Payroll processing is a routine but important aspect of business management. Payroll processes date back as far as the 14th century. To efficiently handle your company’s payroll requirements, you need to understand the demands and invest in the best payroll software available for your needs and budget.
Payroll developed because business owners understood that they needed to track all finances and not just sales and purchases. However, monitoring finances is a tedious and time-intensive task for any company. Payroll software makes the work easier by facilitating payroll automation. Now, you don’t have to outsource the process to a costly third-party provider but can do it in-house.
Functions of Payroll Software
Payroll software for small businesses is a big help to HR and accounting units as it can perform a lot of the lifting in terms of payroll processing. It can securely store employee information, keep you updated on the latest tax laws, and more. All-in-one HRIS solutions integrate HR, payroll, benefits, and workers’ compensation to help HR professionals manage a variety of activities.
Manual payroll management can take up a lot of time and is prone to human errors. A complete payroll solution can help by automating the task and saving HR staff a lot of time and effort. To check if your payroll software is working effectively for your business, analyze if it offers the following features and benefits.
The software’s payroll services and tools should help you with efficient payroll management. It should automatically calculate salaries on a set schedule. You need to set up this capability manually. After that, the platform will automatically run the payment process and you only need to do occasional tweaks.
Tax regulations are confusing and dull. You can easily misunderstand federal and state tax laws and social security rules. Plus, these laws change frequently. Payroll software is a big help in this case as it automatically updates with changes in tax laws, making legal reading simpler for you. In addition, the payroll system can even fill out tax forms and remind you about filing deadlines – enabling you to avoid extensions for filing or paying fines for missing deadlines.
Added Financial Management
Payroll software can perform bonuses, benefits, and expense management. It can calculate and track all employee costs. It thus allows you to offer perks like paid holidays on birthdays and mileage reimbursement to your workforce. The system permits employees to control their benefits. It also makes it easier for users to account for and monitor financial data.
Another useful feature of payroll software is its ability to generate summaries and reports such as benefits reports and salary statements. It presents employee self-service tools that permit personnel to print forms such as their payslips and W-2s. Payroll software also makes record keeping easier. It permits you to securely store and quickly find staff records. In this way, it eliminates worries about misplaced files and ensures all your company and employee data is kept confidential and accounted for – in a single convenient and safe platform.
Benefits of Payroll Software
Your investment in payroll software is worth it if it delivers the following advantages:
Using Excel to manage payroll means manual tracking of information like hours worked by each employee, pay rates, sick hours, over time, and others. Your payroll executives can easily make mistakes like a misplaced decimal or typo which can prove costly. Plus, your accounting and HR departments would need to spend a lot of time correcting these errors. Payroll software can make payroll processing more accurate and error-free and thus save a lot of money for your firm.
Payroll software can enable your organization to process payroll correctly and pay your staff on time. An industry study shows that 49% of workers in the U.S. quit their jobs if they experience two paycheck mistakes. With payroll software, you can avoid inaccurate paychecks and other expensive payroll errors. Your company would be able to deliver precise paychecks on schedule which is sure to make your employees satisfied and happy.