Online Payroll Key Terms

Some basic key terms for online payroll solutions for business

As so much of today's business gets done with a vast variety of high-tech tools,  companies both large and small are finding that they benefit from bringing their paper payroll solutions online. New online payroll options eliminate a lot of work for HR managers and contribute to a more efficient business. Knowing some of the basic terms for online payroll helps business decision-makers chart the course for getting the best online payroll options in house.

 

Hourly rate

 

The vast majority of workers at most conventional businesses are wage earners. Their hourly rate determines what their pay period total will be. Online payroll does the hard work of figuring all of the hours at various hourly rates to come up with a total.

Electronic filing features

 

The ability to use online payroll to file state taxes online is a very desirable feature. This saves a business much time and adds to the functionality of the payroll solution.

Deferred compensation

 

This term is used to describe compensation that is held for a time period in the future. It usually applies most to contributions to retirement plans for employees.

Direct deposit

 

This is another hugely popular feature of online payroll. A fully automated payroll system allows employers to deposit wages or other compensation into an employee's bank account electronically. The old system of mailing checks is more costly and time intensive. Direct deposit, for many companies, is the way of the future, and online payroll can help forward-thinking businesses get there.

Electronic payslips

 

Along with direct deposit, the financial reporting of the employee's earnings can also sometimes be done online. This practice, though, is liable to certain federal laws. Online payroll can facilitate e-statements, but employers should check about any liabilities first.

Online payroll integration

 

For many companies, the best options for online payroll are those that can be integrated with other accounting software to allow for a holistic company IT system for payroll, A/R, A/P and all that goes on financially.


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