Payroll is a fundamental accounting function in any business as it deals with the financial and salary aspects of employees. HR and business leaders are fully aware of how complex processing can be for any business, regardless of its size. It includes compensation, salaries, deductions and more that must be accurately calculated in compliance with tax laws. In addition, there is constant pressure to avoid errors that are common in manual processing. You need to invest a lot of effort and time to follow important steps such as: These include reviewing, entering employee information, and distributing pay slips that take up a lot of your precious time.
Fortunately modern Online payroll software Integrated into other systems, all of the above tasks can be managed in next to no time. It can perform just about any HR related payroll-related functions and works hard for you. Although payroll has traditionally been an accounting task, with the advent of software tools, these functions can be easily performed by HR professionals. The optimized payroll system manages the entire employee database, offers detailed insights and, if necessary, provides precise information. The improvement of payroll accounting through a sophisticated software system not only increases the work ethic of the employees, but also saves a lot of time that is required to carry out lengthy calculations and manually complete the documentation.
For all small, medium and large companies with time-consuming payroll accounting, we have listed five ways in which automated payroll software can save time. Take a look beforehand at the indispensable functions of the payroll software that make the system time-efficient.
Features to look for in payroll software
Payroll software is one of the first technology purchases companies are making today to streamline their payroll processes and ensure compliance. The system helps HR teams calculate exact salaries of employees and debit the amount in a timely manner. It integrates with Performance management software deduct the correct amount from employees’ accounts based on their selected pension plans. The most common problem, however, is that employers often purchase payroll software that is not a good fit for their company. We introduced some features that will make your payroll software stand out from the rest.
- Direct deposit
- Compliance Management
- tax declaration
- Compensation Administration
- Employee self-service
- Bookkeeping and time recording
- Easy integration
- Cloud based solution
Now that you understand the features of an efficient payroll system, let us know how they can save your valuable time:
Simplified time recording
The hardest part of payroll is tracking employee time and attendance to calculate accurate salaries. Gathering all the data related to their free time, checking in and out and organizing the data is not easy. You need to collect the information from multiple departments, managers and in different formats. Of course, using spreadsheets is not enough for this, and you need an automated system to get your jobs done. Hence comes a payroll software system that addresses this challenge by simplifying time and attendance and attendance tracking.
It helps you pay codes and streamlines the process wherever possible. This makes timing a breeze and reduces errors in coding, ledger tracking, calculation and communication. It tracks check-in and check-out, time-offs, PTO, etc. for correct and timely payroll accounting. The system updates and edits the information without human intervention so that all functions are based on the latest and greatest information. It deletes older and outdated data and at the same time offers the highest level of security. You no longer have to store information in multiple locations and you have easy access at all times.
Reduced manual errors
Needless to say, manual processing takes more than a week, and there is no guarantee that it is correct. There is always the possibility of an error with manual calculations. It would take another week or more to identify and correct these errors. Until you have completed them, you will have to prepare again for the payroll for the next month. Therefore, it makes sense to invest in a reliable payroll system that eliminates the risk of errors and omissions. Rest assured that you will save a lot of the time and energy it takes to calculate the deductions. It drastically reduces the time it takes to handle all of the processes for you.
If you go one step further, employee timesheets will also be automated. When they clock in and out using tracking software, there is no confusion or discrepancy about the total hours worked by each employee. The software collects and evaluates the data, adjusts the salary rate, attendance and other factors and converts the data into pay slips. All you have to do is enter the employee information and hours and the system will take care of the rest. This reduces wasted resources copying data and messing around with formulas.
No matter how well organized your manual payroll is, maintaining spreadsheets and files can be cluttered and time-consuming. However, with cloud-based payroll automation, all documents and records are stored in one place. You can remotely access reports and information from any laptop, mobile device or desktop with the appropriate software installed. The system quickly creates annual and monthly reports and shares them with all authorized persons for better analysis. It offers searchable and archived payroll slips that can be created at any time.
Fast and accurate reporting is a huge benefit for employees and employers who want instant access to information. Also, it helps with legal compliance when creating reports. Many companies have to keep detailed pay slips for around four or three years, depending on the industry and location. Instead of wasting time submitting reports manually, companies can switch to online payroll services and sort it all out with no hassle from HR managers.
Automation of the billing process
The cloud-based software solution for payroll also automates other aspects of payroll, thereby reducing time. The end-to-end payroll services take care of all calculations, tax returns, data collection, commission and bonus payments, setting up direct deposits and much more for you. The automated full-service payroll accounting saves time for payroll accounting and takes care of all worries about wage tax. Every task is an exchange of information and communication between employees and the HR department without manual systems. It also automates other operations like time tracking, benefits management, etc.
The payroll software also provides automatic data review so administrators don’t have to spend hours comparing data and spreadsheets to review the information. Opt for a custom payroll system to run validation checks according to your requirements. For additional simplification, you can trigger the validation process by a specific event and focus on the revisions and implementations needed to fix any potential issues.
Every year the government and other regulators impose millions of penalties related to labor taxes. Thanks to payroll software that includes tax calculations and compliance features to help you comply with all local, state, and federal laws. Legal laws are also constantly changing and it can be daunting for employers to keep up with the changes, but the payroll system updates all rules and regulations and communicates them to users as well.
Payroll software covers compliance with tax regulations, labor laws and other payroll laws, thus reducing the risk of errors and penalties by keeping you away from the non-compliance situation. Even without a tax compliance function and consistent payroll reports, it is sufficient to avoid legal consequences and fines.
Time is money, and for companies that work on hectic schedules, time is more valuable than most resources. Automated billing software saves a lot of this valuable asset by taking over most of the billing functions. Yes, there are some up-front costs associated with automation, but the system is worth every penny and pays for itself in no time.
Author biography: Alicia works with the editorial staff of Accomplish EP, a leading company Talent management software. Researching, reading about and writing about the latest technologies has always been her passion. She looks for new ways to express her opinion, explore technological advances, and document the details. You can always find that she enjoys books or articles on various subjects, or is writing her ideas in a notebook.