How much time does your company spend handling payroll each month? Depending on the number of employees you have and who is handling the payroll, this can add up to a substantial amount of time. Manual payroll systems are still common among many small to medium-sized businesses, often because it’s simply the way they’ve always been doing it. They would be much better served taxes with good payroll software with an automated system.
Benefits of Automation
Manual payroll on spreadsheets may have several faults. It will take much longer to do, and if your company has a large number of employees, you might have to dedicate an entire team to payroll. This is a waste of time and money. There is also the risk of making mistakes with manual payroll. When using automated software, you will not have to worry about those issues.
Payroll software can automate payroll and taxes to help ensure there are no mistakes made, which would otherwise be costly for your company. These types of mistakes could lead to employees being paid too little or too much.
Complete payroll solutions can automate payroll processes, tax computations, and salary disbursals by direct deposit or checks. It helps to ensure accuracy and efficiency.
One of the other parts of payroll processing that is necessary and often adds a lot of time is salary and wage deductions for taxes. This includes federal income tax, Social Security, and Medicare. In most states, it will also include state income tax. Trying to calculate the taxes for the employees manually can be confusing, and this is where some errors could be made. Quality software will automate the taxes for you, so you don’t have to worry about running into problems with the IRS.
Automated systems can handle all of the wages, deductions, taxes, and more, so you and your team do not have to worry about it each pay period. As long as the entries are correct when setting up the software and adding all of the information, there should not be any errors.
Given the benefits that are available with payroll software that will automate the pay and the taxes, there is no reason not to choose it for your business. It is an affordable option that is made even more affordable when you consider how much time you can save and the overall reduction in risk.
Important features to look for in a payroll software/solution
Automation with payroll software has plenty of benefits, but you do need to be sure you are choosing a system that can do everything you need. You don’t want to choose software that will still require manual payroll/tax deductions. The program you choose needs to be capable of automating both, and it should be easy to use. You don’t want payroll software that has a steep learning curve. You do want to have software that offers features that are actually useful.
Take some time to explore the offered benefits included with the software. What else is it able to do for your business? Try to find software options that can handle benefits, salary changes, 401(k) plans, ACA compliance, employee documentation, and more. Having a robust software solution is always a good idea. It will allow for more to be done from the same interface. This can make managing these aspects of your business easier since only one piece of software will need to be learned.
Get Familiar with the Software
Once you have chosen some software and have had a demo or a free trial, it’s time to get fully acquainted. Whoever will be using the software should get familiar with the way it works, so they do not have any issues when it is put into practice. The software company should have contact information available for those who may have questions about different aspects of the payroll software, so they can get the answers they need.
Complete payroll solutions will be possible with the right software. It’s time to elevate your business to the next level.