Payroll processing involves managing the payment of wages by a company to its employees. There are several steps involved in payroll processing which includes gathering employee time information for a selected time period, managing benefits & deductions, and distributing employee pay for that time period. Efficient payroll processing services have become a necessity for every organization to streamline payroll, optimize productivity and improve administration. Companies that manage payroll in-house use a payroll software system. However, nowadays, many companies are outsourcing payroll processing task to professional business process outsourcing companies. Outsourcing services of a reliable business process outsourcing company ensures smooth payroll management services which help you achieve better resource management and save you the hassles and time-consuming tasks of payroll processing. Well-equipped payroll management software can help relieve your HR department from monotonous manual work. The following are some of the benefits that HR department and business can enjoy by using payroll software for managing payroll in house.
Automate tedious tasks – Payroll processing is really a tedious task for the HR department. HR activities including inputting data, handling leave requests and sorting through overtime submissions takes a lot of time. So, the HR department may not be able to focus more on the important job of managing wages for every employee. Integrating payroll processing with other HR systems will help determine how much the company has to pay for hourly employees. Payroll software accurately calculates taxes and deductions. This eliminates the need for employees to perform the task manually. In addition, payroll system sends automated emails reminding managers to approve employee’s time. By using payroll software, employees can focus more on complicated duties.
Avoid making errors – Payroll software reduces the chances of costly errors. By using payroll software, the company can greatly reduce the risk of human error and ensure that employees will get the exact pay they have earned.
Save time – Extra time and extra resources are needed to manage payroll manually. However, payroll software can accelerate all aspects of the payroll process with a number of automated functions. Payroll software helps ease the task of those who are in charge of the payroll. This in turn helps them save a vast amount of time.
Data Security – The security of business data is very important and payroll data is especially sensitive. The payroll files usually contain personal information such as mailing addresses, dates of birth, Social Security Number, bank details etc, that need protection. Whenever the company needs to send private information of an employee to a third party by using good quality payroll software, the company can ensure that the information is secure and cannot be accessed by anyone outside the organization. It is necessary that a company should consider the security of their own IT systems. In fact, a good payroll solution will accord with the highest IT security standards.
Helps Create Pay Slips – With commercial payroll software, you can quickly and easily generate pay slips for all your employees. Templates allow you to make sure that the statutory minimum amount of information is included.
Reminders – With different reminders, users can avoid missing important tasks and get them up to speed when they sign in to the software. This makes it very easy for the user to keep on top of pay slips and tax submissions.
Eliminate the need to hire professionals – Using the right payroll software, you can delegate the payroll task to employees with no experience or to anyone with a good understanding of IT, thereby eliminating the need to hire a professional. This in turn helps reduce business costs and make it possible for cross-training within your small business.
Helps the business to move quickly and work more efficiently – With the payroll software, the entire process of preparing payroll becomes much quicker. It also allows you to instantly prepare reports and statements with the single click of a button, eliminating the need to wait for a couple of hours or days to access important reports. This helps business to move quickly and work more efficiently
Reduces cost – Business owners always want to keep profits high and costs low. Switching from a paper-based payroll processing system to a more efficient payroll software system helps save vast amounts of money, so that the business can invest these funds elsewhere and expand. In addition, the cost savings will increase as your business grows. The one-time fee allows you to add unlimited companies, payrolls and employees, thereby making the investment a smart one as your firm continues to add new workers. This in turn results in lower costs and a more strategic approach to running your small business.
Helps to forecast easily – Payroll system allows you to view and control all payroll expenses instantly. This helps you to graph the financial data to create a forecast. Having an idea about the performance of your business makes it much easier to choose new workforce for the company. It will also allow you to make adjustments and calculate salary increases. You can make an assessment of how it will affect your finances.
Keeps payroll data safe – With payroll software you can save the documents and data to various databases available online. For keeping them safe, you should have a backup system. This will help recover all your recordings, even if your computer or system is destroyed.
Reliable – Payroll software generates reports that are both authentic and highly accurate. Businesses can rely on statements that are prepared by payroll software, including the latest tax updates from the IRS, and process payroll with complete peace of mind.
Allows you to stay compliant – It is necessary to keep track of every local, state and federal tax law that governs how you withhold money from employees’ paychecks. However, this is really a difficult task. Businesses need to stay compliant, but quickly-changing laws can make it almost impossible sometimes. The good news is that newer payroll software monitors those laws and other regs which helps you to stay compliant and can ensure all your deductions are accurate and lawful. This eases the burden on your payroll employees, as they no longer have to monitor compliance requirements closely.
Instead of managing payroll in-house, consider using BPO services provided by an experienced business process outsourcing company. Such companies can ensure impeccable payroll processing and allow you to focus your time and energy on your core business functions.