend with strict deadlines when it comes to filing tax payments and meeting social security requirements. Not only can failing to meet deadlines or file accurate reports be costly in terms of fines, but the specific requirements can also vary from location to location and are likely to change over time. For this reason, businesses may wish to prioritize the solutions that provide compliance tools. Crucially, however, these tools need to be tailored to local rules and regulations, and there needs to be a facility for updating software if and when legislation changes.
  • How easy is the software to use? The capabilities of an application are a key differentiator, but for many organizations, the user interface can be just as important. The more user-friendly a software package is, the easier it will be for employees to use, and this has knock-on effects, such as keeping investment in training to a minimum, avoiding unnecessary errors, and making the onboarding of new recruits easier. Acquiring user-friendly software requires companies to take the time to fully research the available options, capitalize on free trial offers where they exist, and read reviews and other feedback produced by existing users of the software.
  • Can the software be used remotely? Finally, it is more important than ever for software packages to be accessible remotely. The general trend for businesses to have more of their workforce operating remotely was visible over recent years, but was boosted by the COVID-19 pandemic and subsequent restrictions on workplace gatherings. In the aftermath of the initial crisis, many companies continued to embrace either remote or hybrid work models, but this shift has required real planning. In fact, Capterra research from 2021 shows that 52 percent of Canadian employees used digital tools during the pandemic to manage their workload. With businesses keen to avoid such upheaval and unplanned expenditure in the future, many are prioritizing software solutions that can easily be utilized remotely as well as on-site as needs shift.

The most relevant payroll-related software trends for small businesses are also a crucial topic to think about before making a final purchasing decision. Businesses need to try to invest in software that will remain useful for the foreseeable future, either because it has been intentionally designed with an awareness of payroll trends and the current trajectory of business needs or because the software is regularly updated to accommodate emerging trends. Some of the specific trends related to payroll solutions that companies and their decision-makers should be aware of include:

  • The growth of cloud-based software: One of the single biggest trends related to payroll applications has been the rapid growth in both the development and adoption of cloud-based software solutions. Software of this kind is generally paid for through an ongoing subscription, with a third-party service provider taking control of handling data, keeping the software up-to-date, and ensuring the software is continually functional and available. Arguably the single biggest advantage of the cloud-based, Software as a Service (SaaS) approach is the ability for multiple users to access software at the same time, regardless of whether they are working on-site and remotely, and share any amendments made to data instantly with the entire company. Cloud-based software also offers advantages in terms of accessibility because many of these options are browser-based, meaning they can be accessed on a huge range of internet-enabled devices, often without the need to install software.
  • Increased reliance on artificial intelligence: Artificial intelligence and machine learning provide businesses with the ability to carry out seemingly intelligent actions without the need for human intervention, and this can greatly aid efficiency. Within payroll-related applications, there is a growing demand for AI-powered support features. For instance, a chatbot could potentially answer many of the most common questions employees have about their payslips or about company pension schemes. This then saves time that an employee would otherwise have to spend responding to these queries, and it also makes this support available around the clock.
  • Heightened demands for integration: Finally, companies are dealing with more data than ever before, and this can easily lead to confusion and irregularities if sensible measures are not taken to keep data consistent across the organization. The value of integration is only growing, with businesses wanting to be able to easily share data between HR, accounting and workforce management solutions. Where integration of this kind is possible, it can help companies to avoid unnecessary data duplication. Furthermore, data that is updated in one application is then applied across the board, which can be especially useful for cross-departmental collaboration.

Sources:

The features highlighted were identified based on their relevance and the percentage of products in Capterra's directory that offer them. The following sources were used for this document:

  1. GDPR after Brexit – what’s next for SMEs? - Capterra UK Blog (Date accessed: Wednesday, January 5, 2022)

  2. Productivity when working from home: 7 insights from Canadian employees - Capterra Canada Blog (Date accessed: Tuesday, February 15, 2022)