The payroll industry is in flux, experts agree. A new report from Accounting Today examined how and spoke with several industry players offering payroll solutions to discover key trends in the space.
The publication spoke with executives at AccountantsWorld, ADP Small Business Service, CYMA Systems, Gusto, MyPayrollHR.com, Paychex, SurePayroll and Thomson Reuters to get the lowdown.
One of the most prominent trends in payroll today is the demand that the solution interact seamlessly with other back-office functions, like inventory, accounts payable and accounts receivable. With the rise in cloud-based accounting, however, this demand is on the rise. Industry players, like Thomson Reuters, pointed to the need to include ACH direct deposit integration between accounts and payroll and to manage multiple payroll solutions, like checks and cards.
There is also a heightened awareness that HR functions, like employee management, time off and expense management, are also closely linked with payroll.
Service providers are also targeting increased visibility, providing online portals where payroll, HR and other back-office functions can be accessed at a single spot.
Compliance, while it has always been a priority and a challenge for employers, can now be handled more efficiently with payroll technologies, the players added.
Automated solutions can streamline recordkeeping and documentation to remain compliant with more recent regulatory changes, like the Affordable Care Act, as well as to safeguard against fraud and cybersecurity threats.
Analysts said that the evolving payroll landscape should be thought of as an opportunity.
“All of the vendors we surveyed provide mobile access to at least some of the functionality of their applications, making it easier to get the client and their employees involved in the payroll process,” the publication noted. “Vendors are also working hard to add new features, and more value, to their applications and offerings.”