7 Irrefutable Benefits of Investing in Payroll Software
As a business owner you will concur that managing your payroll is a herculean task. Indeed, a 2013 study by the National Small Business Association (NSBA) rates payroll issues as the 2nd administrative burden out of about 12 similar hardships provided.
If you are going through a rough time managing your payroll it is time to switch to payroll software. Why should your business invest in this innovative system of managing payroll? Here are some ideas:
- Time Saving
Every business entrepreneur will concur that the human resource department is the most labor intensive. If you are handling the payroll manually you are even forced to hire extra hands in order to pay on time while at the same time ensuring all deductions and contributions are factored.
- Versatility
This is the most outstanding quality of a reliable payroll system. It does manage your payroll and much more. For instance established systems will help in tax calculations, federal and national government deductions, new employee reporting, deduction of benefits, handle bonuses, reimbursements, flexible spending Account (FSA), calculate gross pay, instant payments for W-2 employees, enabling direct deposits and so much more.
- Cost Reduction
By reducing the amount of time used to manage your payroll the bottom-line looks better. Fewer employees are required to handle this area and you can use the money saved to expand your business. With the global economy still in doldrums, such cost saving goes a long way in stabilizing your operations.
- Strategic Planning
Some systems can help you to forecasts aspects such as costs and this is a critical factor in future planning. When you have an idea of the cost of retaining every employee it becomes easier to plan
- Record Keeping
Most government bodies including the IRS and Department of Labor require an employer to retain employee data for up to 4 years. Payroll software makes this easy as opposed to the old manual systems which would require a lot of filing. By reducing clutter you will enjoy a better organized department which goes a long way in improving productivity.
- Secure Access Online
With reliable software your human resource managers will easily access the payroll dashboard from any location. All they need is a secure internet connection in order to approve payments or carry out any administrative tasks. These systems are also integrated for mobile phone use which makes it even easier to manage payroll especially where you have virtual teams across the globe.
- Regulatory Compliance
Regulatory compliance is one of the most sensitive aspects of managing a payroll. Most employers find themselves in legal trouble years after parting with particular employees if they don’t comply with federal or national government guidelines. Issues such as tax compliance can devastate your company financially but with payroll software this is done automatically and without any chance for error.
There are many more benefits of leveraging technology to manage your payroll. The bottom-line is that you enjoy a better organized HR department, more productivity and increased cost savings.