Payroll processing is one of the most complex tasks for any organization. Payroll administrators spend quite a few hours each month to manage tax regulations, employee benefits and compliance processes. The complications associated withmanual payroll calculations and tax withholdingsreduce accuracy of payroll processing.
Correct payroll process is essential for any business as it significantly impacts employee satisfaction. Employees expect their account to be credited withcorrect salary at the right time. Having anunpredictable payroll process, that is prone to errors, not only consumes a lot of time but also develops a stressful relationship between employees and employer.
Payroll Software For Small Business
In any small business, there are typically 1 or 2 members available inthe payroll processing team. Managing hundreds of data entries, processing employee salaries, getting approvals, and making several changes in tax codes on month-to-month basis can become challenging with limited staff and resources. Small business owners are continuously looking for innovative ways to reduce their costs and increase payroll efficiency.
Procuring a reliable online payroll management software supports payroll staff to keep on top of the payroll processes effectively.
An automated payroll software for small business helps in prioritizing weekly, monthly or daily payroll tasks .It also supports various HR operations including –
– Calculation of employee wages and taxes
– Creation and distribution of payslips
– Providing automatic signatures & direct deposits
– Managing employees’ overtime, paid time off & sick leave
– Filling important payroll related forms
– Filing necessary reports to avoid compliance issues
– Managing benefits such as health insurance, retirement plans and flexible spending accounts
Most of the small and midsize businesses outsource their payroll functions to third-party service providers due to scarcity of in-house resources. Though it may work well for them in the short-term, it may not be a cost-effective approach and takes a toll on a company’soverall budgets.Outsourcing payroll helps companies to avoid penalties, but increasesthe threat of security and confidentiality of a company’s payroll information. It also does not give the capability to run analytics on your payroll data – which is so very important for any small business.
Integrate Payroll Processing System with other HR Tools
The costs of managing payroll for small businessesare higher. Streamlining payroll processes in a well-structured workflow can surely save a lot of money and time for a payroll administrator.An automated payroll softwaremanages small business payroll more easily, accurately, and in timely manner.
If you have been worrying about tracking employee time, their paid time off or hours worked, integration of a payroll software with attendance & shift management tool can put your worries at rest.
Integrating payroll and attendance on a single platform, if done properly, gives higher accuracy to the people involved in managing these processes.
The volume of paperwork done during administration of payroll process and human resource operation is massive and time-consuming. For instance, there are 250 employees in an organization who work in multiple shifts, at different pay scales. Tracking work hours of each employee and calculating their salaries requiremany hours if done manually. Integration of leave, attendance and payroll tools simplifies the process and save HR department time that can be put towards employee engagement and development activities.
The number of hours can be further reduced when employees have an online self-help mechanism (such as view payslips, attendance, accrued vacation hours, paid time off, resource requests etc.). They will not call HR with these queries on a periodic basis.
Takeaways For You
Investing in an automated payroll management software for small business is money well spent. Avoid data entry errors and make payroll process more efficient. Also, eliminate the need to re-enter payroll data.
Not paying attention to compliance issues can be more painful for a small business owner. Streamline all the compliance processes and avoid risks.
Adding and updating benefits information is not a big task when your company has automated payroll processing system.
When employees can view their data online, the query load on HR reduces allowing them to focus on employee development and engagement initiatives.