Payroll management is a basic accounting function in any company as it deals with the financial and salary aspects of employees. HR and business leaders are completely aware of how complex processing can be for any business irrespective of its size. It includes compensation, salaries, deductions, and more which must be calculated accurately while staying compliant with tax laws. Adding to it is a constant pressure of avoiding errors that are common in manual processing. You must put a lot of effort and time to follow essential steps, such as double-checking, entering employee data, and distributing pay stubs which suck up a lot of your precious time.
Fortunately, modern online payroll software integrated with other systems manages all the mentioned tasks in a jiffy. It can do nearly every HR function related to payroll and works hard on your behalf. Although payroll is traditionally an accounting job, with the advent of software tools, these functions can easily be performed by HR professionals. The streamlined payroll management system maintains the complete employee database, gives detailed insight, and provides accurate information whenever required. Improving payroll processing through a sophisticated software system not only boosts employee morale but also saves a lot of time required to do lengthy calculations and complete documentation work manually.
For all the small, medium, and large enterprises with time-consuming payroll processing, we have listed 5 ways how automated payroll software saves time. Before that, have a look at must-have features of payroll software that make the system time-efficient.
Features to Look for in a Payroll Software
Payroll software is one of the first technology purchases that businesses make these days to streamline their payroll processes and stay compliant. The system helps HR teams to calculate accurate salaries of employees and debit the amount on time. It integrates with benefits administration software to deduct the right amount from employees’ accounts based on their selected benefits plans. However, the most common problem is that employers often end up buying payroll processing software that is not a great fit for their organization. We have shared a few features that make your payroll software stand out from others.
- Direct Deposit
- Compliance Management
- Tax Filing
- Compensation Administration
- Employee Self-Service
- Accounting and Time Tracking
- Easy Integration
- Cloud-based Solution
Now that you are aware of the features of an efficient payroll system, let’s know how they save your valuable time:
Simplified Time Tracking
The hardest part of payroll processing is tracking the time and attendance of employees to calculate accurate salaries. Collecting all the data related to their time-offs, check-in and check-out time, and organizing the data is not easy. You have to collect the information from multiple departments, managers, and in different formats. Of course, using spreadsheets won’t be enough for this and you need an automated system to accomplish your tasks. Hence, comes payroll software system that addresses this challenge by simplifying time and attendance tracking.
It helps you with pay codes and streamlines the process wherever possible. It makes time-keeping hassle-free and reduces errors in coding, ledger tracking, calculation, and communication. It tracks check-in and check-outs, time-offs, PTO, etc., for correct and timely payroll processing. The system updates and edits the information without human intervention so that all functions are based on the latest and greatest information. It deletes older and outdated data while providing utmost security. You no longer have to store information at multiple locations and have easy access anytime.
Reduced Manual Errors
We need not say that manual processing takes more than a week and that too without any guarantee for accuracy. There is always a possibility of error while doing manual calculations. Identifying these mistakes and correcting them would take another week or more and by the time you complete it, you have to prepare again for payroll processing for the next month. Therefore, it is sensible to invest in a reliable payroll system that eliminates chances of errors and omissions. Rest assured that you will save a lot of time and energy required to calculate deductions. It drastically reduces the amount of time to handle all the processes for you.
Going a step further, it automates employee time-sheets as well so when they clock in and out using tracking software, there is no confusion or discrepancy about the total hours worked by each of them. The software collects and evaluates the data, adjusts the pay rate, attendance, and other factors, and turns the data into payroll. All you need to do is enter employee information and hours, and the system will take care of the rest. This reduces wasted resources on copying data and fiddling with formulas.
No matter how organized your manual payroll processing is, maintaining spreadsheets and files can be messy and time-consuming. However, with cloud-based payroll automation, all the documents and records are stored in one place. You can access the reports and information remotely from any laptop, mobile device, or desktop with appropriate software installed. The system prepares annual and monthly reports within no time and shares them with all the authorized people for better analysis. It offers searchable and archived payroll reporting that can be generated anytime.
Quick and accurate reporting is a great benefit for employees and employers who want easy access to information instantly. Also, it aids in legal compliance while creating reports. Many businesses are required to keep detailed payroll reports for approx four years and three years based on the industry and location. Rather than wasting time filing reports manually, organizations can switch to online payroll services and keep everything sorted without much effort from HR managers.
Automation of Payroll Process
Cloud-based payroll software solution automates other aspects of payroll processing as well, cutting down on time. The end-to-end payroll services handle all the calculation, tax filing, data collection, commission & bonus payments, setting up direct deposits, and more for you. The automated full-service payroll saves time to run payroll and keeps all the worries regarding payroll taxes. Every task is an exchange of information and communication between employees and the payroll department without manual systems. It automates other procedures too, such as time and attendance, benefits administration, etc.
Payroll software also offers automatic data validation so administrators don’t have to spend hours checking data and spreadsheets against each other to verify the information. Opt for a customized payroll system to perform validation checks as per your requirements. For added simplification, you can trigger the validation process by a specific event and focus on necessary revisions and implementation to resolve potential issues.
Every year, the government and other regulatory agencies issue millions of penalties related to employment taxes. Thanks to payroll software that includes tax calculations and compliance functions to keep you compliant with all the local, state, and federal laws. Also, statutory laws are ever-changing, and keeping up with the changes can be daunting for employers but the payroll management system updates all the rules and regulations and convey the same to users as well.
The payroll software covers tax compliance, labor laws, and other payroll laws, thereby reducing the chances of mistakes and penalties by keeping you away from the situation of non-compliance. Even without a tax compliance feature, and end-to-end payroll reports are enough to avoid legal consequences and fines.
Time is money and for businesses that run on hectic schedules, time is more precious than most resources. An automated payroll software saves a great deal of this valuable asset by taking care of the majority of payroll functions. Yes, there are some upfront costs associated with automation but the system is worth every penny and pays for itself in no time.
Author’s Bio: Alicia works with the editorial team of Accomplish EP, a leading company offering talent management software. Exploring the latest technologies, reading about them, and writing her views have always been her passion. She seeks new opportunities to express her opinions, explore technological advancements, and document the details. You can always find her enjoying books or articles about varied topics or jotting down her ideas in a notebook.