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Payroll Software RFI/RFP Template

Payroll Software Criteria


Below is a list of the top 15 essential criterion for good payroll software. If you are about to select new payroll software and need to specify a full list of requirements, then visit the Payroll Software RFI/RFP Template which lists thousands of criteria.


Good payroll software should:

1.  Have high functionality

2.  Have the functions included within the software, rather than as add-ons

3.  Perform the payroll functions:

  • required by your organisation
  • the vendor claims the payroll software performs
  • required by statute / regulatory authorities

4.  Provide the following payroll and system wide functions (depending upon your requirements)

  • Core payroll software functions:
    • manage multiple payroll types, frequencies and multiple companies
    • hold employee details and basic employment information
    • employee pay and allowances
    • public sector grades, reviews and uplifts, pay and pay rates
    • employee benefits and benefits administration
    • holiday pay schemes
    • statutory maternity, adoption and paternity payments
    • occupational maternity and sick pay
    • construction industry scheme (CIS - UK)
    • statutory taxation / payroll deductions
    • pension plan contributions deductions
    • voluntary payroll deductions
    • integration with general ledger / job costing
    • configurable payroll calculations and processing
    • tax authority integration
    • RTI (real time information) UK
    • employee payments, by multiple methods, in multiple currencies
    • produce statutory reports and end of year returns
    • electronic or printed pay slips
  • Payroll bureau / outsourcing:
    • flexible payroll bureau services
    • payroll bureau support services and additional outsourcing services
    • flexible service contracts
    • global / expatriate payroll management
    • user definable payroll data input, processing and reports
    • pay slips / e-payslips
    • support and manage payroll year end processing and statutory / management requirements
  • Self service:
    • Employee self service (ESS)
    • Management self service (MSS)
  • Employee expenses:
    • flexible system configuration
    • expenses processing
    • expenses payments / reimbursements to employees
    • e-expenses
    • corporate credit cards / payment cards
    • e-travel
  • P11D (UK only)
    • P11D automation
    • data import, adjustments and calculations
    • information issued to employees / submitted HMRC
  • System wide functionality:
    • workflow
    • alerts
    • social media
    • employee portal
    • legislative, regulatory and taxation compliance
    • enquiry and reporting


5.  Be a fully 'open system'

6.  Be written in a widely used programming language

7.  Be fully integrated, or easily / seamlessly integrated with other relevant systems (if separate modules)

8.  Provide links to other systems eg HR, time recording, accounting, job costing and desktop software

9.  Have the scope to grow with the business

10. Be flexible to accommodate changing user or business requirements

11. Support good payroll practice


Good payroll software management information includes:

12. Full online enquiry and drill down / around capability

13. Multiple search and select facilities

14. A suite of ready-to-use standard reports and documentation (eg payslips) that can be tailored to the user requirements, saved and then reused when required

15. Reporting across modules


For additional ‘key software criteria’ visit: Software efficiency criteria / Vendor criteria or for the latest payroll software trends visit: payroll software trends

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