If you think that just because your organization is small in size, it is not generating a considerable amount of payroll data every year, then get your basics right! Every organization's goals, regardless of its size, is to increase productivity and revenue. To achieve these goals, you need to take some burden off your employees to allow them to invest their attention in the creative fields of your business by entrusting a Payroll Management System to manage cumbersome payroll administrative and compliance tasks.
How does payroll software work?
Third party payroll software calculates the compensation, taxes, and other deductions of your workforce while abiding by regulations. Apart from this, it also keeps track of your employees' productivity and attendance so that it becomes super easy for you to manage multiple locations simultaneously without making any mistakes. In simple words, the payroll software will transform your business and result in a more productive workforce with a better bottom-line.
Why have most businesses started relying on payroll software?
Here are five key reasons as to why the demand for payroll solutions is skyrocketing:
Do you know that even the small businesses have to spend most of their valuable time to regulate the payroll functions? When an HR professional is managing payroll functions manually, all of their productive hours are wasted. However, if you decide to invest in HR Payroll Software, HR can concentrate on the strategic functions of the business, as the system will handle salary and tax calculations with ease.
Growing businesses means higher payroll expenses. Organizations of all sizes that do not rely on technology have to spend a considerable amount to ensure a smooth running of their payroll functions. This might include hiring a dedicated accountant to calculate the employee compensation and deductions, which also increases the operating expenses of the business. However, if you implement payroll software in your business processes, you will shift to a paperless environment and mitigate compliance risk associated with IRS penalties and labor laws.
- Reducing the workload of accounting tasks
With the help of software, you can generate and analyze accounting reports within minutes. The time taken to export such reports will also reduce considerably, thus reducing your employees' accounting workload. Moreover, suppose you decide to integrate payroll software with the accounting software of your organization. In that case, all of the entries will be automated, and the system will also eliminate the duplicate or erroneous entries if present.
- Attendance tracking
Employees are typically paid on an hourly or salary basis. Therefore, checking the productivity and overall attendance of employees is crucial. That is why the payroll software that comes with a time tracking feature in which you can check on the login and out timings of all your employees should be a top consideration. Every month, the payroll management tool will calculate your employees' salary and other benefits by taking note of their attendance, productivity, etc. This streamlines the entire processes and eliminates the need to manually enter your employees' working days and hours.
- Increased access to information
Employees have the right to access and control their payroll information on-the-go. Keeping this in mind, the payroll software should offer an app to the employees, in which they will be able to check their salary structure, insurance and tax deduction, number of leaves taken in the month, etc. Employees can edit their information as it changes to ensure it’s always up-to-date and accurate.
In addition to those five key benefits of payroll software, a few other advantages include:
- Automatic alerts
To ensure that you don't miss out on any critical tasks, like tax submission, missing time cards, and other deadlines.
Investing in payroll software doesn’t just save you and your people time on tasks, but it also ensures accurate payroll which results in a more engaged workforce and stronger compliance. Some payroll providers will even have the ability to configure the solution to meet the changing needs of your organization.
- Enhanced security
Payroll data is securely stored in the cloud versus loose paper in office filing cabinets or drawers. All payroll providers have IT security protocols in place and undergo regular audits and obtain certifications to ensure data is protected.
Transform your organization, maximize productivity, and streamline payroll processes by investing in HR Payroll software today.
This guest post was written by Sheetal Kamble and may not be copied or re-posted without permission.