What Is Hourly Payroll Software?
Hourly payroll software is essential for businesses today. It simplifies payroll processing, saves time, and reduces errors, allowing businesses to focus on important tasks and building relationships. This software helps businesses manage payroll specifically for hourly workers. It simplifies tasks such as calculating wages, deductions, and issuing payments, while handling payroll tax withholdings and other complex payroll functions.
Importance Of Payroll Software For Hourly Employees
Payroll software for hourly employees is important in today's fast-paced world. It helps ensure you follow the rules, saves you time, and keeps your workers satisfied. This tool solves a big problem that many organizations have: handling payroll without mistakes. With a payroll service, you can quickly and accurately calculate the pay for your hourly workers.
How Is Payroll For Hourly Employees Calculated?
Calculating payroll for hourly employees can be tricky. First, track the hours worked using timesheets, punch clocks, or time tracking software. Be sure to include any overtime hours. To find gross pay, multiply the hourly rate by the regular hours. For overtime, multiply the overtime rate by the overtime hours. Then add both amounts to get the total pay. Here's how to do it:
Gross pay = (Hourly rate × Regular hours) + (Overtime rate × Overtime hours)
Next, consider bonuses, tips, tax withholdings, Medicare taxes, and other deductions to find net pay. Since this process may feel too complicated, it's better to use payroll software for help.
Features Of Hourly Payroll Software
By now, you know that hourly payroll software is important for organizations. Here are some key features that make payroll easier to manage:
- Salary And Tax Calculation
The main feature calculates salaries and all taxes, including local, federal, and state taxes, when you run payroll. - Compliance
The software helps stay up to date with labor and tax laws automatically, avoiding manual updates. - Time Tracking
Another important feature is tracking employee hours and attendance. It includes manager-approved overtime and clock-out reminders. If the software has GPS and geofencing, that's an extra bonus. - Forms
The software provides essential forms like W-2, Form 1099, and Form 941, which make filing taxes simple. - Employee Management
Some software allows for direct deposits, onboarding new employees, and providing digital pay stubs, ensuring better transparency.
Benefits Of Hourly Payroll Software
Here are some benefits of hourly payroll software:
- Accurate Payroll Generation
This software is accurate, which is its main benefit. It tracks working hours, overtime, and attendance and generates accurate paychecks based on this information. - Less Paperwork
It cuts down on paperwork, allowing HR to easily manage leaves and schedules. With hourly payroll software, all your workforce data is stored in one place. - Better Compliance
The tool helps you follow labor laws, overtime rules, and other regulations specific to your state. This way, you can avoid fines and penalties.
Cons Of Hourly Payroll Software
Like any good tool, hourly payroll software has some downsides. Let's look at them:
- Cost
Buying payroll software can be a big expense. You might need special hardware, licenses, and regular maintenance. This can be a lot for organizations on a tight budget. - System Crashes
Software can crash. The real issue happens if there's no backup or quick fix in place. This can cause delays and lead to compliance problems.
Best Payroll Software For Hourly Employees
Here are the top five payroll software options for hourly employees that make unlimited payroll easy.
1. QuickBooks Online
Cloud-based accounting software specifically made for small businesses.
Features
- Accounting features include bill management, expense tracking, generating invoices, online payments, and more.
- It simplifies tax management and prepares reports for easy tax filings.
- Generates various financial reports to gain insights into your business performance.
Pricing
Starts from $7.50.
Pros
- Easy to use and access.
- Integrates seamlessly with other systems.
- Affordable.
- Provides reliable customer support.
Cons
- It lacks important features beyond accounting.
- Doesn't offer inventory support.
- This can sometimes cause the system to crash.
- Specifically built for small businesses.
2. APS Payroll
A full-service payroll and HR platform that makes workforce management easy.
Features
- The tool's administrative features include direct paycheck deposits, an automated payroll process, time and attendance tracking, and employee benefits management.
- It also offers easy tax calculation, filing, and automatic tax payment to ensure compliance.
- Streamlines onboarding, creates easy-to-understand reports, and offers interactive employee performance management.
Pricing
Starts from $50.
Pros
- It is easy to use.
- Offers payroll tracking irrespective of the employee's location.
- Automates various workflows.
Cons
- Users report that it is expensive.
- Offers limited customization options and restricts reporting.
- Has an unstable mobile application.
3. Corporate Payroll Services
The platform simplifies payroll processing, tax filing, and reporting for small and medium-sized businesses.
Features
- Processes payroll for small and medium-sized businesses.
- Offers timely payroll tax reporting and filing of federal, state, and local taxes.
- Has online access and management for ease of use.
- It comes with an employee self-service option and a mobile application.
Pricing
Starts from $25.
Pros
- The automation feature helps organizations save time.
- It is easy to use.
- Offers accurate recordkeeping.
Cons
- Limited customization options and features.
- The mobile application may sometimes crash.
- Customer complaints are resolved slowly.
4. Everee
Everee offers hassle-free payroll processing through an easy-to-use and affordable platform.
Features
- Has a time tracking feature to track the hours worked.
- Automated tax calculation and filing feature to ensure optimal compliance.
- Supports payroll management in multiple states.
- Employee self-service for better control.
Pricing
Starts from $15.
Pros
- Instant payroll processing.
- Automated tax calculation.
- Simple hours calculation feature.
Cons
- Has limited customization and third-party tool integration.
- The mobile application has limited functionalities.
- It may not be suitable for complex payroll.
5. Juggl
Juggl offers payroll and workforce management services suitable for mid-sized growing companies.
Features
- It automates the calculation of salaries and distribution of pay stubs.
- It tracks the number of hours an employee works and their attendance, and also manages employee benefits.
- It simplifies contract management and employee agreements.
- Track project expenses, cost per employee, and much more.
Pricing
Starts from $12 per person per month.
Pros
- It simplifies payroll management.
- Has a user-friendly and intuitive interface.
- Offers comprehensive HR and payroll features.
Cons
- It lacks flexibility.
- Needs more resource management features.
Conclusion
Hourly payroll software offers many benefits for organizations of all sizes. To enjoy these benefits, choose a platform that fits your needs and is within your budget. Our payroll software directory is the perfect resource to guide you through the process and offer you a comprehensive view of all the available solutions based on your needs.
