With so many companies opting to implement automated payroll systems rather than manually-managed ones, you might find yourself considering payroll software for your own company. Of course, no major decisions should ever be made without first doing the proper research, so in this short article, we aim to provide you with a simple, five-point overview of why using payroll processing software is a smart move. Ready to learn why? Keep reading!
It’s the Easiest Way to Save Yourself Time
The biggest obstacle payroll presents to SMBs isn’t usually in the actual payroll itself but in the amount of time required to perform the necessary calculations. When managing payroll using manual processes, you’re limited not only by how fast time & attendance data can be collected but also by how fast your payroll team can calculate each paycheck using this information. As your business grows, this process becomes more complex, increasing payroll expenses as it requires additional employees to manage. Fortunately, time isn’t an obstacle for companies that choose to implement cloud-based payroll management services! The software performs all of the necessary calculations (including gross income, withholdings, taxes, deductions, and net income) much faster than a person can, leaving in-house specialists with time to attend to other matters at hand.
There’s No Risk of Errors
Another problem with manual payroll management is the increased likelihood of errors. Even the most well-trained payroll specialist can make mistakes from time to time; unfortunately, these tiny mistakes can mean big fines for your business. If you’re using software, rather than being calculated by staff, payroll calculations will be handled by the payroll system. Unlike people, the system is not prone to making errors so you’ll never have to worry about incorrect calculations in your payroll!
Maintaining Compliance Isn’t An Issue
Whether you’re talking about FLSA requirements or individual income tax laws, maintaining complete compliance with the law is a necessity for your business. Unfortunately, these requirements are subject to change at any time. Simply being unaware of the law won’t be enough to spare your business the potential fines your company may be subjected to. This means that your payroll specialists will have to keep up-to-date on the relevant laws in every jurisdiction your employees work in (and the problem worsens if you employ remote workers!). Rather than hoping your specialists are informed on the most recent compliance requirements, an easier alternative is to trust your payroll to dedicated software solutions. Payroll & HR software systems like UZIO use centralized databases to perform payroll calculations. Complete with the most up-to-date laws, requirements, and tax rates, these databases allow them to produce an accurate, fully compliant payroll each and every time.
Payroll is Always Distributed On Time
Does your company compensate employees via direct deposit? If so, you probably are aware that manually processing these payments can be a time-consuming process in itself! Fortunately, this can also be automated using payroll software. Once an employee’s banking information has been entered into the system, the software will automatically distribute payroll funds to the employee’s bank account come payday.
You Won’t Need to Maintain a Local System
Some businesses have moved beyond manual payroll processing, but haven’t made the transition to the cloud just yet. Local payroll systems, while more effective than manual payroll processing, still lack the flexibility that a cloud-based payroll system can provide since payroll information can only be accessed from company computers inside the office. This means that employees will still have to visit the payroll department if they want to review past or current pay stubs. With a cloud-based system, employees can check their pay stubs from any device with an internet connection, and since the system is stored on the cloud, it’s virtually maintenance-free! This means payroll workers can spend all of their time managing payroll responsibilities without needing to worry about their systems acting up.
Not Quite Convinced?
Although the list above has gone over some of the best parts about switching to a cloud-based payroll system, there are still many other benefits cloud-based payroll management software can offer to your organization.