When your business starts growing, hiring employees will be a must to help you with your business operations. And hiring people means you need to run payroll. Payroll management is a critical function for any business, and it involves many complex processes, such as calculating employee salaries, taxes, and benefits.
With the advancement of technology, companies have shifted from manual payroll processes to automated payroll management systems. Payroll management software is a tool that simplifies and streamlines payroll tasks, helping businesses to manage employee compensation accurately, efficiently, and securely.
The Many Benefits of a Payroll Software
Payroll is an essential aspect of any business. It involves managing employee salaries, wages, taxes, and other related financial activities. In this modern age, many businesses have already adopted payroll software to manage their employee payroll. Those that haven't are missing out on numerous benefits. Here are some of the great benefits of payroll software and how it can streamline payroll processes for businesses of all sizes.
Automated Payroll Tasks
Whether you run a small business or a vast enterprise, automated payroll software will benefit your business. Payroll processing involves repetitive tasks. Imagine if you have 50 employees—you will have to do these tasks over and over again every month or on a bi-weekly basis. It will be time-consuming, tiring, and confusing.
Payroll solutions can automate this repetitive task for you and reduce manual labor. You can ensure that all processes involved will be accurate and timely.
Decreased Manual Errors and Processing Time
Payroll problems are the last thing you want to happen. Tracking down where the calculations went wrong will be difficult since many factors could affect the calculation. If you have one or two employees, calculating their salary will be easy, but if you have several salaries to calculate, doing it manually will increase the risk of errors.
Furthermore, processing the wrong amount of pay to your employees will affect their relationship with the administration. Payroll software solutions also help decrease processing time.
Accurate and Punctual Salary Payments
If you want to build rapport with your employees, providing them with accurate pay is the way to do it. An online payroll system will ensure that your employees get the right amount they expect at the end of each payroll period. Additionally, you’ll never need to stress about whether your employees will receive their pay on time.
Most online payroll software have a direct deposit feature that allows you to schedule your payments for the system to directly send the money to your employees’ bank accounts. All you need to do is input the necessary bank account details and authorize the transfer, and you can ensure all payments will be processed.
Transparency in Salary Calculation
When a company has transparency with their pay, they are more likely seen as an organization that implements fair practices. Adopting payroll software can give your employees transparency, which comes with these benefits.
- Attracting job talents. Individuals looking for work will have pay expectations, and if a business can't provide any details about their compensation, applicants are less likely to take the job.
- Increasing workforce productivity. When your employees see the breakdown of their pay, and they know they are being paid correctly, it will push them to work efficiently for the company.
- Increasing employees' trust in the company. According to surveys, over 90% of employees trust their company when they are transparent with compensations.
Efficient Payroll Tax Calculation
Payroll taxes are specific amounts deducted from employees' salaries. These taxes are used to pay social security, Medicare, and other federally mandated taxes. It is the employer's obligation to process the taxes on behalf of their employees, and failure to do so will lead to legal consequences.
Here are some of the payroll taxes employers should know about:
- Federal income tax
- State income tax
- Social security tax
- Medicare tax
- Federal unemployment tax
- State unemployment tax
- Worker's compensation tax
Familiarizing yourself with the taxes involved in payroll is already a challenge; imagine its computations. Online payroll services will ensure that you are always tax compliant and all necessary taxes are accounted for.
Secure Storage for Employee Data
Payroll software is essential for businesses to manage employee payments accurately and efficiently. However, storing sensitive employee information in the software can also pose a security risk if the appropriate measures are not taken to protect it. Secure information storage in payroll software provides several advantages.
One of the most significant advantages of secure information storage in payroll software is protection against data breaches. If sensitive information such as employee social security numbers, bank account information, or salary details fall into the wrong hands, it can lead to severe financial and reputational damage for the company.
Furthermore, many countries have data protection laws that require companies to protect sensitive employee information. Businesses can comply with these rules and stay out of trouble by storing payroll data securely.
Centralized Payroll Management
Centralized payroll management consolidates the payroll processes and systems into a single, centralized location. Centralized payroll management can increase efficiency by reducing redundant processes and minimizing errors. By consolidating payroll data and processes, businesses can streamline their payroll processes, reduce the time and effort required to manage payroll, and minimize the risk of errors and fraud.
Furthermore, centralized payroll management can provide businesses with greater visibility into their payroll activity and financial data, enabling more accurate financial reporting and forecasting and better cash flow management. Overall, centralized payroll management can help businesses operate more efficiently, save costs, and improve financial visibility and compliance.
5 Best Software for Payroll Management To Consider
What is the best payroll software management for businesses? Each payroll software has different features that small, midsize, and large businesses can capitalize on. Here are the best payroll software options to consider.
- Gusto: Gusto is a cloud-based payroll solution that offers features such as automatic payroll tax calculations and filings, employee self-service tools, time tracking, and benefits administration.
- QuickBooks Payroll: QuickBooks Payroll is an online payroll solution that offers features such as automatic payroll tax calculations and filings, direct deposits, employee self-service tools, and integration with the QuickBooks accounting software.
- ADP Workforce Now: Automatic payroll tax calculations and filings, employee self-service capabilities, time and attendance monitoring, benefits administration, and HR management tools are just a few of the features that ADP Workforce Now's cloud-based payroll software solution has to offer.
- Zenefits: Zenefits is a comprehensive HR and payroll software program that includes facilities for HR management, employee self-service, time tracking, benefits administration, and automatic payroll tax calculations and filings.
- Paychex Flex: Paychex Flex is a cloud-based payroll solution that offers features such as automatic payroll tax calculations and filings, direct deposit, employee self-service tools, time and attendance tracking, and benefits administration.
Get Professional Payroll Services at Unloop
Business owners in the industry know how stressful it is to manage payroll. Fortunately for small businesses, Unloop has professional payroll services to handle your employees’ pay.
Our team of experts will link your business to cloud-based payroll management software, and we'll take it from there. We'll also generate necessary year-end reports, file payroll taxes, and ensure your employees receive their pay accurately and on time. Book a call with us today and let professionals handle your payroll.