Ever since Namely launched their Namely Payroll service, HR managers throughout the world have been talking about it.
Some hail it as the ultimate antidote to the headache that the process of paying employees can present.
Others, on the contrary, are less convinced.
Whatever the case, Namely has managed to remain relevant despite the ebbs and flows of the digital market.
For that reason, its name tends to pop up whenever employers are discussing compensation management.
Is it worth it? Will Namely work for me? Is the service that they offer even reliable?
All of these are valid questions that you deserve answers to.
That’s why we’ll be answering all of your questions and more right in this blog post.
Let’s get started.
Namely Payroll: Features Overview
Namely Payroll is a digital HR tool that serves to simplify how a company pays out its staff.
As of 2019, Namely Payroll remains one of the brand’s latest releases. It compliments previous solutions released by the brand that also cater to human resource managers, like their HR Managed Services & HR Outsourcing.
There are four main elements which enable Namely Payroll to make paydays a lot less hectic. They are as follows:
- Handles Tax Filing & Compliance – Namely Payroll takes full control of your tax filing so that you don’t have to stress about compliance protocol.
The tool calculates local, state, and federal taxes and deposits them on your behalf. What’s more, the platform also creates tax documents such as 1099s and W-2s.
- Complete Payroll System – The tool has the added benefit of syncing with whatever HR solution that you have integrated into your company. Thanks to this, enrolling new staff members is easy as the platform automatically draws the data it needs from your HR solution.
- Tracks Attendance and Hours Logged – Namely Payroll features a time and attendance recorder that allows you to create digital time sheets. But that’s not all. With it, you can also keep a log of labour hours as well as the costs that correspond to that labor. That way, you get to keep track of every aspect of your workforce so that you can reduce the margins for error when you pay out your staff.
- Generates User-Friendly Payroll Reports – Your HR department receives detailed payroll reports that are easy to understand and accurate. These reports include information such as your employees’ information as well as the cost that each one presents to the company.
Namely Payroll: Other Areas Where The Tool Shines
Apart from the features mentioned above, here are some additional areas where Namely Payroll excels:
- Automated Deductions on Employee Benefits – Payroll synchronizes with your HR solution to factor the monetary add-ons or subtractions given to employees into payroll reports.
- Consistent Reports At The End Of The Year – Namely Payroll provides complete reports at the end of the year so you can keep a record for HR purposes.
- Employee Accessibility – Additionally, employees can access their paycheck history at a moment’s notice.
- Direct Salary Deposit – The platform allows salary payments to hit an employee’s bank account directly.
Not only does this save time but it also saves paper as you wouldn’t be issuing cheques.
- Mobile-Friendly App – Namely Payroll makes it possible for employees to check their profiles via the platform’s mobile app. Furthermore, employers and HR managers can also process payrolls from a mobile device.
- Payroll Calculator – Once you’ve input the bonuses and variables that affect an employee’s salary, the platform calculates everything for you.
This last point is important especially for employers who offer flexible benefit plans to their staff.
Usually, with these types of plans, an employee selects one or more benefits. Depending on the benefits chosen, there may be a fluctuation in the salary he or she receives.
Luckily, the platform can handle all those variations. Let’s take a look at a typical example: student loan repayment benefits.
To give you an idea of how you can integrate Namely Payroll with another software, here’s a brief look at how it works with a student loan repayment company called FutureFuel.
Combining Namely Payroll With FutureFuel
For those who don’t know, FutureFuel is a company that helps employees with student loans get rid of their debt fast.
Employers and business leaders partner with them so that staff who is afflicted by student loans can crush their debt once and for all.
The CEO and founder of FutureFuel, Laurel Taylor, hopes to make a huge dent in the $1.5 trillion student loan crisis that’s affecting the US right now. In fact, by the end of 2021, the company should have cleared around $30 billion in student debt.
The cool thing about FutureFuel is that employers can make contributions to student loan payments. That way, employees don’t have to face the challenge of paying back their loans all alone.
It also has the benefit of making your company look more appealing in the eyes of prospective staff. This, in turn, boosts your employee retention and contributes to your workers’ happiness on the job.
If you have already partnered with FutureFuel, getting Namely Payroll will enable you to organize, record, and distribute your compensation package without any hassle.
The software tool calibrates salaries and student loan payments made by both you and your employee. Once that is done, it creates a digital ledger which you can keep as a record of your payments.
Therefore, Namely Payroll lets you enjoy the benefits of a FutureFuel partnership while still keeping track of your compensation package.
Namely Payroll: Where It Falls Short
Just like all other software, Namely Payroll isn’t perfect.
Users have griped about a few things relating to the platform. Let’s take a look at them:
No Auto Pro-ration Calculator – This is one of the biggest complaints about the platform. If your organization hires someone once the beginning of a payment period has passed, you have to manually pro-rate that employee’s earnings for that period. Because this is not automated, there is more room for error.
No Auto Retro Pay Calculator – Let’s say you give one of your employees a raise. However, you couldn’t issue the raise on the date that it was meant for. Consequently, you have to include that bonus in a new payout. Unfortunately, Namely Payroll cannot process that payment. In such a case, you would have to manually enter the difference in earnings, something which, once again, increases the space for human error.
Namely Payroll: Pricing
Namely hasn’t listed the cost of their Payroll service on their website. Therefore, I have to go based on reviews that I have read from users who have tried their platform.
According to what I’ve read, Namely Payroll employs a per-employee pricing system. In other words, the cost that you bear is dependent on the number of employees that are registered under their service.
After comparing different prices, I surmise that Namely Payroll costs businesses anywhere from between $15 to $30 per employee. The more employees you have registered, the cheaper you pay for each one.
In addition to the monthly payment, with Namely Payroll, you also need to make a one-time implementation fee that costs somewhere in the bracket of $50-$80.
While that is an expensive investment, I believe that if you can make it, you should.
Doing so helps to make a positive impact on your work culture. Reducing the number of payroll errors reduces your employee turnover and doesn’t hurt your employee engagement.
According to a report from the Work Institute, employee turnover constitutes as much as 33% of an employee’s salary.
Therefore, while it may seem like an unnecessary expense, in the long run, you’d be surprised to know how much money you’d be saving by keeping your staff happy.
Namely Payroll – Final Thoughts
In short, I believe that Namely Payroll is an HR tool that can bring tremendous benefit to how you organize payday.
It’s multifunctional nature enables you to cover just about every facet of compensation management that is out there.
While I do agree that it isn’t a cheap service, you do reduce the chances of facing hidden charges from factors such as employee turnovers.
Besides, it compliments other companies that you partner with under a benefit plan. That way, you and your management team get to focus your attention on other areas of the business.