One of the most tedious parts of owning a business is doing payroll. It includes a lot of calculations and taxes, which can be confusing for new business owners. But as your business grows and you hire new people, you will have to deal with payroll duties at some point in time.
According to research, 40% of business owners agree that payroll is the most time-consuming aspect of running the business. Experts agree that payroll management is tough, but it doesn't have to be. Take advantage of technology and use payroll management software.
Let's learn the key benefits of an employee payroll management system and why you should invest in one for your small business.
An Overview of Payroll Software
What exactly is payroll software? To simplify things, it manages everything that has to do with payroll. Payroll software automates everything from employee pay, attendance, and all necessary human resource records.
Payroll systems save time for human resource personnel and are less likely to make errors. With this, employees are more likely to be satisfied with the management of their pay. Applications such as these make it convenient to run a business.
Different companies offer online payroll management systems. If you are interested in getting one for your business, there are two things to look for:
- Reliable. Ensure the brand has positive feedback from business owners to ensure its effectiveness.
- Highly customizable. The software should be able to cater to your business’s needs. For example, it should manage all types of employees—full-time, part-time and temporary. In addition, you can ask for a trial to ensure all your payroll concerns are covered.
What Are the Advantages of Payroll Software?
As your business grows and employees increase, the human resource department will only get more swamped. Payroll software will lessen their workload and let them focus more on other aspects of employee management. Here are some more reasons you should ditch manual payroll and switch to automated payroll systems.
Ultimate time-saver
According to business studies, HR personnel spend 80 hours annually on payroll processing alone. However, this much time can be spent on other areas of your business. For example, many successful businesses allocate a chunk for employee development, goal setting, and strategic planning.
Take advantage of the convenience of the payroll software so you can focus more on how to develop and grow your business further.
Transparency
Payroll software promotes transparency that can help build trust among your employees. The software allows your employees to see how much they are paid and the breakdown of any deductions. This also gives your employees confidence that they will always receive their pay on schedule.
But not to worry, even if your employees can track their records, you can still restrict access to important logs like attendance, benefits, and time logs. They can view them, but only the admin can make changes.
Reduces error and makes it more secure
Recent studies state that almost 82 million employees are affected by errors made by manual payroll processing. Payroll problems can be frustrating on both the side of the management and employees. Such issues can also cause more problems because they affect how employees view management.
In addition, payroll software is more secure. Manual records are prone to compromise. Your employee's personal information can easily get leaked, unlike payroll systems with passwords and layers of security.
Easier employee monitoring
If you have a large number of employees, it can be challenging to keep track of them all. It will be more difficult if your employees work remotely and have irregular schedules. Payroll software can do the tracking for you. It can store your employee's time data, whether they have to work overtime or under time, and note days when they are late or out from work.
Moreover, payroll software can track your employees anywhere around the globe. So if you have a big business or international branches, you can manage all the payroll in one software even when you're not in the same locale.
What to Expect in Payroll Software?
If this is your first time to hear about payroll management software, you obviously have little to no idea how it works. So to convince you to get an automated payroll manager for your business, here are five of the best features of payroll software.
Easy payroll management
The software can easily do all the calculations for you. From bonuses, holiday pay, employee benefits, tax deductions, overtime, and other factors that can affect an employee's salary. You can also print payslips provided by the software once the payment is processed.
Moreover, you can print cheques directly from the software for employees whose pay is not directly transferred to their bank accounts.
On-time direct deposit
Payroll software can manage direct deposits of your employee’s pay. All you need to do is input the important details of the payment and when it's scheduled. From there, the software will do it all for you. So you don't have to worry if the payment has been processed on time or if you missed an employee on payday.
Automated software is less prone to errors, so you can avoid issues which translates to employee confidence in the system and the company’s management.
Attendance and time tracking
Attendance is the number one factor that affects the employee's pay. Therefore, it will be a great convenience for the HR department when you consolidate attendance checking with the pay. In addition, with this feature, the HR department will have an easier time in case employees have inquiries about certain deductions and changes in their pay.
Tax filing
Managing employee taxes is another headache for the human resource department. Payroll management systems can take care of all tax calculations, including an employee's withholdings, insurance and other necessary contributions. Furthermore, it can generate tax forms and records of payments.
These are necessary documents for income tax filing, so you file and remit them properly.
Self-checking of records
Several payroll services allow employees to update their information anytime. So, for example, if there are any changes in their bank forms or errors in the information, employees can immediately change them without going through so many requests and processes.
Furthermore, this transparency can answer minor inquiries of employees regarding their pay without needing to talk directly to someone from the HR department.
Conclusion
The automated payroll managing software is a huge convenience for your business. It makes the flow of money in your business smoother and error-free. If your business is continuously growing, investing in a web-based payroll management system is a step forward in handling your business better.
If you have decided on getting an automated payroll software, experts at Unloop can help you run your payroll process smoothly. Our experts will link your payroll in cloud-based software so that we can do everything for you. Our software also generates reports you can use for proper tax filing.
Book a call with us now and put your payroll needs in our hands!