Payroll Software Benefits and Why Your Business Needs It

Doing your own payroll manually can be tedious. Automating the payroll process with payroll software can help eliminate laborious tasks.

Payroll management can be tough for business owners. Zimyo stated that 25% of small businesses still prepare payroll manually. This is definitely time-consuming and effort-intensive. When the workload is too much to handle, you should consider using payroll software.

What is Payroll Software

If you have a large number of employees, it's impossible to ask HR to manage payroll manually. Payroll software will help your company process payroll efficiently. Payroll software depends on your computer system and allows you to gather all payroll-related information electronically. Compared to manual payroll, it is not as laborious and time-consuming, since everything is stored in one place. It can also reduce the potential mistakes caused by manual payroll processes, and save time and resources. 

Benefits of Using Payroll Software

While the word "automated" is closely related to time-saving computerized systems, automated payroll software benefits extend beyond that. Here are some things you can improve with payroll software.

Reduce Human Error

Your employees deserve accurate and timely payments, and payroll software can help you achieve it. Accuracy is one of the advantages offered by payroll software. 

According to the American Payroll Association, payroll processing costs can be reduced by up to 80% through automation. It definitely eases the burden on your payroll officer and offers a better experience for your employees.

Compliance

Staying updated with the current laws, regulations, and changes is one of the most common payroll mistakes that could happen. With payroll software, it's easy to keep track of company rules and regulations. It also applies to taxes and laws. You can enter the necessary changes into the system, and they will be applied instantly.

Manage from Around the World

With the trend of remote working, payroll software will ensure your overseas employees are paid on time. Additionally, some software offers employee calendar features to help managers monitor employee leave and overtime.

Secure

Payroll files contain sensitive information about your employees, such as addresses, birth dates, and bank details. Reliable payroll software will ensure this information cannot be processed by outsiders. Whether it is password-protected or conditional access, it is still more secure than notes and papers.

No Expert Needed

When you are a small business, sometimes you cannot afford to hire a professional or outsource your payroll. Payroll software can become an alternative to this problem because payroll software is more cost-efficient and doesn't require payroll backgrounds from users. This means you can designate any employee in your company to handle payroll.

Key Features of Payroll Software

Generally, payroll software calculates the usual payroll management automatically. However, different software may come with different extra features. When deciding which payroll software to use, People Managing People suggests these features to keep in mind.

Payroll Management

As stated above, payroll software should be able to handle basic payroll preparations. It includes calculating bonuses, employee expenses, and overtime and holiday pay. Additionally, it should be easy to print out payroll reports for employees who don't enroll in direct deposits.

Direct Deposit

Direct deposit is a deposit of money by a sender directly into a payee's account. Payroll software automatically manages this for you. It will make sure your team is paid correctly and on time.

Time and Attendance Tracking

Most payroll software integrates with HR systems. Some even assist with maintaining employee time and attendance records. The feature is helpful for the HR team to review the overall employee activity within a pay period.

Income Tax Filing

Good payroll software will also manage company taxes. It should calculate taxes, withholdings, insurance, and retirement contributions automatically. When there is a change in regulations, you should be able to change the calculation easily as well.

Employee Self-Service

Payroll software also allows registered employees to access their own information. This feature is useful for transparency and building employees' trust. In most software, employees can view their payment history, change their personal information, and change payment preferences.

Final Thoughts

It is undeniable that automating payroll processes with payroll software is appealing. Investing in payroll software might also be a game changer for your business. Businesses can increase efficiency and accuracy in payroll processes, gaining a competitive advantage. All of these advantages can only be enjoyed by your business if you choose the right payroll software, so make sure you take into account all the necessary considerations.

Next Read: Payroll and Human Resources: The Benefit of Integrating and Streamlining Functions