In a world where people have instant online access to information, whether for personal or professional use, too many companies are still running their payroll manually. Doing so takes up precious resources, wastes money and makes the task more difficult than it needs to be. With all the available technology, some businesses are still using spreadsheets, basic databases created in-house and even old-school paper punch cards as a way to track employee hours. Automating the process simply makes better business sense.
Companies benefit from increased accuracy when they use online payroll solutions. All of the calculations are done automatically, reducing mistakes to a minimum. Since all data can be input seamlessly, there are no errors regarding the number of hours an employee worked or whether they were properly paid for their time. When employee information changes, users simply need to update the data once and it will permanently be stored in all areas of the program.
Time is a precious commodity most people try to maximize. With the automated scheduling systems of payroll software, duplicate or erroneous transactions can be eliminated. The human resources office can save many hours each pay period since they only need to enter the hours which the employees worked and note any special pay for vacation, bonuses or overtime. Users also save time when it comes to filling out and sending in their quarterly tax payments. With a few clicks of the mouse, reports are done and payments are completed. Using the program is also fast. It takes mere minutes to input the pay period’s information before completing the transactions. More than 60 kinds of reports can be automatically generated and saved for future use.
Cost savings are another benefit of using an automatic payroll system. Since everything is done electronically, there’s little need to distribute paper paystubs to employees, saving time, money and helping the office be environmentally friendly. Online accessibility cuts down on lost paystubs or reduces clutter. Additionally, automated systems help protect the confidential information paystubs include, reducing the risk of personal information getting into the wrong hands.
The benefits don’t stop with just the company and the HR team. All employees can benefit from features that allow them to check their account online to see their previous paystubs, W-2s and 1099 forms. Employees can register online and check their pay information at any time. They are able to see their most recent check stub at 12:00 a.m. on the day the check is issued. Additionally, there’s a three-year history so they can go back to view past pay information. They won’t need to waste their work time or that of the HR department to ask questions or get financial papers they need for their taxes or loan applications.
There’s so much to gain for companies who switch to an payroll service provider. Not only will the company always be on time in paying its employees and taxes, employees can be proactive and access their own accounts, allowing HR department to focus on other work. It’s a win-win solution to any company’s payroll problems.