Payroll Management Software: Where It Started and Where It’s Now! 

Employees work for a salary while businesses employ them to ensure the smooth running of their operations. Just as it is important for an employer to keep their work on point, so is it important for the employees to get paid on time and correctly. Payroll processing makes this happen. 

Conventional payroll processing was prone to lots of errors. Today, payroll management software addresses most of the challenges that existed before they came. This short blog takes you through the evolution of payroll software.

Evolution of payroll processing

It is quite interesting to see how payroll processing has evolved. From the manual processing that took weeks to complete to today’s instant processing through payroll management software which automates everything with minimal human intervention.

It was in the late 20th century that the first computerized payroll management came into existence. However, only a few of the world’s largest companies back then could afford it. The reason – it was too expensive and required specially trained staff.

By the start of the 21st century, desktop computers became widespread and desktop-based payroll software, for instance, QuickBooks, Sage, etc. began to be the primary choices for larger businesses. However, these solutions were not feasible for smaller businesses. While these solutions made payroll processing much easier compared to how they were done manually, they still demanded experienced professionals to handle it. This led to the emergence of several payroll processing companies.

At a payroll processing firm, they run payroll on behalf of other companies. They have dedicated staff to handle different tasks like tax calculation, compliance monitoring etc. and complete the pay-out via their sophisticated payroll management software.

Cloud-based payroll management software

One of the most ground-breaking changes in the payroll process occurred with the coming of cloud-based payroll management software. These solutions rule out major challenges that conventional desktop-based payroll software posed, such as limited accessibility, extensive system requirements, deeper level computer and software knowledge etc.

A cloud-based payroll software can operate with minimal system requirements. If you have a computer with an updated web browser and an uninterrupted internet connection, you can use it. Moreover, the accessibility is unlimited. It can be accessed from anywhere if the user has the login credentials. The mobile app provided by cloud payroll software makes the process even more convenient.

Latest developments in payroll management software

From being a standalone system, payroll management software comes integrated with workforce management solutions these days. This makes things even easier for organizations because payroll processing needs to rely on a variety of employee data such as attendance, leave, overtime, etc.

When you have the payroll system integrated into your HR software, you don’t have to manually transfer the data. The data syncs in the background. This brings automation to its maximum potential.

Payroll software for small business

Small and medium enterprises contribute a significant percentage to the economy. Since their payroll requirements are limited, purchasing a full-scale payroll management software is not a viable option for them. Specially designed payroll software for small businesses provides an affordable and efficient solution to manage payroll processes for such enterprises.

In summary, payroll processing has come a long way, making it easier and more accurate for businesses to pay their employees. For smaller businesses, finding the right payroll management software can be tricky. That's where Mewurk comes in. We offer simple and affordable payroll software designed specifically for small and medium-sized businesses.