Admit it or not, one of the best parts about any employee’s job is getting their monthly wages. After all, salary is one factor that motivates employees to complete and accomplish their tasks efficiently.
It’s crucial for any business owner, big or small, to ensure that their employees receive the hard-earned money they deserve after a job well done. However, making mistakes and creating lapses during payroll processing is inevitable, given the dizzying amount of money you have to handle manually—and nobody wants that.
Hence, payroll automation is here to help. An automated payroll system allows you to pay your employees with no sweat. Let’s delve into the depths of automated payroll systems and learn what they’re all about.
The World of Automated Payroll Systems
Before we get into the nitty-gritty details of payroll automation, it’s crucial to understand the processes behind payroll. As you might have already guessed, payroll involves accurately giving your employees their monthly salaries on time.
Besides calculating the amount of money they will receive, you will also have to track the hours they’ve worked and how you will distribute their wages in an organized manner.
Additionally, you have to consider several other factors, such as payroll taxes, sick and vacation leaves, holiday and overtime pay, bonuses, reimbursements, and other employee benefits.
To any business owner without an established finance team, these tasks may become too confusing and daunting to handle on their own. Learning how to do these accounting tasks accurately also takes much time and effort.
Fortunately, you won’t have to stress too much over perfecting these tiresome payroll processes by automating payroll because an organized system will do it for you. A computerized payroll system will simplify and speed up how you calculate and distribute your employee’s paychecks.
An automated system can do the following processes:
- Precise payment calculations and deductions
- Speedy wage distribution
- Employee time tracking
- Enhanced and organized recording of transactions
- Proper tax filing and management
You might still be skeptical about streamlining your payroll tasks to organized software. To ease any of your worries, we’ve gathered a few reasons why automated payroll can transform your business for the better.
Saves Your Time
Time is precious and should not be wasted. When you’re operating and handling a business, even the tiniest moments count. Hence, it’s only logical that you spend your minutes wisely.
You would have to spend hours upon hours doing manual data entry for payroll when you could be doing other more important business matters. An automated payroll system allows you to allocate more of your time to other tasks.
Reduces Payroll Errors
Even the slightest mistake can cause grave consequences when calculating employee wages since payroll is primarily about giving employees the money they deserve. The payroll team must ensure accurate and timely wage distribution.
However, with the dizzying amount of accounting and recordkeeping tasks involved in payroll, some people will inevitably make mistakes and unintentionally issue inaccurate payments to employees. These errors can cause financial issues for both the employee and the employer and lead to severe legal penalties.
Precise and accurate payment calculations are guaranteed with a computerized payroll system. The software can correctly and swiftly compute and adjust an employee’s pay while taking possible wage deductions, raises, bonuses, and more into account.
Files Taxes Efficiently
One of the most confusing and headache-inducing parts of payroll processing is the deduction and filing of taxes. Getting this part right is crucial as it involves local laws and regulations. An error may likely result in legal trouble for your business.
With automated payroll systems, you don’t have to calculate all of your employee’s gross pay and take out tax deductions on your own. You can let the software accurately figure out and navigate the complicated world of tax filing.
Provides Transparency to Employees
Using automated payroll software can also benefit your employees. Most automated systems allow employees to access their paychecks easily to view possible changes in their regular wages.
They will also be able to update and input their payroll information easily using automated systems. Because of this feature, the system can smoothly adjust employee pay stubs according to these changes in real time.
Improves Employer-Employee Relations
Most importantly, paying employees with an automated system can indirectly improve your relationship with them. As mentioned, receiving befitting compensation for their work is one of the primary ways to motivate employees. With computerized payroll systems, employees are guaranteed accurate and timely pay.
Moreover, with the transparency that automated systems provide, you can improve and develop trust and confidence in your employees. Your employees will feel secure knowing that you will pay them what they're due.
Automating Payroll 101
Manually handling your payroll may seem like a breeze at first, but as your business grows, it will become more complicated and time-consuming. The sooner you implement payroll automation, the more time and resources you’ll save.
Hopefully, the benefits mentioned above are enough to convince you to start automating your payroll. Naturally, your next course of action is to learn how to switch from manual to automated payroll. You can either use payroll automation software or hire a payroll service to assist you.
Using Payroll Automation Software
You can take matters into your own hands by searching for a payroll automation software that suits your business. Choosing a payroll software will primarily depend on the size of your company, your business needs, and other related factors.
Besides the payroll software cost, here are some features you must consider:
- Has time tracking features
- Provides comprehensive reporting
- Provides automatic tax filing
- Has robust data security
- Has direct deposit
- Has available support 24/7
Besides calculating your employee’s wages, automated software can also provide regular comprehensive payroll reports that can help you monitor your finances. Some even use combined HR and payroll software for more efficient employee and payroll management.
Once you’ve made your choice, all you have to do is input the necessary payroll data and documents, such as employee information and tax forms, into the software. Ensure that what you’ve placed in the system is accurate to avoid any financial errors.
Hiring Payroll Services
You can also get management assistance from professional payroll services that use automated software. Payroll services will come in especially handy for owners of large corporations and businesses with a large number of employees.
All you have to do is track your employees’ work hours and forward this data to the service provider. The service will calculate the payroll amount based on the hours an employee has worked and deduct taxes from their paychecks before subsequently rolling them out during payday.
Get the Ideal Payroll Service With Unloop
Payroll is part and parcel of any business, no matter the industry. Plenty of accounting tasks are needed to process payroll, from tracking your employees’ work hours to delivering their wages on time. And while these tasks can be done independently and manually, doing so will be time-consuming and may lead to unintentional errors.
Get stress-free automated payroll management with Unloop’s payroll services. Our team of professionals uses payroll tools like QuickBooks that will ensure automated, organized, and efficient payroll processing.
Book a call with us today!