Top Benefits Of Having Automated Payroll System
Anyone that owns a business will know that when the time of the month comes to do payroll it’s not always a simple task. It requires a lot of thought and meticulous precision. That is until payroll systems started to become automated. This has ended up saving companies huge amounts of time and allows workers to continue with developing and running the business. If you own a company and you haven’t converted to an automated payroll system, then you might be wondering what the benefits are.
Here we take a look at the top benefits of having an automated payroll system.
Quick Wage Calculation & Payslip Generation
The first benefit is the amount of time you save calculating your employee’s wages and generating their payslips. Manual payroll involves a lot of time going over the numbers, writing checks, and filling out the essential forms for tax purposes. This time could be spent elsewhere in other areas of the company. There’s also a chance of legal ramifications if any of the paperwork is completed incorrectly. Stress that no business owner needs.
Automated payroll systems will do all of this for you and with precision. It’s able to calculate the hours your employees have worked, from salary to hourly wage, and tackles things such as overtime commission, bonuses, and raises with ease. Looking at this link explains that the automated system will generate payslips and send them automatically to each employee and pay them straight away. A no-fuss payment system will make your employees much happier knowing they’re going to get paid on time every month.
Less Error & Easy Tax Payments
When using an automated payroll system you will have complete ease of mind that you are completing and paying your taxes correctly. With over 10000 tax jurisdictions in the US and the tax laws changing frequently, the tax process can be a lengthy and confusing one.
Using an automated system will never allow this to be a problem as it calculates the tax for each employee using their tax codes. These systems will automate their tax filing, ensuring they meet deadlines and avoid any penalties they could incur if forgotten about. Stressing over tax will take your concentration away from the important day to day aspects of running a business.
Brilliant Recordkeeping
In the US it is a legal requirement for a business to keep a record of anything tax-related for a minimum of four years. The US Department of Labor requires a minimum of three years. Having an automated system will take away any stress of record-keeping as it’s done automatically. Storing records manually comes with the risk of losing papers or misplacing them and a requirement of a lot of space. Something, not every company has if they’re renting a small office. There’s also the risk of them being destroyed in the event of a disaster, maybe a fire in the office, or a break-in. Having them stored digitally is much safer.
These systems allow important documents to be accessed easily and stored in specific files, making it easy to find and send when required.
Updating The System Is Easy
When updating files manually, it takes a lot of time and effort to sort through all the different documents to find the one you’re looking for. Then you have to input all the data manually on a new document. With automated systems, it’s much easier to locate and change the details of any employee. This could be a change in their tax code or a change in pay. Once it’s been changed, the whole system will configure around it and send everything as normal with the updated information.
Helps Your Employees
Your workforce is one of the most important things about your business so keeping them happy is essential. Using an automated system will ensure that they are paid on the same date at the same time every month. Not only is this beneficial for the company, but it also allows your employees to budget with ease. Funds going into their account at the same time each month will allow them to see how much money they have and what they have to budget to get through the month. It also reduces the risk of employers not writing checks which can lead to legal battles further down the line.
Automated systems also keep track of sick pay, holiday pay, and any bonus schemes you might have in place. This means your employees can easily see and access their rights when working for you.
If you haven’t transferred over to an automated system then now is the time to do so. The number of benefits that come with having one of these systems is endless and you’ll find yourself far less stressed when it comes to payday. Finding a system that integrates with the rest of the company is essential. You don’t see other departments not communicating so why wouldn’t the payroll system? Change your company for good.
