There are various applications on the market today, but how do you decide which one is right for the business you conduct? Let's start by having a look at the main items a good payroll software application must possess.

1. create and manage detailed company details

2. create and manage detailed employee details

3. can be run during a specific date range (normally weekly, fortnightly and monthly)

4. processing of individual departments or all departments

5. accountability of all emoluments and tax paid for each employee and department

6. standard tax reports as required by the local authorities

7. flexibility in allowing bonuses, overtime and special end-of-period additions and deductions

Needless to say, a good payroll program holds many features which reduce paper work needed to control your employees' remuneration. Having said that, some required paperwork like pay vouchers, checks, company reports and tax reports are a must for any payroll software.

But what is the main feature a payroll application must excel in? Without any doubt this has to be security. Payroll software databases hold one the most sensitive information a software application can hold. By many, the salary they get is considered as the most well kept secret in their lives. That information is probably held in a computer somewhere forming part of a payroll package. As such, confidentiality of that information must be stressed heavily and checked thoroughly when one is enquiring on payroll software.

But most payroll software applications are not stand alone modules. Many come integrated with other modules like the purchases ledger, general ledger and/or job costing module. If you have a production business, having your payroll software integrated with your job costing module is, to say the least, a must. This will ensure your costing is truly reflecting all the costs your business is incurring, and the payment of your employees, including taxes, is definitely one of them.

As like all tailor made software, a payroll software application would normally require user training before one can reap the benefits from it. Payroll software is quite a complex piece of software and the fact that people are employed in human resources departments just to be responsible for the payroll aspect of the company is proof of this. This is true, although, the payroll software used should also be straight forward for clerks who work in a payroll environment. It should be intuitive and present all tasks in a simple and clear format, with help available on the spot.

Since many payroll software exist today, it is very hard to determine which one is right for your business. The decision needs to rely on the structure of your business, number of employees, different work times and shifts, plus other factors. Based on this, a standard payroll software might do, or maybe not. What's important is that before committing to one, and probably also, before being trained on one, all the features (and non-features) of the package you choose have been made clear and proved to function correctly and as desired.